Chennai, 31st October 2015 : The Board of Directors met today and approved the results for the quarter and six months ended 30th Sep 2015.
Consolidated Q2 financial performance
Consolidated net sales dropped by 5% to 514 crores from 541 crores, on a quarter on quarter basis. PBT increased by 122% from 30 crores to 66 crores in the current quarter. On a sequential basis, sales grew by 5% and PBT increased by 15%.
The profit after tax increased by 128% (i.e. 39 crores compared to 17 crores during corresponding quarter of last year).
The drop in sales on quarter on quarter basis was largely due to nil sales in Thukela Refractories as business is being re-located and adverse movement in Rouble currency. Sequentially sales however became better owing to improvement in volumes in standalone business.
Abrasives division sales registered growth for both sequential and quarter on quarter basis. Sales in Electro minerals mirrored the movement in Rouble currency. Sales of Ceramics division had a de growth compared to corresponding quarter of last year, however had a marginal growth on a sequential basis.
Profitability of Electro minerals and Abrasives businesses improved, however Ceramics was under pressure.
The Company’s debt equity ratio continues to be healthy at 0.11 on a standalone basis and 0.30 on a consolidated basis.
Consolidated Segmental Operating Performance
At a consolidated level, the net sales for the quarter were at 236 cr which was 2% higher than the similar period of last year. On a sequential basis, sales were higher by 11% with Q1 2015-16 sales at 212 cr. The growth was led by strong performance from CUMI standalone business.
Profit before interest and tax on a consolidated basis recorded an increase from 8.3% in quarter 2 of last year and from 8.9% in quarter 1 of current year to 10.8% in current quarter exhibiting a strong comeback in the margins.
At a consolidated level, the net sales for current quarter were at 178 cr versus 197 cr of the similar period in last year. The sales were lower owing to lower INR topline on account of weak rouble and closing of Thukela Refractories Isithebe operations. Standalone business grew by 19 cr on the back of a strong aluminas business.
Sequentially sales at a consolidated level remained flat.
However, profits grew significantly from 3.3 cr in quarter 2 of last year and from 32 cr in Quarter 1 of this year to 39 cr in current quarter. The gain majorly arose due to closing down of loss making operations of TRI &Foskor and better performance of VAW.
At a consolidated level, the net sales for the quarter were at 113cr versus 125 cr for the corresponding quarter of last year. This is a drop of 9%. On a sequential basis, the sales grew marginally by about 1%.
Industrial ceramics and Super Refractories business registered lower sales owing to weak capex environment and postponement of projects from user industries.
Profits of Ceramics division were lower by 5 cr compared to corresponding quarter of last year, which majorly came from standalone due to lower volumes and price. Joint venture companies also had lower profit to report.
About Murugappa Group
Founded in 1900, the INR 269 Billion 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., 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 6 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.