Nov. 2, 2018 - The Board of Directors of Carborundum Universal approved the results for the Quarter and Six months ended 30th Sep 2018.

Financial performance

Consolidated net sales for the quarter, increased by 12 percent to Rs.651 crores from Rs.579 crores driven by better performance from all segments. At standalone level, net sales grew up by 13 percent.

Consolidated segmental profitability for the Quarter improved for Abrasives and Ceramics businesses.

The Company, at a consolidated level, spent Rs.38 cr on capital expenditure for the first half year. The debt equity ratio on a consolidated basis improved from 0.08 as of June 2018 to 0.06 as of September 2018.

On a consolidated basis, profit after tax and non-controlling interest grew by 17% to Rs.65 cr. Compared to Q1 of current year, the profit after tax and noncontrolling interest growth was 3%.

Consolidated Segmental Operating Performance

Abrasives

Segment Revenue for the quarter at a consolidated level was Rs.283 Cr compared to corresponding period of last year’s revenue of Rs.259 cr resulting in growth of 9%. The growth was led by strong performance from standalone business.

The sequential consolidated revenue growth was 8%.

Profit before interest and tax increased from Rs.36 cr to Rs.38 cr on the back of higher volumes.

Electro Minerals

Segment Revenue at a consolidated level were higher at Rs.245 cr versus Rs.217 cr for Quarter 2 of last year. Volzhsky Abrasives Works, Russian subsidiary, registered a good growth.

Profit before interest and tax decreased from Rs.37 cr to Rs.29 cr due to lower volumes in Foskor Zirconia and flooding of Maniyar Power Plant in Kerala.

Ceramics 

Consolidated revenues increased from Rs.121 cr to Rs.144 cr resulting in growth of 19% on the back of strong performance in standalone business.

Profit before interest and tax increased from Rs.17 cr to Rs.27 cr on the back of higher volumes and product mix.

About the Murugappa Group

Founded in 1900, the INR 329 Billion (32,893 Crores) Murugappa Group is one of India's leading business conglomerates. The Group has 28 businesses including nine listed Companies traded in NSE & BSE. Headquartered in Chennai, the major Companies of the Group include Carborundum Universal Ltd., Cholamandalam Investment and Finance Company Ltd., Cholamandalam MS General Insurance Company Ltd., Coromandel International Ltd., Coromandel Engineering Company Ltd., E.I.D. Parry (India) Ltd., Parry Agro Industries Ltd., Shanthi Gears Ltd., Tube Investments of India Ltd., TI Financial Holdings Ltd and Wendt (India) Ltd.

Market leaders in served segments including Abrasives, Auto Components, Transmission systems, Cycles, Sugar, Farm Inputs, Fertilisers, Plantations, Bio-products and Nutraceuticals, the Group has forged strong alliances with leading international companies such as Groupe Chimique Tunisien, Foskor, Mitsui Sumitomo, Morgan Advanced Materials, Sociedad Química y Minera de Chile (SQM),Yanmar & Co. and Compagnie Des Phosphat De Gafsa (CPG). The Group has a wide geographical presence all over India and spanning 6 continents.

Renowned brands like BSA, Hercules, Montra, Mach City, Ballmaster, Ajax, Parry’s, Chola, Gromor, Shanthi Gears and Paramfos are from the Murugappa stable. The Group fosters an environment of professionalism and has a workforce of over 35,000 employees.