Chennai, 18 April 2013: 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 2013.
On a standalone basis, the Company achieved sales of 8895 lacs during the year ended 31st March 2013 which is 11% lower than the last year. Mirroring the industry slowdown and deteriorated market conditions, the domestic sales were lower by 11% at 7176 lacs over the previous year. The major industry segments which impacted the domestic business were auto, auto component, cutting tool, refractory, ceramics and steel. The export sales was also hard hit by the stalling global recovery and continued volatility and could clock a sales of 1719 lacs during the current year, 12% lower over the last year.
Accordingly, the profit after tax for the year has been at 1012 lacs, lower by 42% over the previous year.
On a consolidated basis, the Company’s sales were at 10059 lacs during the current year which is 9% lower than the previous year. The profit after tax for the current year has been at 1286 lacs, 34% lower over the previous year.
During the last quarter of the year, Wendt India’s R&D Centre got DSIR recognition from the Ministry of Science and Technology, Government of India. This will give the company a major impetus not only to pursue development of new products for itself, but also provide opportunities for collaborative working with external institutes and research laboratories.
Wendt India’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 1108 lacs, 8% growth over previous year. The Profit after tax was 219 lacs, 23% growth over previous year. The cost reduction initiatives, operational efficiency improvements, enhanced product basket and the market expansion undertaken by the subsidiary contributed to this growth despite all odds. Another subsidiary of Wendt India in Sharjah had a turn around and made a first time profit of 62 lacs on sales of 293 lacs. This was as a result of major restructuring, cost control measures and focus on high contributory products.
Despite having a tough year, impacting the profits and the need of the company for conserving cash for the capital expenditure, which as a philosophy been addressed through its internal accruals, the Board of Directors have recommended a dividend of 15/- per share, (150% on face value of equity shares of 10/- each) out of the current year’s profits.
About Murugappa Group
Founded in 1900, the 22314 Crores (USD 4.4 billion) Murugappa Group is one of India’s leading business conglomerates. The Group has 28 businesses including ten 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, 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.