Tube Investments of India reports 17% volume growth driven by record e-mobility sales and expanding healthcare division, as the company navigates margin pressures and explores new markets.
Tube Investments of India said its engineering arm delivered 17% volume growth in the June quarter, helped by double-digit export gains, even as higher steel costs squeezed margins. The company’s management said the increase in input prices should be passed through with a lag of two to three quarters, which it expects to restore profitability and support double-digit EBIT growth in the coming periods.
The strongest momentum came from e-mobility, where quarterly turnover reached a record INR240 crores. Jalaj Gupta, managing director of TICMPL, said three-wheeler volumes jumped 64% from the previous quarter, with traction across all four of the business’s product lines. Tube Investments also said its EV operations are likely to have moved past peak quarterly losses, with one unit expected to break even this year and two more next year.
In healthcare and speciality manufacturing, the company said its medical devices business grew almost 20% in the quarter and that a recent IV cannula purchase should begin contributing revenue from August or September. Mukesh Ahuja, managing director, reiterated a 20% annual revenue growth goal for the division. The company also said its 200 kl CDMO reactor capacity has been commissioned, with validation batches under way, although customer inspections and regulatory filings are not expected until next financial year.
Elsewhere, the cycles business posted solid growth and wider margins, and management is targeting an additional two percentage points of margin improvement over the full year. Tube Investments said it had also won orders in the heavy commercial vehicle segment, including work at ports and a deal with Wonder Cement, while starting three-wheeler exports to Nepal and exploring Sri Lanka and African markets. The company said it generated free cash flow of INR174 crores in the quarter and continued to post a return on capital employed of 41%.
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