Tube Investments hits 10% upper circuit on strong Q4 nos, fund raising plan

Shares of Tube Investments of India were locked in the 10 per cent upper circuit band at Rs 341 on the BSE on Thursday after the company reported 26 per cent year on year (YoY) growth in its standalone profit before exceptional items and tax (PBET) at Rs 108 crore for the March quarter (Q4FY20).

Total revenue from operations, however, declined 19 per cent YoY at Rs 935 crore during the quarter, compared with Rs 1,224 crore in Q4 of last year mainly due to de-growth in auto industry. During the year, the company implemented voluntary retirement schemes in certain locations at a cost of Rs 21.97 crore to improve the productivity and competitiveness of its business.

"With the easing in the lockdown/curfew and the governments permitting operations to be resumed with necessary permission from the local authorities, the Company from May 2020 onwards has resumed operations, in a partial manner," the management said.

Meanwhile, the Board approved to raise fresh long-term borrowing to meet the company’s financial needs during financial year 2020-21, for a sum not exceeding in the aggregate Rs 200 crore, including by way of issue of privately placed secured non-convertible debentures, in one or more tranches.

Till 02:14 pm, a combined 238,000 equity shares have changed hands and there were pending buy orders for 36,000 shares on the NSE and BSE. In comparison, the S&P BSE Sensex was up 1.5 per cent at 32,065 points.