Murugappa Group firm Tube Investments today reported a 27.9 per cent rise in consolidated net profit at Rs 111.50 crore for the quarter ended December.
The city-based company had posted net profit of Rs 87.14 crore during the corresponding period last fiscal.
For the nine-month period ending December 31, 2015, consolidated net profit grew by 13.1 per cent, from Rs 276.84 crore to Rs 313.36 crore.
Company's total income from operations for the third quarter slipped to Rs 1,508.73 crore from Rs 2,469.29 crore during same period of the previous fiscal.
Consolidated total income from operations for the nine month-period ending December 31 declined to Rs 6,280.45 crore, as against Rs 7,330.21 crore registered in same period earlier.
"The revenue during the quarter was lower compared with corresponding quarter in the previous year partly due to lower pricing of some of our products," The company's MD L Ramkumar said.
"While bicycle business was hit due to slow down in the market place, the engineering and metal formed products divisions improved their profitability by cost control and better product mix," he said.
The bicycle division registered a revenue drop of 9.74 per cent during the quarter ending December 31, 2015 as "market conditions" remained "muted". The revenue fell to Rs 287 crore from Rs 318 crore registered during corresponding period of previous fiscal.
The metal products division registered a 7 per cent rise in revenue at Rs 255 crore as against Rs 238 crore registered earlier.
Shanthi Gears, a subsidiary of Tube Investments engaged in the gears business, registered a profit after tax of Rs 5 crore compared with Rs 4 crore last year.
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In another announcement, the company said its Board has accorded in-principle approval for buy-back of secured redeemable non-convertible debentures not exceeding Rs 650 crore issued by the company on private placement basis in one or more tranches, to reduce the long term debt.
"The Board further authorised a Committee of Directors to finalise on various matters connected with the implementation," it said.
