More Stories

Informist, Thursday, May 15, 2025

By Arya S. Biju

MUMBAI – Tube Investments of India Ltd.'s consolidated net profit for the March quarter fell to a quarter of what the company had reported in the same period last year as its expenses rose higher than the increase in revenue. Higher raw material cost, other expenses, and a rise in tax expense weighed on the company's earnings for the latest quarter. The on-year fall in the bottom line for the third consecutive quarter was despite the company reporting its highest revenue since the December quarter of 2016, data available with Informist showed.

The engineering and manufacturing company reported a consolidated net profit of INR 465.3 million for the quarter, down nearly 76% on year. This was the highest on-year fall in net profit of the company in at least seven years. Its consolidated revenue for the quarter rose nearly 15% on year to INR 51.50 billion. This marked the 18th consecutive quarter of revenue growth for the company. 

Shares of Tube Investments, which were trading higher before the announcement of the March quarter earnings, fell over 2% after the announcement and were at INR 2,914.30 on the National Stock Exchange at 1509 IST. 

The company's total expenses for the quarter rose over 19% on year to INR 49.67 billion, led by a near 17% on-year jump in raw material costs to INR 32.24 billion and a 15% rise in other expenses to INR 8.05 billion. The raw material cost accounted for 65% of the company's total expense in the reporting quarter, while other expenses accounted for 16%. Employee benefit expenses for the quarter rose over 17% on year to INR 4.77 billion and costs related to purchases of stock-in-trade rose nearly 15% on year to INR 2.33 billion. 
 

On a standalone basis, the company's net profit more than tripled on year to INR 8.14 billion on revenues of INR 19.57 billion. Brokerge Motilal Oswal had expected the company to report a standalone net profit of INR 2.55 billion for the quarter on revenues of INR 19.96 billion. 

For the financial year ended March, the company reported a consolidated net profit of INR 6.74 billion, down 44% on year. Its consolidated revenue for the quarter was INR 194.65 billion, up over 15% on year. Tube Investment's free cash flow for the March quarter was INR 2.25 billion and the cumulative free cash flow for FY25 was INR 3.97 billion. 

Revenue from the industrial systems segment, which accounted for 34% of the total revenue, rose 28% on year to INR 17.51 billion for the March quarter. Revenue from the engineering segment, however, fell nearly 4% on year to INR 12.29 billion. The power systems segment's consolidated revenue for the quarter rose 21% on year to INR 9.93 billion.

Revenue from the electric vehicles segment more than doubled on year to INR 1.51 billion. Its revenue from metal-formed products segment rose 4% on year to INR 4.03 billion and revenue from the mobility segment rose nearly 18% on year to INR 1.81 billion. Along with the March quarter earnings, the company announced a final dividend of INR 1.50 per share for 2024-25 (Apr-Mar). Its board also approved a long-term borrowing of up to INR 3 billion through loans and non-convertible debentures, in one or more tranches to meet its fund requirements for FY26, Tube Investments said.  End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Akul Nishant Akhoury

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000 

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.