The engineering company Tube Investments of India Ltd. (TII) of Murugappa Group plans to enter new business segments such as medical devices and instruments, electronic products and components, and energy-related products.
The company’s board of directors on Thursday approved the inclusion of three new sub-clauses in the Memorandum of Association (MoA) to allow the company to participate in the deals, subject to shareholder approval, it said in a statement.
Last year, the company announced its entry into the electric mobility segment, where it intends to focus on electric tricycles. The company also acquired Hyderabad-based electric tractor startup Cellestial E-Mobility in January this year.
The Board also approved the termination of the Company’s Global Depository Receipts (GDR) program given the small number of unlisted GDRs outstanding (representing approximately 0.001% of share capital). The Bank of New York Mellon is the custodian bank for the GDRs.
The Board also approved a new long-term borrowing of up to ₹500 crore to meet FY23 funding needs.
The Board voted to convert the remaining 8,52,33,645 stock warrants into an equal number of shares in CG Power and Industrial Solutions Ltd. by paying the balance of 75% of the subscription money on or before May 26, 2022.
TII said profit after tax rose to £1.36 billion for the quarter ended March 31, compared with £1.29 billion a year earlier. Profit before exceptional items was ₹173 crore (₹162 crore). Operating income increased from ₹1,396 billion to ₹1,629 billion.
“Results for the quarter show consistent performance even amid the challenges of supply constraints, lower domestic demand, rising fuel and commodity prices fueling inflation, also in part due to the war in Ukraine. However, exports have consistently delivered good growth in tube and industrial chain business,” said MAM Arunachalam, Chairman of Tube Investments of India.
For full year FY22, net income increased to ₹4.75 billion compared to ₹2.73 billion in the previous year, which was impacted by the second wave of COVID-19. Operating income was ₹5,987 crore, higher than ₹4,026 crore.
The board also recommended a final dividend of £1.50 per share for FY22.