Tube Investments Reports Mixed Q2 Results with Revenue Growth but Lower Profit

Tube Investments of India Limited (TII) has reported mixed results for the second quarter, with revenue growth but a decline in net profit.

Financial Highlights

Revenue increased to Rs 5,522.00 crore, up from Rs 4,920.00 crore in the same quarter last year.
Net profit declined to Rs 187.00 crore, compared to Rs 207.00 crore in the corresponding period of the previous year.
EBITDA rose to Rs 544.00 crore from Rs 490.00 crore year-over-year.
EBITDA margin slightly decreased to 9.86% from 9.96% in the same quarter last year.
Profit before tax (PBT) grew by 11.5% to Rs 250.00 crore, compared to Rs 225.00 crore in the same period last year.
The company maintained a strong Return on Invested Capital (ROIC) of 44% (annualized) for the quarter.
Free cash flow for the quarter was Rs 183.00 crore.

Segment Performance

Engineering

Metric	Q2 Current Year	Q2 Previous Year
Revenue	1,382.00	1,323.00
Profit before interest and tax	164.00	162.00

Metal Formed Products

Metric	Q2 Current Year	Q2 Previous Year
Revenue	408.00	404.00
Profit before interest and tax	44.00	46.00

Mobility

Metric	Q2 Current Year	Q2 Previous Year
Revenue	194.00	168.00
Profit before interest and tax	4.00	-0.36

Others

Metric	Q2 Current Year	Q2 Previous Year
Revenue	227.00	243.00
Profit before interest and tax	18.00	9.00

Consolidated Performance

TII's consolidated revenue for the quarter reached Rs 5,523.00 crore, compared to Rs 4,925.00 crore in the corresponding quarter of the previous year. The profit before share of profit of an Associate/Joint Venture, Exceptional Items and Tax stood at Rs 459.00 crore, up from Rs 426.00 crore in the same period last year.

Subsidiary Performance

CG Power and Industrial Solutions Ltd

Metric	Q2 Current Year	Q2 Previous Year
Consolidated revenue	2,923.00	2,413.00
Profit before tax	388.00	294.00

Shanthi Gears Ltd

Metric	Q2 Current Year	Q2 Previous Year
Revenue	132.00	155.00
Profit before tax	29.00	34.00

Corporate Actions

The Board of Directors has approved a reclassification request from Yanmaar Coromandel Agrisolutions Private Limited to move from Promoter Group category to Public Shareholder category, subject to obtaining No Objection Certificate from stock exchanges.

Equity Share Allotment

On 4th November, TII allotted 10,960 equity shares of Re.1/- each at an exercise price of Rs 1,471.90 per share under its Employee Stock Option Plan 2017. This allotment has increased the total number of outstanding equity shares to 19,35,08,850 and the paid-up equity share capital to Rs 19,35,08,850/-.

Tube Investments of India Limited demonstrates a mixed financial performance across its diverse business segments, with notable revenue growth in its consolidated results but a decline in net profit. The company's focus on maintaining a healthy ROIC and generating substantial free cash flow positions it well for future growth and shareholder value creation.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.35%	-2.90%	-9.20%	-12.37%	-28.00%	+226.46%

Tube Investments of India Limited (TII) has received a formal request from Yanmar Coromandel Agrisolutions Private Ltd. to be reclassified from 'promoter group' to 'public' category shareholder, marking a significant change in the company's shareholding structure.

Reclassification Request Details

TII informed the stock exchanges that it had received a letter from Yanmar Coromandel Agrisolutions Private Ltd., currently classified as a member of the promoter group. The letter seeks reclassification under Regulation 31A of the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements Regulations, 2015.

Current Shareholding Status

According to the disclosure, Yanmar Coromandel Agrisolutions Private Ltd. currently holds no shares in Tube Investments of India Limited. This zero shareholding position is notable as it may influence the reclassification process.

Approval Process

The reclassification request will undergo a multi-step approval process:

Approval from the Board of Directors of Tube Investments of India Limited
Obtaining No-Objection Letters from both the National Stock Exchange of India Limited and BSE Limited

Implications of Reclassification

If approved, this reclassification would alter Yanmar Coromandel's status within TII's shareholding structure, moving it from the promoter category to the public shareholder category. This change could have implications for the company's ownership structure and potentially its governance dynamics.

Next Steps

Tube Investments of India will need to follow the regulatory procedures outlined by SEBI for such reclassifications. Shareholders and market observers will likely keep a close watch on the progress of this request and its potential impact on the company's shareholding pattern.

The company has stated that it will keep the stock exchanges informed of any further developments regarding this reclassification request.