Tube Investments of India (TIINDIA) Q4 99/00 earnings summary

Executive summary

• FY00 sales including processing charges rose 44.7% to Rs 97,993.42 lakh; PBT increased 92.3% to Rs 4,134.24 lakh and PAT rose 55.8% to Rs 3,284.49 lakh.

• Cycles and tubes drove growth, supported by a revival in autos, the Mohali plant acquisition and a tube manufacturing alliance; steel cost increases pressured engineering margins.

Financial highlights

• Gross revenues including other income reached Rs 103,043.91 lakh, up 42.4% YoY; PBDIT was Rs 9,280.53 lakh, PBIT Rs 6,322 lakh and PAT Rs 3,284.49 lakh.

• EPS rose to Rs 13.34 from Rs 8.56; two interim dividends totaled Rs 4 per share, with no final dividend proposed.

• Net worth increased to Rs 36,495.75 lakh; debt rose to Rs 18,073.42 lakh from Rs 13,772.94 lakh.

Outlook and guidance

• Cycles plans to build brands, re-engineer supply chains, upgrade vendors and workforce skills, and improve operations through IT applications.

• Tubes expects growth in turnover, profits and market share through productivity gains, cost reduction and lower logistics costs; some raw material cost increases may be passed to customers.

• Strips targets better profitability through market-share gains, lower internal rejections, TPM and improved service; Roll Form will focus on metal-formed auto components and door frames.

• An IT study found readiness for an ERP initiative in 2000–01; a cross-functional steering committee was formed to advance the strategy.