Chennai, 31 October 2012: The Board of Directors met today and approved the results for the quarter ended 30th Sep 2012.
Consolidated Q2 financial performance
Consolidated net sales grew up by 4% to Rs.522 crores from Rs.502 crores, on a quarter on quarter basis. PBIT (excluding exceptional income) dropped by 41% from Rs.105 crores in last quarter similar period, which was the best performing quarter ever, to Rs.62 crores in the current quarter.
On a sequential basis, net sales grew by 5% and PBIT (excluding exceptional income) dropped by 1%.
Sales growth was driven by the performance of both the Indian and Overseas operations. Margins came under pressure owing to rising input costs, strong dollar and a challenging customer market. The Ceramics business segment recorded growth rate of 14%. The Abrasives business grew at 3% and Electro minerals business de-grew by 3%.
Profitability of all businesses came under pressure.
Earnings before interest, depreciation and amortisation (EBITDA) recorded a drop of 34% (i.e. from Rs.120 crores to Rs.80 crores) without considering exceptional income of last year.
Profit before tax and exceptional income was Rs.55 crores – a drop of 45% over the previous year amount of Rs.99 crores. The profit after tax dropped by 49% (i.e. Rs.34 crores compared to Rs.66 crores last year). On a sequential basis, Profit before tax and exceptional income, dropped by 3% and profit after tax dropped by 6%.
Consolidated Segmental Operating Performance
Sales of the abrasives business on a consolidated basis registered an increase of 3%. Sales for the quarter was Rs.210 crores (Rs.205 crores for the corresponding period of last year). On a sequential basis, that was a growth of 4%.
Profit before interest and tax on a consolidated basis recorded a drop of 25% i.e. from Rs.30.2 crores to Rs.22.6 crores, on a quarter on quarter basis. On a sequential basis, that was an increase of 6%.
The moderate growth trends in India had an adverse impact on the market sentiments, thereby resulting in low off take by the channels.
At a consolidated level, the net sales for Q2 were lower at Rs. 185 crores versus Rs. 190 crores for the corresponding quarter last year. On a sequential basis, this is a growth of 1%.
Profit before interest and tax on a consolidated basis recorded a drop of 65% i.e. from Rs.55 crores to Rs.19.4 crores, on a quarter on quarter basis. On a sequential basis, this is a drop of 3%. This was largely due to adverse product mix. Our Russian subsidiary and India division registered drop in sales and profit on account of market conditions.
The ceramics segment recorded a 14% increase in sales on a consolidated basis (Rs.133 crores vs. Rs.117 crores last year).
Alumina Ceramics, particularly Metalized, did well compared to sequential quarter in registering higher sales.
Profit before interest and tax of the ceramics business segment on a consolidated basis dropped by 8% i.e. from Rs.26.9 crores to Rs.24.7 crores.
Australia entity and Refractory division of India registered drop in profit on account of market conditions.
About Murugappa Group
Founded in 1900, the Rs. 22314 Crores (USD 4.4 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, Bio-products and Nutraceuticals, the Group has forged strong alliances with leading international companies like Groupe Chimique Tunisien, Foskor, Cargill, 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.