Carborundum Universal’s Consolidated Full Year
Operating PBT upby 6.2%
Chennai, 1st May, 2015: The Board of Directors met today and approved the results for the Quarter and the Year ended 31st March 2015.
Consolidated Full year and Q4 Financial Performance
Consolidated net sales for the full year, decreased by3.6% to 2019 crores from 2094 crores. For the quarter, sales decreased by 11.4% on a quarter on quarter basis and 6.4% on a sequential basis.
The decreasein sales on full year basis were largely due to sales drop witnessed in electro mineral division on the back of adverse impact on translation of Rouble. Abrasives division had a flat sales. Ceramics segment, however grew due to commencement of the projects postponed in 13-14.
On a full year basis, Profitability of all the divisions business improved from last years’ levels.
The company, at consolidated level, spent 80cr on capital expenditure in the year 2014-15.The company managed its working capital well and repaid loans to improve debt equity. The Company’s debt equity ratio continues to be healthy and is the lowest in the last decadeat 0.1 on a standalone basis and 0.31 on a consolidated basis.
During the quarter, the Company in standalone books hadan exceptional profit from sales of land and building to the extent of 86.9 cr. The entire money was used to repay the loans at consolidated level. The Company also had exceptional loss owing to restructuring of South African, Chinese entities and impairment provisions, resulting in a net exceptional income of 56.5 cr.
PBT (excluding exceptional income) increased by 6.2% from 154 crores to 164 crores. PBT (including exceptional income) was 220 crores –an increase of42.8% over the previous year amount of 154 crores. The profit after tax increased by 44.9% (i.e. 133 crores compared to 92 crores last year).
Consolidated Segmental Operating Performance
Sales of the abrasives business on a consolidated basis was near flat on a full year basis at 859 cr (last year’s sales were860 cr). VolzhskyAbrasivesWorks recorded a drop in sales which was further accentuated on translation. Chinese entity also had a lower sales. Indian entities including Wendt, Sterling Abrasives and CUMI Abrasives however registered a good growth.
Consequently, Profit before interest and tax on a consolidated basis increasedfrom 60 cr to 62 cr due to better performance from Indian entities.
At a consolidated level, the net sales had a de growth from 810 cr to 727 cr. The drop majorly came from the Rouble translation loss and shrinking of South African operations. During the year, the Company took a decision to wind down the fusion plant operations of Thukela Refractory Isithebe Pty Ltd and shift the plant to India. The bubble zirconia sales in Foskor Zirconia Limited were impacted owing to continued production related challenges. Hence, the company has decided to shift the Bubble Zirconia facility from South Africa to Edapally, India and integrate the operation with India Electro mineral business.
Profit before interest and tax on a consolidated basis, however dropped only marginally from 81 cr to 79 cr resulting in PBIT margin improvement from 10% to 10.9% on a full year basis. This was largely owing to better performance in Volzhsky Abrasives works due to higher exports on the back of a weak Rouble.
The ceramics segment recorded a 2% increase in sales on a full year consolidated basis (482 crores vs. 471 crores last year).
Industrial Ceramics division was able to execute good orders for Wear Ceramics with resumptions of some of the postponed projects from 13-14, especially in Power sector. The business in Lined Equipments’ from Australia market continued to be good. Off take of Metallized cylinders also grew. The growth in Industrial ceramics were offset by lower sales in refractories business in India. Joint venture entities MMTCL and Ciria registered good sales.
Profit before interest and tax of the ceramics business on a consolidated basis increased by 20% from 59 cr to 71 cr due to cost leverage obtained from improvement in plant utilization on higher sales.
The Board of Directors of the Company at its meeting held on 1st May, 2015 has recommended a final dividend of 0.5/- per share (50% on face value of Re.1) to the shareholders of the Company. The Company had earlier paid an interim dividend of 0.75/- per share.
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.