CHENNAI: India’s leading engineering solutions company Tube Investments of India (TII) has announced the capex of Rs 600-700 crore in the current fiscal, except CG Power. The Murugappa Group-owned company had announced during the post-results call in Q4FY26 that the capex for TII standalone will be Rs 350 crore in FY27.
The management during the Q1 concall said, “We are planning for capex of Rs 600-700 in the current fiscal. TII will have capex of Rs 350 crore, which was announced in the last quarter. Shanti Gears will get Rs 100 crore.”
Speaking about the impact on margins due to high inflation of raw materials, the management said that the operating margins are expected to recover fully in the coming quarters. “We are sure that steel prices increase is expected to happen soon and margin neutralisation. Basically, the price hike with a lag of two to three quarters. We are soon full recovery of steel prices hike in the coming quarters.”
TII reported a consolidated net profit of Rs 168.60 crore in Q1 FY27 against Rs 198.90 crore a year ago, a decline of 15% year-on-year.
The company also reported rise in revenue of Rs 6,038.11 crore in Q1 FY27 against Rs 5,170.71 crore during the same period last year.
The Chennai-based company said that it has highest-ever revenue in its electric vehicles, which is Rs 239.20 crore. The management said that it has recorded highest-ever volumes in any quarter so far in small commercial vehicles segment. In Q1, the company reported 64% rise in volume over Q4 volume.
The company also said that the industry is seeing challenges on the front of acquiring cells from China.