Tube Investments of India (TIINDIA) Q2 24/25 earnings summary

Executive summary

• Consolidated Q2 FY25 revenue rose to INR 4,925 crore from INR 4,306 crore YoY, while profit declined to INR 426 crore from INR 499 crore; standalone revenue increased to INR 2,065 crore from INR 1,970 crore, with PBT at INR 225 crore, down from INR 245 crore.

• Achieved strong revenue growth across core business segments, maintaining leadership in precision tubes, metal formed products, and mobility solutions.

• Management expects margin improvement and better performance in H2, citing one-time operational expenses impacting Q2 margins.

• Expanded presence in electric mobility through investments and increased stakes in subsidiaries focused on electric vehicles and related technologies.

• Recognized for innovation with international design awards and the launch of India's first electric tractor and electric truck.

Financial highlights

• Engineering segment Q2 FY25 revenue was INR 1,323 crore (Q2 FY24: INR 1,274 crore), with PBIT at INR 162 crore (down from INR 169 crore).

• Metal formed products Q2 FY25 revenue was INR 404 crore (Q2 FY24: INR 400 crore), PBIT at INR 46 crore (down from INR 53 crore).

• Bicycle/mobility business Q2 FY25 revenue declined to INR 168 crore (Q2 FY24: INR 177 crore), with losses reduced to INR 0.36 crore (Q2 FY24: INR 3 crore).

• CG Power Q2 FY25 revenue was INR 2,413 crore (Q2 FY24: INR 2,002 crore), PBT at INR 294 crore (Q2 FY24: INR 303 crore).

• Shanthi Gears Q2 FY25 revenue was INR 155 crore (Q2 FY24: INR 135 crore), PBT at INR 34 crore (Q2 FY24: INR 30 crore).

Outlook and guidance

• Management expects margin improvement in H2 as one-time operational expenses will not recur.

• Focus on scaling electric mobility business and leveraging new product launches to drive future growth.

• Export momentum is expected to continue, with diversification into South Asia and US markets to offset European softness.

• New product launches in clean mobility (cargo three-wheeler, SCV, tractor) are scheduled in the next few months.

• Bullish long-term outlook for clean mobility and medical devices businesses.