Tembo Global Industries Expands Manufacturing Facility in Vasai

TEMBO Global Industries, a formidable force in the industrial sector renowned for its expertise in manufacturing and fabricating metal products essential for Pipe Support Systems, Fasteners, Anchors, HVAC, Anti-Vibration Systems, and various industrial, commercial, utility, and OEM installations, is pleased to unveil its outstanding financial performance for the initial quarter of 2024. Additionally, the company actively participates in the trading of metal products associated with its core manufacturing operations and textiles. TEMBO operates as an export-oriented entity, holding prestigious Star Export House certification.

Furthermore, the company has procured a land parcel of 3.32 acres in Vasai for the expansion of its manufacturing facility, aiming to increase capacity by 4-5 times compared to the existing capacity. The expansion project is currently underway and is scheduled to be commissioned during the current financial year. In 2023, the company ventured into the EPC contract business and secured orders from prominent entities such as Kalpataru, L&T, Tata projects, RDC-Maldives, etc., amounting to Rs 300.00 Cr.

Key Highlights:

• Standalone Performance:

• Income from Operations: Recorded at Rs. 13,051.73 Lakhs for the quarter ended March 31, 2024, reflecting a substantial increase compared to the corresponding period last year.

• Profit from Continuing Operations: Stood at Rs. 422.32 Lakhs for the quarter, showcasing remarkable growth and operational efficiency.

• Earnings Per Share (EPS): Basic EPS for the quarter was Rs. 2.73, and diluted EPS was Rs. 2.25, demonstrating a positive trajectory and shareholder value creation.

• Consolidated Performance:

• Income from Operations: Reached Rs. 43,207.85 Lakhs for the year ended March 31, 2024, indicating a significant expansion in revenue streams.

• Profit for the Year: Surged to Rs. 1,420.78 Lakhs, underlining the company's ability to deliver sustained profitability and value generation.

• Earnings Per Share (EPS): Basic EPS for the year was Rs. 12.70, and diluted EPS was Rs. 10.46, reflecting strong financial fundamentals and growth prospects.

Core strengths-

• Promoters of the Company possess the extensive experience in the business

• Highly qualified and experienced directors and KMPs on board.

• Qualified and experienced team including Chartered Accountants, Engineers, Company secretaries, Cost accountants, Graduates and skilled work-force for all the segments.

• Manufacturing of certified engineering products meeting industry standards.

Product capabilities:

Our products are certified and approved by Underwriter’s Laboratory Inc. (USA) and FM Approval (USA) for Fire Sprinkler System Installations. All of our products are manufactured to meet and exceed industry standards set for their design and manufacture. Tembo is a fabrication and installation specialist in ductile pipes, HDB pipes and fittings, and MS plates. Our experienced staffs provide services to meet all the requirements of our customers – they can help with the design, fabrication, and installation of the products they need. We understand that each requirement is different and strive to deliver customized solutions based on our customers’ specifications.

Consolidated and Standalone P&L Statement

Commenting on the performance Mr. Sanjay Patel, Managing Director of Tembo Global Industries Ltd.: 

"At Tembo Global Industries Ltd., we're thrilled to announce our impressive consolidated performance for the fiscal year ending March 31, 2024. Our Income from Operations soared to Rs. 43,207.85 Lakhs, signifying a substantial expansion in revenue streams. Furthermore, our Profit for the Year surged to Rs. 1,420.78 Lakhs, highlighting our unwavering commitment to delivering sustained profitability and value generation. The robust financial fundamentals are evident in our Basic EPS of Rs. 12.70 and diluted EPS of Rs. 10.46, showcasing our strong growth prospects. This remarkable performance underscores our dedication to excellence and positions us for continued success in navigating the dynamic landscape of the engineering sector. We're excited about the opportunities ahead and remain steadfast in our mission to drive growth and innovation while delivering value to our stakeholders." 

Market size of the product/ projects ventured by Tembo.

• Pipe hangers & support system- Market size of more than 20 Billion USD

• ERW Pipes- Market size of more than 25 Billion USD

• Fasteners- Market size of more than 100 Billion USD

• Fuel Farm System Installation- Market size of more than 10 Billion USD

• HVAC installation- Market size of more than 200 Billion USD

• Electrical package installation- Market size of more than 150 Billion USD

• Pipeline installation, testing & commissioning- Market size of more than 150 Billion USD

Newly added capacity during the year and any capacity expansion 

Considering the huge market demand of the engineering products manufacture by the Company, Company has acquired 3.5 acres of land and has planned the expansion in the installed capacity of manufacturing of engineering products by more than 4 to 5 times. In preceding 2 financial years and current financial year, Company has done the majority capex towards completion of the expansion project. The proposed expansion is presently under progress and will be commissioned during current financial year i.e. 2024-25. 

Comments on demerger of textile business

• In order to grow the textile division of Company, we have initiated the exports of yarn in last financial year 2023-24. This will boost the top & the bottom line of textile segment of the Company in current year and in upcoming year. 

• Planning to set-up a textile mill and will start in-house manufacturing of yarn in 3 years down the line. 

• Considering the wide scope available in textile industry, Company also has the future plans to form a separate entity to run the textile business in it.