Chennai, 31 January 2014: The Board of Directors met today and approved the results for the quarter ended 31st Dec 2013.
Consolidated Q3 financial performance
Consolidated net sales increased by 16.3% to 516 crores from 444 crores, on a quarter on quarter basis. PBT (excluding exceptional income) increased by 50.6% from 13.8 crores in last year corresponding period to20.8 crores in the current quarter.
On a sequential basis, both net sales and PBT dropped by 6.6% and 55.3% respectively.
The increase in sales on quarter on quarter basis was largely due to better performance by Electro minerals division. The division witnessed increase in volumes in silicon carbide business in Russia. South African subsidiary also reported higher volumes. Ceramics segment, however de grew in sales due to postponement of projects in domestic market. On a sequential basis, all the divisions registered lower sales.
Profitability of all divisions were under pressure, except Electro minerals division, which did well on a quarter on quarter basis. The company, by utilizing better cash flow was able to reduce the debt, thus improving both the standalone and consolidated debt equity.
Earnings before interest, depreciation and amortization (EBITDA) recorded an increase of 28.9% (i.e. from 39 crores in corresponding quarter last year to 50.2 crores current quarter).
Consolidated Segmental Operating Performance
Sales of the abrasives business on a consolidated basis registered an increase of 7.8%. Sales for the quarter was 212.9 crores (197.5 crores for the corresponding period of last year). On a sequential basis, there was a drop of 5.6%.
Profit before interest and tax on a consolidated basis recorded a drop of 52.3% i.e. from 18.8 crores to 9 crores, on a quarter on quarter basis. On a sequential basis, there was a drop of 59.4%.
The current sluggish industrial environment had an adverse impact resulting in lower sales.
At a consolidated level, the net sales for Q3 were higher at204.4 crores versus 132.3 crores for the corresponding quarter last year. This resulted in a growth of 54.5%. However on a sequential basis, there was a drop of 5.4%.
Profit before interest and tax on a consolidated basis recorded an increase, from a loss of 7.9 crores to a gain of 15.8 crores, on a quarter on quarter basis. This was largely due to volume gain in both Russian and South African subsidiaries from a lower base in the corresponding quarter.
The ceramics segment recorded a 6.5% drop in sales on a consolidated basis (111.5 crores vs. 119.3 crores last year corresponding period). On a sequential basis, this resulted in a drop of 10%.
Alumina Ceramics business from India, had challenges from market due to project postponements. Refractories sales were lower owing to delayed project orders from user industries. Australian entity registered a growth sequentially but volumes were lower compared to corresponding quarter last year.
Profit before interest and tax of the ceramics business on a consolidated basis recorded a drop from 13.4 crores to 11.6 crores, on a quarter on quarter basis.
The Board of Directors of the Company at its meeting held on January 31, 2014 has recommended an interim dividend of 0.75/- per share (75% on face value of 1) to the shareholders of the Company.
About Murugappa Group
Founded in 1900, the INR 225 Billion Murugappa Group is one of India’s leading business conglomerates. The Group has 28 businesses including eleven 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., Sabero Organics 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, Fertilisers, 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.