Carborundum Universal’s Consolidated
Q3 Net Sales up by 21%

Consolidated Operating PAT up by 29%

 

Chennai, 4th February 2012 : The Board of Directors met today and approved the results for the quarter ended 31st December 2011.

 

Consolidated Q3 financial performance

Consolidated net sales grew up by 21% to Rs.494 crores from Rs.408 crores. PBIT (excluding exceptional income) grew up by 24.6% from Rs.62 crores to Rs.78 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 15% and 40% respectively. Abrasives business grew by 13%. Profitability of all business segments witnessed good increase. Overseas subsidiaries recorded strong growth in sales, particularly the entities in Russia and Australia.

Earnings before interest, depreciation and amortisation (EBITDA) recorded an increase of 22% (i.e. from Rs.76 crores to Rs.92 crores) without considering exceptional income of last year.

Profit before tax and exceptional income was Rs.71 crores – an increase of 29% over the previous year amount of Rs.55 crores. The profit after tax increased by 29% (i.e. Rs.47 crores compared to Rs.37 crores last year).

Consolidated Operating Performance

Abrasives
Sales of the abrasives business on a consolidated basis registered an increase of 13%. Sales for the quarter was Rs.209 crores (Rs.185 crores for the corresponding period of last year). Off-take from user industries in India and Russia continued to be encouraging.

Profit before interest and tax on a consolidated basis recorded an increase of 6% i.e. from Rs.28.6 crores to Rs.30.2 crores.

Electro Minerals 
The second largest business segment viz. Electro Minerals recorded an increase of 17% in sales (Rs.170 crores vs. Rs.145 crores). Growth in sales was made possible by the robust performance of the Russian and Indian 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 36% i.e. from Rs.21.9 Crores to Rs.29.7 Crores.

Ceramics 
The ceramics segment recorded a robust 42% increase in sales on a consolidated basis (Rs.121 Crores vs. Rs.85 Crores).

Alumina Ceramics, particularly Metalized, did well in terms of registering higher sales in all product segments. Refractory business ran at full capacity to service the surge in orders. The operations in Australia registered higher growth.

Profit before interest and tax of the ceramics business segment on a consolidated basis increased by 61% i.e. from Rs.14 crores to Rs.23 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 Board of Directors of the Company at its meeting held on February 4, 2012 has approved interim dividend of Re.1/- per share (100%) to the shareholders of the Company.

The consolidated unaudited financial results are enclosed.

About 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 28 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 spanning 13 states in India and 5 continents.

Renowned brands like BSA, Hercules, Ballmaster, 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 :

R.V. Prasad
External Communications Lead
Phone number :
9840120590
Email : prasadrv@corp.murugappa.com

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

Vinod Kumar / Diya Kinger
Phone number : 98401 26179 / 8939623044
Email : Vinod.kumar@ogilvy.com / diya.kinger@ogilvy.com