Tube Investments of India Ltd has reported a lower net profit of Rs 26.37 crore for the second quarter ended September 30, 2006 compared with Rs 31.38 crore for the corresponding quarter previous year.
Sales were at Rs 456.79 crore (Rs 389.86 crore), a growth of 17 per cent, during the same period last year.
The company pointed out that in the engineering business, production and sale of tubular products was lower than its expectations. During September quarter, engineering business contributed revenue of Rs 211 crore (Rs 180.47 crore) to the company.
Metal forming biz
In the metal forming business, which contributed revenue of Rs 81.49 crore (Rs 66.09 crore), the overall demand was higher during the quarter. The trend in off-take for new models was also encouraging. There has been some initial delay in the execution of company's plans with regard to design and manufacture of auto components through the use of hydro-forming technology, according to a company release.
The focus on bicycle business, which contributed revenue of Rs 134.85 crore (Rs 112.16 crore), continued to be on restructuring the distribution network. The company has planned to have more dedicated outlets for its products under the style "BSA Go".
Due to personal reasons, Mr Sumit Banerjee, Managing Director, has submitted his resignation as Managing Director and Director of the company. His resignation has been accepted by the board of directors at its meeting held on Tuesday. Mr Banerjee is expected to be relieved of his responsibilities by end December, the release says.
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