NewsCorporate ActionsTinna Rubber Invests $204,815 in South African Joint Venture, Reports Strong Q1 ResultsTinna Rubber Invests $204,815 in South African Joint Venture, Reports Strong Q1 Results
Tinna Rubber invested $204,815 in its South African joint venture, Mbodla Investments, maintaining a 49% stake. The company reported Q1 FY2025-26 results with revenue of Rs. 130.27 crore and net profit of Rs. 11.74 crore. The board approved investments up to Rs. 5 crore in Mbodla. Tinna recently raised Rs. 78.70 crore through a QIP for expansion and debt repayment.
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Tinna Rubber and Infrastructure Limited , a leading end-of-life tyre (ELT) recycling company in India, has made a strategic move to strengthen its international presence by investing in its South African joint venture. The company has also released its first quarter financial results, showing robust performance.
South African Joint Venture Investment
Tinna Rubber has invested US$ 204,815 (approximately Rs. 1.80 crore) in Mbodla Investments (Pty) Ltd, its joint venture in South Africa. This investment will acquire 35,86,310 ordinary shares at 1 Rand each. Despite this additional investment, Tinna Rubber's ownership stake in the joint venture remains unchanged at 49%.
Mbodla Investments, incorporated in February 2015, operates in the recycling of used motor vehicle tyres. The joint venture focuses on expanding and managing tyre recycling operations in South Africa, including the manufacturing and export of used tyres, crumb rubber, and allied products.
It's worth noting that Mbodla Investments has reported nil turnover for the last three years. This investment is classified as a related party transaction due to Mbodla's status as a joint venture of Tinna Rubber.
Q1 Financial Highlights
Tinna Rubber has also released its unaudited consolidated financial results for the quarter ended June 30:
| Metric | Q1 FY2025-26 | Q1 FY2024-25 |
|---|---|---|
| Revenue from Operations | 130.27 | 136.01 |
| Net Profit | 11.74 | 16.39 |
| Basic EPS | 6.84 | 9.57 |
| Other Income | 0.36 | - |
| Total Expenses | 115.37 | 115.94 |
All figures in Rs. crore, except EPS in Rs.
Company's Strategic Moves
In addition to the South African investment, Tinna Rubber has made other strategic decisions:
The company's Board of Directors has approved investments not exceeding Rs. 5 crore, including existing investments, in Mbodla Investments (Pty) Ltd.
Tinna Rubber recently completed a Qualified Institutional Placement (QIP), raising approximately Rs. 78.70 crore by issuing 8,86,257 equity shares at Rs. 888 per share.
The funds raised from the QIP are earmarked for expansion and upgradation of manufacturing facilities, repayment of certain borrowings, and general corporate purposes.
These strategic moves, coupled with the company's steady financial performance, indicate Tinna Rubber's focus on strengthening its market position and expanding its global footprint in the tyre recycling industry.
The company's 38th Annual General Meeting is scheduled to be held on Friday, September 12, 2025, through video conferencing or other audio-visual means.
As Tinna Rubber continues to invest in its international operations and maintain a solid financial foundation, it remains well-positioned in the growing market for sustainable tyre recycling solutions.
Historical Stock Returns for Tinna Rubber and Infrastructure
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.52% | -5.14% | -12.14% | -21.50% | -21.50% | -21.50% |
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