Chennai, 29 April 2013: The Board of Directors met today and approved the results for the Quarter and Year ended 31st March 2013.
Consolidated Full year and Q4 Financial performance
Consolidated net sales for the full year, dropped by 1% to 1942 crores from 1969 crores. For the Quarter, sales dropped by 4% on a quarter on quarter basis. However, on a sequential basis, sales grew by 8%.
The drop in sales on quarter on quarter basis and Full year basis were largely due to lower performance by Electro minerals division. The division witnessed drop in volumes in silicon carbide business in Russia and India. South African subsidiary also reported lower sales. Sales also de grew for Abrasives both on quarter on quarter basis and Full year basis. Ceramics business, however, registered growth above 9% for both the periods.
On a sequential basis, all the segments registered topline growth.
Profitability of all businesses was under pressure. However, company managed its working capital well and repaid loans to improve standalone debt equity, which is at its lowest. The company, at consolidated level, spent 220 cr on capital expenditure in the year 2012-13.
PBIT (excluding exceptional income) dropped by 48.0% from 345 crores to 179 crores. Earnings before interest, depreciation and amortization (EBITDA) recorded a drop of 38% (i.e. from 402 crores to 250 crores) without considering exceptional income of last year.
Profit before tax and exceptional income was 152 crores – a drop of 53% over the previous year amount of 320 crores. The profit after tax dropped by 59% (i.e. 90 crores compared to 219 crores last year).
Consolidated Operating Performance
Sales of the abrasives business on a consolidated basis registered a drop of 3% on a full year basis. Sales for the year was 809 crores (830 crores for the corresponding period of last year). Off-take from user industries in India and Russia continued to be muted.
Profit before interest and tax on a consolidated basis recorded a drop of 34% i.e. from 124.8 crores to 82.9 crores.
On a sequential basis, Profit before interest and tax on a consolidated basis were up by 4.5% from 18.8 crores to 19.6 crores.
The second largest business segment viz. Electro Minerals recorded a drop of 8% in sales (669 crores vs. 727 crores). This was largely due to drop in volumes in silicon carbide business in Russia and India. South Africa business also witnessed volume drop.
Profit before interest and tax on a consolidated basis recorded a drop from a profit of 139.9 crores to a profit of 23.7 crores, on a full year basis.
The ceramics segment recorded a 9% increase in sales on a consolidated basis (499 Crores vs. 457 Crores).
Both the high alumina ceramics business and the super refractories businesses performed well during the year. The operations in Australia registered higher growth.
Profit before interest and tax of the ceramics business segment on a consolidated basis dropped by 12% i.e. from 90 crores to 79 crores.
On a sequential basis, Profits were up by 17.8% from 13.4 crores to 15.8 crores.
The Board of Directors of the Company at its meeting held on April 29, 2013 has recommended final dividend of 0.75/- per share to the shareholders of the Company. The Company has earlier paid an interim dividend of 0.5 per share on February 5, 2013.
About the Murugappa Group
Founded in 1900, the 22314 Crores (USD 4.4 billion) Murugappa Group is one of India’s leading business conglomerates. The Group has 28 businesses including ten listed Companies actively 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., Tube Investments of India Ltd., and Wendt (India) Ltd.
Market leaders in served segments including Abrasives, Auto Components, Cycles, Sugar, Farm Inputs, Fertilizers, Plantations, Bio-products and Nutraceuticals, the Group has forged strong alliances with leading international companies like Groupe Chimique Tunisien, Foskor, Mitsui Sumitomo, Morgan Crucible and Sociedad Química y Minera de Chile (SQM). The Group has a wide geographical presence spanning 13 states in India and 5 continents.
Renowned brands like BSA, Hercules, Ballmaster, Ajax, Parry’s, Chola, Gromor and Paramfos are from the Murugappa stable. The organization fosters an environment of professionalism and has a workforce of over 32,000 employees.