Murugappa group’s engineering company Tube Investments of India Ltd. (TII) plans to enter new business segments such as medical devices and instruments, electronic products and components, and energy-related products.
The company’s board on Thursday gave its nod, subject to shareholders’ approval, for the insertion of three new sub-clauses in the memorandum of association (MoA) to enable the company to engage in the businesses, according to a statement.
Last year, the company announced its entry into the electric mobility segment, where it seeks to focus on electric three-wheelers. It also acquired Hyderabad-based electric tractor start-up Cellestial E-Mobility in January this year.
The board also approved the termination of the Global Depository Receipts (GDR) programme of the company, considering the small number of unlisted GDRs outstanding (constituting about 0.001% of the equity share capital). The Bank of New York Mellon is the depository for the GDRs.
The board also approved fresh long-term borrowing up to ₹500 crore to meet funding needs during FY23.
The board gave its nod for conversion of the remaining 8,52,33,645 share warrants into an equal number of equity shares of CG Power and Industrial Solutions Ltd. by paying the balance 75% subscription money on or before May 26, 2022.
TII said profit after tax rose to ₹136 crore for the quarter ended March 31 compared with ₹129 crore a year earlier. Profit before exceptional items stood at ₹173 crore (₹162 crore). Revenue from operations grew to ₹1,629 crore from ₹1,396 crore.
“The results for the quarter show a steady performance even in the wake of challenges on account of supply constraints, lower domestic demand, increase in fuel and commodity price fuelling inflation, part of which was also as a result of the war in Ukraine. Exports have, however, consistently delivered good growth in the tubes and industrial chains business,” said M.A.M. Arunachalam, chairman, Tube Investments of India.
For the full year FY22, net profit grew to ₹475 crore from ₹273 crore in the previous year, which was impacted by the second COVID wave. Revenue from operations was higher at ₹5,987 crore as against ₹4,026 crore.
The board also recommended a final dividend of ₹1.50 per share for FY22.
