Tube Investments of India's consolidated net profit rose 28.7% to Rs 79.98 crore in Q3 December 2019 from Rs 62.16 crore in Q3 December 2018. The bottom-line performance was aided by contraction in business and tax expenditures.

Net sales declined 25.2% to Rs 1028.59 crore in Q3 December 2019 from Rs 1375.10 crore in Q3 December 2018, mainly because of de-growth in auto industry.

Revenues from the Cycles and Accessories segment fell 50.43% to Rs 147.57 crore, Engineering revenues degrew by 32.81% to Rs 502.11 crore and Gears and Gear Products earnings contracted by 5.71% to Rs 57.80 crore in Q3 December 2019 over Q3 December 2018. Metal Formed Products business revenues recorded an uptick of 2.94% as the stood at Rs 421.85 crore in Q3 December 2019 as compared to Q3 December 2018.

Profit before tax slipped marginally to Rs 99.07 crore in Q3 December 2019 from Rs 99.39 crore in Q3 December 2018. Total tax expenses fell 48.61% to Rs 17.52 crore in Q3 FY20 from Rs 34.09 crore in Q3 FY19. The company has opted for lower tax rate of 22% and the resultant benefit is being recognised over 3 quarters.

Total expenditures stood at Rs 955.36 crore in Q3 FY20, down by 27.5% from Rs 1317.79 crore in Q3 FY19. In the December quarter, raw material costs stood at Rs 555.83 crore (down 36.3% YoY) and the finished goods purchases aggregated to Rs 30.21 crore (down 42% YoY).

Tube Investments of India, a Murugappa Group company, manufactures fabricated metal products. The company specializes in cycles, steel tubes, strips, chains, and metal formed items.