Carborundum Universal’s Consolidated
Full Year Net Sales down by 1% Consolidated
Operating PBT drop by 53%

 

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 rs1942 crores from rs1969 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 rs 220 cr on capital expenditure in the year 2012-13.

PBIT (excluding exceptional income) dropped by 48.0% from rs345 crores to rs179 crores. Earnings before interest, depreciation and amortization (EBITDA) recorded a drop of 38% (i.e. from rs402 crores to rs250 crores) without considering exceptional income of last year.

Profit before tax and exceptional income was rs152 crores – a drop of 53% over the previous year amount of rs320 crores. The profit after tax dropped by 59% (i.e. rs90 crores compared to rs219 crores last year).

Consolidated Operating Performance

Abrasives

Sales of the abrasives business on a consolidated basis registered a drop of 3% on a full year basis. Sales for the year was rs809 crores (rs830 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 rs124.8 crores to rs82.9 crores.

On a sequential basis, Profit before interest and tax on a consolidated basis were up by 4.5% from rs18.8 crores to rs19.6 crores.

Electro Minerals

The second largest business segment viz. Electro Minerals recorded a drop of 8% in sales (rs669 crores vs. rs727 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 rs139.9 crores to a profit of rs23.7 crores, on a full year basis.

Ceramics

The ceramics segment recorded a 9% increase in sales on a consolidated basis (rs499 Crores vs. rs457 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 rs90 crores to rs79 crores.

On a sequential basis, Profits were up by 17.8% from rs13.4 crores to rs15.8 crores.

Corporate Events

The Board of Directors of the Company at its meeting held on April 29, 2013 has recommended final dividend of rs0.75/- per share to the shareholders of the Company. The Company has earlier paid an interim dividend of rs0.5 per share on February 5, 2013.

About the Murugappa Group

Founded in 1900, the rs22314 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.