Tube Investments of India (TIINDIA) Q1 24/25 earnings summary

Executive summary

• Standalone Q1 FY25 revenue was ₹1,960 crore, up from ₹1,780 crore year-over-year; consolidated revenue reached ₹4,434 crore, up from ₹3,767 crore; PBT at ₹208 crore versus ₹198 crore last year; consolidated PBT at ₹464 crore versus ₹396 crore year-over-year.

• Achieved strong growth in market capitalization, reaching ₹82,376 crore as of June 2024, with a CAGR of 61% since March 2018.

• Maintains a diversified business portfolio across engineering, metal formed products, mobility, and clean mobility segments.

• Significant investments in electric mobility, medical, and semiconductor assembly businesses.

• ROIC annualized at 47% for the quarter, down from 56% last year; free cash flow at ₹42 crore, down from ₹97 crore.

Financial highlights

• Engineering division revenue at ₹1,265 crore (up from ₹1,142 crore); PBIT at ₹157 crore (up from ₹135 crore).

• Metal formed revenue at ₹358 crore (up from ₹342 crore); PBIT at ₹36 crore (down from ₹44 crore).

• Mobility revenue at ₹181 crore (down from ₹187 crore); PBIT at ₹2 crore, flat year-over-year.

• CG Power (58% stake) revenue at ₹2,228 crore (up from ₹1,874 crore); PBT at ₹336 crore (up from ₹263 crore).

• Shanthi Gears revenue at ₹139 crore (up from ₹121 crore); profit at ₹29 crore (up from ₹24 crore).

Outlook and guidance

• Management targets double-digit growth in engineering and metal formed segments, driven by non-auto, EV, and export opportunities.

• Expects significant ramp-up in e-mobility, especially three-wheelers and heavy trucks, with new product launches planned.

• Medical devices business expected to see strong growth, with a new greenfield plant in Noida to start production by Q2 next year.

• Focus on expanding electric vehicle portfolio and scaling up semiconductor assembly operations.

• Continued investment in R&D and capacity expansion across business segments.