Chennai, 19 April 2014: The Board of Directors of Wendt (India) Limited, a Joint Venture between Wendt GmbH, Germany and Carborundum Universal Ltd of the Murugappa Group have taken on record the audited financial results as reviewed by the Board of Directors for the year ended 31st March 2014.
On a standalone basis, the Company achieved sales of 9449 lacs during the year ended 31st March 2014 which is 6% higher than the last year. Mirroring the industry slowdown and sluggish market conditions, the domestic sales were 7110 lacs, almost at the last year level. The major industry segments which impacted the domestic business were auto, auto component, steel, heavy engineering, cutting tool, ceramics and cutting tools. However, the export sales demonstrated a remarkable growth with the current year sales at 2339 lacs, a growth of 36% over the last year. This was mainly on account of higher exports to countries like Indonesia, Malaysia, US, UK, Germany, UAE, Thailand etc.
Accordingly, the profit after tax for the year has been at 1187 lacs, higher by 17% over the previous year.
On a consolidated basis, the Company’s sales during the current year, was at 10890 lacs, which is 8% higher than the previous year. The profit after tax for the current year has been at 1166 lacs.
The Company’s wholly owned subsidiary in Thailand presented yet another year of creditable performance in spite of turbulent economic situation and subdued industrial activities. During the year, the subsidiary achieved sales of 1398 lacs, 26% growth over previous year. The Profit after tax was 206 lacs almost at the previous year level due to product mix and drop in re-profile business. The cost reduction initiatives, operational efficiency improvements, enhanced product basket and the market expansion undertaken by the subsidiary contributed to this growth in topline despite all odds while retaining bottom line at last year level.
The company’s another wholly owned subsidiary in Sharjah, which had turned around last year, demonstrated a remarkable growth of 42% with sales of 415 lacs in the current year, and profit of 109 lacs, higher by 77% over the previous year. This was as a result of major restructuring, cost control initiatives and focus on high contributory products.
In line with the good performance, the Board of Directors have recommended a final dividend of 15/- per share, (150 % on face value of equity shares of 10/- each) out of the current year’s profits. With the Company having declared and paid an interim dividend of 10/- per share (100% on face value of equity shares of 10/- each) at its Board Meeting held on 22nd January 2014, the total dividend for the Financial Year 2013-14 works out to 25/- per share (250% on the face value of equity shares of 10/- each). The payment of final dividend is subject to the approval of the shareholders in the ensuing Annual General meeting of the company to be held on 24th July 2014.
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.