Murugappa group’s Tube Investments yesterday reported a solid 74% (YoY) jump in consolidated net profit for Q4FY23 at Rs.312 crore. This was on a 11% rise in revenue at Rs.3778 crore. This earning included an impairment loss of Rs.29 crore recognised towards write-down of property, plant and equipment of certain cash generating units.
The board approved long-term borrowing of up to ?300 crore by way of term loan or issue of privately-placed, secured, non-convertible debentures, in one or more tranches to meet the company’s fund requirements for FY24.
Company also declared a final dividend of Rs.1.50 per share
The good performance was led by engineering and metal formed products though some but of dragging came in from the bicycle segment and to ward that off, the company is working on reducing costs and improving operational efficiencies through kaizen improvement (Kaizen focuses on eliminating waste, improving productivity, and achieving sustained continual improvement in targeted activities and processes of an organization).
The market has given the performance a big thumbs up, opening almost 1.5% higher at Rs.2678.95, rising further by 5.5% to hit an intraday high at Rs.2792.35.