Analyst Concall
Tube Investments expects exports to lift Oct-Mar earnings
This story was originally published at 13:55 IST on 5 November 2024
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--Tube Investments: Expect second half of the year to be much better
--CONTEXT:Tube Investments mgmt's comments in post-earnings analyst concall
--Tube Investments: Have 83 dealers now, on target to have 150 by FY25-end
--Tube Investments: Had high double-digit growth in exports in Apr-Sept
--Tube Investments: Facing issues on pricing side, margins for railways ops
--Tube Investments: To diversify from auto as PVs,heavy CVs not doing well
--Tube Investments: Share of exports at 16% of sales in Jul-Sept
--Tube Investments: Trying for exports to South Asia, US mkts as Europe slow
--Tube Investments: To launch cargo version of 3-wheeler EV by February
--Tube Investments: Industrial segment plant commissioned, scope for ramp-up
By Apratim Sarkar and Sunil Raghu
MUMBAI – Tube Investments of India Ltd. expects an improvement in its earnings during Oct-Mar, as it is hopeful of increasing both its export orders and its overall business in the December and March quarters, the company's management said in a post-earnings conference call Tuesday. The company saw high double-digit growth in exports in Apr-Sept. For Jul-Sept, the share of exports to the company's revenue was 16%.
The company also expects the railway business to perform better in the coming quarters. As much as 15% of the company's revenue is from the railway division, the management said. While optimistic about growth in this segment, the management tempered its expectations somewhat, saying that in Jul-Sept, this space faced issues on the pricing side, due to which margins were coming under pressure.
In the electric vehicle segment, the other important growth area for the company, it hopes to launch the cargo version of three-wheeler electric vehicles by February. The management said that while it currently has 83 dealers in the electric three-wheeler segment, it was on track to increase this count to 150 by the end of the current financial year.
The company said it was planning to launch an electric farm tractor and a small commercial vehicle in the December quarter. The company recently commissioned an industrial segment plant to ramp up its production.
Talking about the passenger vehicle segment, the management said that the industry performed below expectations due to market issues. The company is now looking to diversify its business into the passenger vehicle business, as the heavy commercial vehicle business is not performing well.
The management said it is looking at exports to South Asia and the US, as the European market has witnessed a slowdown. Discussing the medical device business segment, the management said it has started 44-45 projects till date, and has commissioned a new lab. Growth in the medical device segment in the September quarter was 18-19%, the management said. End
Edited by Avishek Dutta
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