Tube Investments’ board gives nod for ₹350-cr fundraising

Tube Investments of India Ltd plans to raise about ₹350 crore during this fiscal to meet the company’s fund requirements. The Murugappa Group company posted a marginal drop in its net profit for the March 2024 quarter and about an 11 per cent increase in FY24 net profit.

The company’s board on Monday approved the longterm borrowing of up to ₹350 crore and recommended a final dividend of ₹1.50 per equity share of ₹1 each (interim dividend of ₹2 per share announced earlier).

For the year quarter ended March 31, 2024, the company’s standalone net profit stood at ₹248 crore compared with ₹250 crore in the year-ago quarter. For the full year of FY24, the company’s net profit grew to ₹735 crore (₹665 crore). Revenue stood at ₹7,611 crore (₹7,236 crore).

Revenue from the engineering business stood at ₹4,921 crore in FY24 (₹4,562 crore). Metal Formed Products’ revenue grew to ₹1,519 crore (₹1424 crore). The mobility division posted a decline in revenue at ₹664 crore (₹800 crore).

While the engineering business posted an increase in profit before interest and tax at ₹617 crore for FY24 (₹549 crore), metal formed products saw its profit before interest and tax increase to ₹187 crore (₹174 crore). However, the mobility business reported a loss before interest and tax of ₹18 crore as against a profit before interest and tax of ₹17 crore. On a consolidated basis, Tube Investments’ profit after tax (from continuing operations) for the March 2024 quarter stood at ₹271 crore (₹311 crore) . The consolidated revenue for the quarter was ₹4,490 crore (₹3,778 crore).