Tube Investment, a part of the Rs 54,722 crore Murugappa Group, reported has posted a 20 percent growth in consolidated net profit for the quarter ending September with Rs 277 crore profitability.

With the Engineering, Metal Forming Products and Industrial chains division performing well in the domestic market, amid some headwinds from exports, the company posted a consolidated revenue of Rs 3,789 crore during Q2FY23 as against Rs 3,263 crore it registered in the corresponding quarter of the previous year.

Reviewing the Q2FY23 performance, M A M Arunachalam, Chairman, Tube Investments of India said, “The results of the Company reflect the stability of its businesses delivering strong results in the wake of continuing economic challenges viz. high inflation and looming recession globally. Engineering, Metal Forming Products and Industrial chains divisions performed well in the domestic market but faced challenges in its exports. The performance of our subsidiaries CG Power and Industrial Solutions and Shanthi Gears has been consistent and delivered strong performance and profitability across all segments.”

Shanthi Gears, a subsidiary company in the Gears Business, in which the Company holds 70.47 percent stake, registered revenue of Rs 109 crore during the quarter as against Rs 72 crore in the corresponding quarter of the previous year, the company informed in a regulatory filing on Monday. 

The mobility division of the company, which remains a relatively smaller part of the overall pie, witnessed its revenues slipping to Rs 226 crore for Q2 FY23.

M A M Arunachalam who is also known as Arun Murugappan said, “Mobility division had lower profits due to shrinking volumes in the industry.”

The makers of bicycle brands like BSA and Hercules have carved out a three-pronged strategy for its growth in the EV segment with TI-1, forming its existing businesses. TI-2, envisages a venture capital style of functioning. TI-3 is an equity style model based on acquisitions.

“The TI-1 businesses, which already are growth drivers, will also be likely to act as providers of cash flows for investing in TI-2 and TI-3 categories,” the company said in a statement.

Last month, Tube Investment expanded its footprint in its clean mobility venture through acquisition of a controlling stake in IPL Tech Electric Private a manufacturer of electric heavy commercial vehicles through its subsidiary TI Clean Mobility. The quarter also witnessed the commercial launch of the electric three-wheeler Montra in September 2022.