Analyst Concall
Tube Invest targets $1 bln in sales from EV ops by 2029
This story was originally published at 13:40 IST on 4 February 2025
Register to read our real-time news.Informist, Tuesday, Feb. 4, 2025
By Akshita Kumar and Anjana Therese Antony
MUMBAI – Engineering and manufacturing company Tube Investments of India Ltd. aims to achieve $1 billion in revenue from its electric vehicle business by 2029. The company plans capital expenditure of around INR 3 billion for this segment next year, the company's management said in a post-earnings conference call with analysts. The Murugappa Group company is also exploring export opportunities for its electric vehicle business.
The company's three-wheeler electric business currently has 88 operational dealers and it plans to have more than 100 dealers for this segment by the end of 2024-25 (Apr-Mar). For its small commercial vehicle division, the company has issued letters of intent to dealers across 15 cities and expects them to begin operations by the end of FY25. The company is also planning to have 10 dealers for its tractor business by the end of FY25, the management said.
The company's exports are largely driven by the engineering vertical, and it sees opportunities in other parts of the segment such as the bicycle business, the management said. On Monday, the company reported a consolidated net profit of INR 1.94 billion for the December quarter, down 64% on year due to a high base in the year-ago quarter. Consolidated revenue for the quarter as INR 48.12 billion, up 15% on year.
When asked which segment the company is most optimistic about in terms of size and profitability, the management said it is fairly positive about all the businesses with different growth rates. The company said that export markets are growing and will continue to grow for India. About 35-40% of the company's exports are to the US, and half of its relationships are with original equipment manufacturers.
The management said that during the Bharat Mobility Expo they received a positive response from all stakeholders, customers, dealers, and even competitors. They also announced plans to start production of small commercial vehicles and super cargos by Jan-Mar. The commercial sales will begin from April, the management said.
The company's domestic performance was muted during the December quarter due to the rise in metal prices. When asked about the China technology centre, the management said that it was too early to comment. They said that the company does not expect the auto chain market to become obsolete in the near future. "For chain replacement, there is a huge population of vehicles available in the aftermarket area, so we don't think at all the chain market is going to get obsolete," the management said.
At 1338 IST, shares of the company were at INR 3,096.80 on the National Stock Exchange, up 1.7% from Monday. The stock has fallen almost 36% from its record high of INR 4,810.8 hit on Oct. 23, 2024. End
US$1 = INR 87.10
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Subhojit Sarkar
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