Chennai, 5th Feb 2016 : The Board of Directors met today and approved the results for the quarter and nine months ended 31st Dec 2015.
Consolidated Q3 Financial Performance
Consolidated net sales increased by 6% to 526 crores from 497 crores, on a quarter on quarter basis. On a sequential basis, sales grew by 2%. The growth came about by way of higher business from the standalone entity.
Consolidated PBT increased by 35% from 39 crores to 53 crores in the current quarter. The profit after tax increased by 39% (i.e. 31 crores compared to 22 crores during corresponding quarter of last year).
Electro minerals division sales registered growth for both sequential and quarter on quarter basis. Sales of Ceramics division had a de growth compared to corresponding quarter of last year, however registered a growth on a sequential basis. Abrasives division had a de-growth sequentially, however registered a growth compared to corresponding quarter of last year.
Profitability of Electro minerals and Abrasives businesses improved, however Ceramics was under pressure compared to corresponding quarter of last year.
Consolidated Segmental Operating Performance
At a consolidated level, the net sales for the quarter were at 229 cr which was 8% higher than the similar period of last year. On a sequential basis, sales were lower by 3%, with Q2 2015-16 sales being at 236 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 6.2% in quarter 3 of last year to 8.6% in current quarter exhibiting a strong comeback in the margins. The margins however was lower compared to Quarter 2 of 2015-16.
At a consolidated level, the Net Sales for current quarter were at 193 cr versus 172 cr last year. The sales were higher due to better performance of standalone India business. Notwithstanding a weak Rouble, Russian operation also delivered a growth. Sequentially also the Net Sales mirrored a similar trend.
Profits grew significantly from 18 cr in last year similar quarter to 29 cr in current quarter. The gain majorly arose due to closing down of loss making operations of TRI & re-structuring of Foskor Zirconia supported by better performance of India business.
At a consolidated level, the net sales for the quarter were at 119 cr versus 124 cr for the corresponding quarter last year. This is a drop of 4%. On a sequential basis, the sales grew by about 5%.
Industrial ceramics business registered better sales in the current quarter.
Profits were at 16 cr in current quarter compared to 14 cr and 19 cr in Quarter 2 of current year and Quarter 3 of last year respectively.
The Board of Directors of the Company at its meeting held on 5th Feb, 2016 has recommended an interim dividend of 1/- per share (100% on face value of 1) to the shareholders of the Company.
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., Parry Sugar industries Ltd, Shanthi Gears Ltd., Tube Investments of India 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, 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 32,000 employees.