Carborundum Universal’s Consolidated Q2 Net Sales up 
by 24% Consolidated Operating PAT up by 60%

 

Chennai, 5th November 2011: The Board of Directors met today and approved the results for the quarter ended 30th September 2011.

Consolidated Q2 financial performance

Consolidated net sales grew up by 24% to Rs.505 crores from Rs.408 crores. PBIT (excluding exceptional income) grew up by 47% from Rs.72 crores to Rs.105 crores. Growth was driven by the performance of both the Indian and Overseas operations. The Electrominerals and Ceramics business segments recorded a growth rates in excess of 25%. Abrasives business grew by 15%. Profitability of all business segments witnessed good increase. Overseas subsidiaries recorded strong growth in sales, particularly the entities in Russia and South Africa.

Earnings before interest, depreciation and amortisation (EBITDA) recorded an increase of 42% (i.e. from Rs.85 crores to Rs.120 crores) without considering exceptional income of last year.

Profit before tax and exceptional income was Rs.99 crores – an increase of 51% over the previous year amount of Rs.66 crores. The profit after tax increased by 60% (i.e. Rs.66 crores compared to Rs.41 crores last year)

Consolidated Operating Performance

Abrasives

Sales of the abrasives business on a consolidated basis registered an increase of 15%. Sales for the quarter was Rs.208 crores (Rs.180 crores for the corresponding period of last year). Off-take from user industries in India and Russia continued to be encouraging.

The operations in America, Middle East and Canada continued to be subdued. However, the Chinese subsidiary registered good growth from a low base. Sterling Abrasives, VAW’s Abrasive division and Wendt (India) Limited in Indian abrasive segment, registered higher growth.

Profit before interest and tax on a consolidated basis recorded an increase of 23% i.e. from Rs.25 crores to Rs.30 crores.

Electro Minerals

The second largest business segment viz. Electro Minerals recorded an increase of 25% in sales (Rs.190 crores vs. Rs.153 crores). Growth in sales was made possible by the robust performance of the Indian, Russian and South African operations.

Growth in revenues and also improvement in operating margins led to increase in profit before interest and tax of the electro minerals business on a consolidated basis by 52% i.e. from Rs.36 Crores to Rs.55 Crores.

Ceramics

The ceramics segment recorded a robust 36% increase in sales on a consolidated basis (Rs.117 Crores vs. Rs.86 Crores).

The engineered ceramics business performed well. Sales of metallized cylinders and wear resistant tiles registered strong growth. The growth in sales was driven by exports as a result of higher offtake from Canada, Europe, USA and South American markets.

In Refractories, good order inflow was witnessed for both fired and Monolithic products. Off-take from glass and steel industry was extremely encouraging. The joint ventures in the refractories business registered significant growth on a combined basis.

Favorable product mix and optimum production levels ensured higher contributions. Profit before interest and tax of the ceramics business segment on a consolidated basis increased by 80% i.e. from Rs.15 crores to Rs.27 crores.

Corporate Events

The Company had sub divided the equity shares from the current face value of Rs.2/- each to Re.1/- each with effect from 7th October 2011. The Company has sold its 44.53% shareholding in Laserwords Private Limited for a consideration of Rs.50 Crores in November 2011.

The Company has during the year established a partnership with an Israeli Company for manufacture of Ceramic foam based refractories. The project would be established in CUMI’s SEZ in Kerala.

About the Murugappa Group

Founded in 1900, the Rs. 17051 Crores (USD 3.8 billion) Murugappa Group is one of India’s leading business conglomerates. The Group has 29 businesses including eight 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, Construction, Bio-products and Nutraceuticals, the Group has forged strong joint venture alliances with leading international companies like Groupe Chimique Tunisien, Foskor, Cargill, Mitsui Sumitomo and Morgan Crucible. The Group has a wide geographical presence panning 13 states in India and 5 continents.

Renowned brands like BSA, Hercules, Ballmaster, Carborundum, CUMI Ajax, Parry’s, Gromor and Paramfos are from the Murugappa stable. The organization fosters an environment of professionalism and has a workforce of over 32,000 employees.

For further details please contact

RV Prasad
Group Corporate Communications
Murugappa Group
Tel : 044-25306497
Mobile : 9840120590
Email: prasadrv@corp.murugappa.com

Sridharan Rangarajan
Chief Financial Officer
Carborundum Universal Ltd.
Tel :044 30006132
Email: sridharanr@cumi.murugappa.com

Vinod Kumar / Diya Kinger
Ogilvy PR Worldwide
Mobile: 8939623044/ 9840126179