Tube Investments declares 1:1 bonus

With Tube Investments of India Ltd (TII) posting an impressive 80 per cent rise in its net profit in 2003-04, its board has recommended a bonus issue of 1:1 and 100 per cent dividend pay-out.

The company's turnover in 2003-04 rose by 6 per cent to Rs 1257.34 crore (Rs 1197.13 crore). However a non-recurring income of Rs 24 crore from renunciation of rights in Cholamandalam Insurance in favour of Mitsui Sumitomo, though partly eroded by a non-recurring expenditure of Rs 14 crore provided for a superannuation fund, helped to boost the bottomline.

The net profit climbed to Rs 82.49 crore (Rs 49.89 crore). It was a milestone year in terms of profit before tax for the company, which crossed the Rs 100 crore at Rs 105.3 crore (Rs 62.45 crore).

Of its three business units (namely, TI Cycles, Tube Products and TI Metal Forming), the company saw improved efficiency with higher machine productivity in its engineering business. The cycle division was helped with better supply chain management. The doorframe line also saw increased volumes in OE sales.