Chennai, 30 July 2013: The Board of Directors met today and approved the results for the quarter ended 30th June 2013.
Consolidated Q1 financial performance
Consolidated net sales increase by 5% to 501 crores from 478 crores, on a sequential basis. PBIT (excluding exceptional income) increased by 62% from 33 crores in sequential quarter to 54 crores in the current quarter. On a quarter on quarter basis, sales grew by 1% and PBIT dropped by 15%.
The increase in sales on sequential basis and quarter on quarter basis was largely due to better performance by Electro minerals division. The division witnessed increase in volumes in silicon carbide business in Russia and Aluminas business in India. South African subsidiary reported higher volumes compared to the earlier quarter. Sales also grew for Abrasives segment for both the periods. Ceramic sales however de grew for the same periods.
Profitability of Electro minerals business improved both on a sequential and quarter on quarter basis. Profitability of Abrasives and Ceramics business improved on a sequential basis but dropped on a quarter on quarter basis. The company improved standalone debt equity, which is at its lowest.
Earnings before interest, depreciation and amortization (EBITDA) recorded an increase of 39% (i.e. from 53 crores in sequential quarter to 74 crores in current quarter) without considering exceptional income of last year. On a quarter on quarter basis, that was a decrease of 6%.
Profit before tax and exceptional income was 47 crores – a gain of 79% over the sequential quarter amount of 26 crores. The profit after tax increased from 12 crores to 28 crores. On a quarter on quarter basis, Profit before tax and exceptional income, dropped by 17% and profit after tax dropped by 23%.
Consolidated Segmental Operating Performance
Sales of the abrasives business on a consolidated basis registered a increase of 3% in a sequential basis. Sales for the quarter was 206 crores (200 crores for the sequential quarter). On a quarter on quarter basis, this was an increase of 2%.
Profit before interest and tax on a consolidated basis recorded an increase of 3% i.e. from 19.6 crores to 20.3 crores, on a sequential basis. On a quarter on quarter basis, this was a drop of 5%.
The broader business performance of the Abrasives’ user industries continues to be moderate. The manufacturing industries continued to have sub optimum levels of production.
At a consolidated level, the net sales for Q1 were higher at 195 crores versus 167 crores for the sequential quarter. This is a growth of 16%. On a quarter on quarter basis, this was an increase of 6%.
Profit before interest and tax on a consolidated basis recorded a gain from a loss of 7.1 crores to a profit of 25.9 crores, on a sequential basis. On a quarter on quarter basis, the gain was 29%. This was largely due to higher volumes in Silicon carbide business in Russia, lower losses in South African subsidiary and increased Aluminas business in India.
The ceramics segment recorded a 13% drop in sales on a sequential basis (111 crores vs. 128 crores last year). On a quarter on quarter basis, this was a drop of 6%.
Alumina Ceramics business from India, had challenges from market due to project postponements. Refractories sales were lower owing to delayed project orders from user industries. Australian entity registered a lower sales growth.
Profit before interest and tax of the ceramics business on a consolidated basis recorded a drop of 3% from 15.8 crores to 15.3 crores, on a sequential basis. On a quarter on quarter basis, the drop was 38%.
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, 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.