Tube Investments Reports 12% Revenue Growth in Q2, Profit Marginally Up

Tube Investments of India, a prominent Murugappa Group company, has released its financial results for the quarter ended September, reporting a consolidated revenue of ₹5,523 crore, marking a 12% growth compared to the same period last year. The company's consolidated net profit stood at ₹302 crore, a slight increase from ₹299 crore recorded in the corresponding quarter of the previous year.

On a standalone basis, Tube Investments achieved revenue of ₹2,119 crore for the September quarter, up from ₹2,065 crore a year ago. The standalone profit after tax (PAT) was ₹187 crore, an improvement from ₹168 crore in the prior year.

The performance of its key subsidiaries was also highlighted. CG Power and Industrial Solutions Limited, in which Tube Investments holds a 56.29% stake, posted consolidated revenue of ₹2,923 crore for the quarter, a substantial rise from ₹2,413 crore in the previous year. CG Power's profit before tax grew to ₹388 crore from ₹294 crore.

Conversely, Shanthi Gears, a subsidiary in the Gears Business where Tube Investments owns a 70.46% stake, reported revenue of ₹132 crore, which is lower than ₹155 crore in the previous year's same quarter. Profit before tax for Shanthi Gears was ₹29 crore, down from ₹34 crore.

Segment-wise, the engineering business revenue increased to ₹1,382 crore from ₹1,323 crore. Metal Formed Products saw a marginal revenue increase from ₹404 crore to ₹408 crore. The mobility segment's revenue grew to ₹194 crore from ₹168 crore.

Impact: These results offer investors a clear view of the company's operational efficiency and profitability across its diverse segments and subsidiaries. The steady growth in core areas and the performance of CG Power are positive indicators, while the dip in Shanthi Gears requires monitoring. (Rating: 7/10)