Tube Investments Announces ₹170-Crore Expansion in Fine Blanking Products Business.

Murugappa Group’s engineering company, Tube Investments of India, has announced a capital investment of ₹170 crore for greenfield and brownfield capacity expansion initiatives.

The company’s board has approved the investment to enhance capabilities and serviceability in the fine blanking business. The plan includes establishing a greenfield facility in western India and expanding the existing manufacturing facility in southern India. The project will be primarily funded through internal accruals and is expected to be completed by FY26.

As the expansion focuses on strengthening in-house capabilities and diversifying the product range, the exact manufacturing capacity is yet to be determined. Tube Investments is a key player in the fine blanking products sector, which falls under its metal-formed products division.

Additionally, the company’s board has declared an interim dividend of ₹2 per share for FY25.

For the quarter ended December 31, 2024, Tube Investments reported a standalone profit after tax of ₹161 crore, up from ₹157.5 crore in the year-ago period. Total revenue from operations increased slightly to ₹1,910 crore from ₹1,898 crore.

The engineering division reported a decline in revenue to ₹1,212 crore from ₹1,229 crore, while the metal-formed products division saw a revenue increase to ₹400 crore from ₹392 crore. The mobility division’s revenue declined to ₹142 crore from ₹147 crore.

Profit before tax (after exceptional items) stood at ₹212 crore, compared to ₹210 crore in the previous year.

On a consolidated basis, Tube Investments reported revenue of ₹4,812 crore for the quarter, up from ₹4,197 crore. Profit before tax (excluding share of profit of an Associate/Joint Venture, exceptional items, and tax) stood at ₹427 crore, compared to ₹395 crore in the previous year.

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