Tube Investments soars after stellar Q4 numbers

Tube Investments of India jumped 4.49% to Rs 1287.60 after the company's consolidated net profit surged 142% to Rs 143.84 crore in Q4 FY21 compared with Rs 59.46 crore in Q4 FY20.

Net sales during the quarter surged 165.3% year-on-year (YoY) to Rs 2624.72 crore as against Rs 989.40 crore recorded in the same period last year.

The company reported a pre-tax profit of Rs 213.68 crore in Q4 FY21, steeply higher than pre-tax profit of Rs 67.38 crore in Q4 FY20.

Current tax outgo increased by 66.1% YoY to Rs 45.27 crore in the fourth quarter.

The company reported 6.5% fall in consolidated net profit to Rs 286.32 crore on 28.9% rise in net sales to Rs 5,827.46 crore in FY21 over FY20.

The company's board has recommended a final dividend of Rs 1.5 per share for the financial year ended 31 March 2021.

The board has also approved fresh long-tern borrowing, to meet the company's fund needs during the financial year 2021-22, of 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.

Commenting on the financial results, M.A.M Arunachalam (known as Arun Murugappan), chairman, Tube Investments of India, said: "TII has closed the year with a healthy performance post revival of the economy from the first wave of the COVID-19 pandemic. The results are encouraging considering that the company had lost almost one full quarter of operations.

We are hopeful that with governments' constant endeavour in controlling the spread of the COVID-19 pandemic and efforts towards maintaining the momentum in economic activity, the impetus in our operations is likely to continue."

Tube Investments of India (TII), a Murugappa Group company, manufactures fabricated metal products. The company specializes in cycles, steel tubes, strips, chains, and metal formed items.

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