- Revenue for the Quarter: INR1,962 crores (Q4 FY24) vs. INR1,663 crores (Q4 FY23).
- Revenue for the Year: INR7,611 crores (FY24) vs. INR7,236 crores (FY23).
- PBT for the Quarter: INR318 crores (Q4 FY24) vs. INR301 crores (Q4 FY23).
- PBT for the Year: INR970 crores (FY24) vs. INR876 crores (FY23).
- ROIC: 54% (FY24) vs. 55% (FY23).
- Free Cash Flow for the Quarter: INR104 crores.
- Free Cash Flow for the Year: INR376 crores (51% of PAT).
- Engineering Business Revenue for the Quarter: INR1,276 crores (Q4 FY24) vs. INR1,044 crores (Q4 FY23).
- Engineering Business PBIT for the Quarter: INR160 crores (Q4 FY24) vs. INR132 crores (Q4 FY23).
- Engineering Business Revenue for the Year: INR4,921 crores (FY24) vs. INR4,562 crores (FY23).
- Engineering Business PBIT for the Year: INR617 crores (FY24) vs. INR549 crores (FY23).
- Metal Formed Products Revenue for the Quarter: INR386 crores (Q4 FY24) vs. INR347 crores (Q4 FY23).
- Metal Formed Products PBIT for the Quarter: INR42 crores (Q4 FY24) vs. INR45 crores (Q4 FY23).
- Metal Formed Products Revenue for the Year: INR1,519 crores (FY24) vs. INR1,424 crores (FY23).
- Metal Formed Products PBIT for the Year: INR187 crores (FY24) vs. INR174 crores (FY23).
- Mobility Business Revenue for the Quarter: INR154 crores (Q4 FY24) vs. INR155 crores (Q4 FY23).
- Mobility Business Loss for the Quarter: INR9 crores (Q4 FY24) vs. INR5 crores (Q4 FY23).
- Mobility Business Revenue for the Year: INR664 crores (FY24) vs. INR800 crores (FY23).
- Mobility Business Loss for the Year: INR18 crores (FY24) vs. INR17 crores (FY23).
- Other Businesses Revenue for the Quarter: INR230 crores (Q4 FY24) vs. INR191 crores (Q4 FY23).
- Other Businesses PBIT for the Quarter: INR17 crores (Q4 FY24) vs. INR11 crores (Q4 FY23).
- Other Businesses Revenue for the Year: INR834 crores (FY24) vs. INR768 crores (FY23).
- Other Businesses PBIT for the Year: INR65 crores (FY24) vs. INR48 crores (FY23).
- Consolidated Revenue for the Quarter: INR4,490 crores (Q4 FY24) vs. INR3,778 crores (Q4 FY23).
- Consolidated PBT for the Quarter: INR401 crores (Q4 FY24) vs. INR403 crores (Q4 FY23).
- Consolidated Revenue for the Year: INR16,890 crores (FY24) vs. INR14,964 crores (FY23).
- Consolidated Profit for the Year: INR1,683 crores (FY24) vs. INR1,592 crores (FY23).
- CG Power Revenue for the Quarter: INR2,192 crores (Q4 FY24) vs. INR1,903 crores (Q4 FY23).
- CG Power PBIT for the Quarter: INR301 crores (Q4 FY24) vs. INR281 crores (Q4 FY23).
- CG Power Revenue for the Year: INR8,046 crores (FY24) vs. INR6,973 crores (FY23).
- CG Power Profit Before Tax for the Year: INR1,158 crores (FY24) vs. INR1,002 crores (FY23).
- Shanthi Gears Revenue for the Quarter: INR154 crores (Q4 FY24) vs. INR123 crores (Q4 FY23).
- Shanthi Gears Profit Before Tax for the Quarter: INR32 crores (Q4 FY24) vs. INR27 crores (Q4 FY23).
- Shanthi Gears Revenue for the Year: INR536 crores (FY24) vs. INR446 crores (FY23).
- Shanthi Gears Profit Before Tax for the Year: INR110 crores (FY24) vs. INR90 crores (FY23).
- Exports Growth: 14% increase during the year.
- Final Dividend Recommended: INR1.50 per share for FY24.
Release Date: May 14, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Tube Investments of India Ltd (BOM:540762, Financial) reported a significant increase in revenue for the quarter, reaching INR1,962 crores compared to INR1,663 crores in the same quarter the previous year.
- The company declared an interim dividend of INR2 per share in February 2024 and has recommended a final dividend of INR1.50 per share for the financial year 2023-24.
- The engineering business showed strong performance with quarterly revenue of INR1,276 crores, up from INR1,044 crores in the corresponding quarter of the previous year.
- Exports grew by 14% during the year, indicating a successful expansion into international markets.
- Subsidiaries CG Power and Shanthi Gears sustained impressive performance, contributing positively to the consolidated results.
Negative Points
- The Mobility business reported a loss before interest and tax of INR9 crores for the quarter, compared to a loss of INR5 crores in the same quarter the previous year.
- The company's ROIC decreased slightly to 54% for the year ended March 31, 2024, from 55% in the previous year.
- There were substantial increases in other expenses during the fourth quarter, including political contributions, which impacted reported margins.
- The metal formed products business saw a decline in PBIT for the quarter, dropping to INR42 crores from INR45 crores in the corresponding quarter last year.
- The EV business, particularly the three-wheeler segment, faced challenges due to changes in government incentive schemes, impacting primary sales in March.
Q & A Highlights
Q: My first question pertains to the clarification on other expenses on standalone.
A: There are a couple of one-time expenses, including political contributions that might have contributed. The one-off quantum would be lower than INR40 crores.
Q: Can you talk about how did exports grow in FY24? What was the contribution in FY24 from exports? And how do you see that scaling up?
A: Exports this quarter was pretty good, with a growth of about 14% for the financial year. We see good leads available going forward, with a couple of OEMs getting approved in the short term, so we are bullish about exports going forward.
Q: How are you deciding which company will enter into which business?
A: CG Power is sticking to businesses in the power, industrial, and electronics areas. For new opportunities, we assess the better long-term home for it. There is no deterministic path; it depends on the opportunity.
Q: Any progress on building capabilities on the electric vehicle side?
A: We are focusing on vehicle integration for different platforms. We currently have about a 200-member strong central R&D team and are further strengthening it. We are also building software capabilities to control the powertrain, including battery, BMS motor, and controller.
Q: Given the growth in two-wheelers and passenger vehicles, why have engineering and metal formed revenues grown only 7% to 8%?
A: We have grown in double digits, but raw material prices are comparatively down compared to the previous year. Our growth in Q4 for two-wheelers is in line with or better than the market.
Q: What are the specific strategies to sustain and potentially accelerate growth in engineering and metal formed parts?
A: Our strategy is to grow in line or better than the domestic market and focus on exports. We are also targeting new applications emerging in the EV industry, focusing on weight reduction and improved efficiency.
Q: Can you share the outlook for FY25 for TII?
A: We have not specifically guided, but we believe growth will continue in the teens.
Q: How do you decide on entering new businesses?
A: Anything related to motors or power will naturally go to CG Power. For unrelated opportunities, we evaluate the best fit when the opportunity arises.
Q: Why was there a sequential decline in EV revenue from December to March?
A: There was a drop in three-wheeler primary sales in March due to the change from FAME to the new scheme, though there was an increase in secondary sales.
Q: What is the overall outlook for the Mobility segment?
A: The cycling market is not growing, and we are focusing on exports and e-bikes. These are the growth areas identified for the Mobility business going forward.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
