Chennai, 30 April 2014:The Board of Directors met today and approved the results for the Quarter and the Year ended 31st March 2014.
Consolidated Full year and Q4 Financial performance
Consolidated net sales for the full year, increased by 7.8% to 2094 crores from
1942 crores. For the Quarter, sales increased by 9.7% on a quarter on quarter basis and 1.8% on a sequential basis.
The increase in sales on Quarter on Quarter basis and Full year basis were largely due to better performance by Electro minerals division. The division witnessed better volumes in silicon carbide business in Russia and Zirconia business in South Africa. Abrasives division also registered growth for both the periods. Ceramics segment, however de grew in sales due to postponement of projects in domestic market during most parts of the year. However, sequentially the division has registered a good growth.
Profitability of Abrasives and Ceramics business came under pressure on a full year basis. However, Electro minerals business’ profit margin improved on the back of higher volumes.
The company managed its working capital well and repaid loans to improve standalone debt equity, which is at its lowest. The company, at consolidated level, spent 94 cr on capital expenditure in the year 2013-14.
PBIT increased by 1.9% from 179 crores to
182 crores.Profit before tax was
154 crores – an increase of 1.6% over the previous year amount of
152 crores. The profit after tax increased by 1.9% (i.e.
92 crores compared to
90 crores last year).
Consolidated Segmental Operating Performance
Abrasives
Sales of the abrasives business on a consolidated basis registered an increase of 6.2% on a full year basis. Sales for the year was 860 crores (
809 crores for the corresponding period of last year).
However, Profit before interest and tax on a consolidated basis recorded a drop of 27.5% i.e. from 83.0 crores to
60.1 crores. The division witnessed an increase in cost push which had an adverse impact on the profits.
Electro Minerals
At a consolidated level, the net sales were higher at 810 crores versus
669 crores for the corresponding year last year. This was a growth of 21.1%.
Profit before interest and tax on a consolidated basis recorded an increase, from 23.7 crores to
80.7 crores, on a full year basis. This was largely due to volume gain in both Russian and South African subsidiaries from a lower base in the corresponding year.
Ceramics
The ceramics segment recorded a 5.7% drop in sales on a full year consolidated basis (470.7 crores vs.
499.1 crores last year). Refractories sales were lower owing to delayed project orders from user industries. Alumina Ceramics business from India, had challenges from market due to project postponements. However in the current quarter the business has delivered good growth both on a quarter on quarter basis and sequential basis. Australian entity registered lower sale.
Profit before interest and tax of the ceramics business on a consolidated basis recorded a drop from 78.9 crores to
58.9 crores, on a full year basis.
Final Dividend
The Board of Directors of the Company at its meeting held on April 30th, 2014 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, 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.
Caution Notice
The public is hereby cautioned that it has been brought to our notice that certain unscrupulous persons/agencies are issuing fake sanction letters to customers and getting their signatures in fake loan agreements purporting to be a loan sanction letter & loan agreement of Murugappa Group and such persons /agencies are attempting to extort money by demanding security deposit/processing fee/insurance fee from the gullible customers for processing the required loan etc. In the aforesaid documents, those unscrupulous persons/agencies are also using the registered logo and name of Murugappa Group against law with intent to gain wrongfully by using the goodwill and reputation of the Group.
Please be informed that Murugappa Group is not a separate legal entity and never requires any customers to pay any advance money or deposit for loan sanctioning. Public is cautioned not to rely or act on any such fraudulent sanction/offer made in the name of Murugappa Group without verifying the authenticity of the contents.
Customers who are interested in availing loans may directly contact any of the nearest branch of Cholamandalam Investment and Finance Company Limited (Cholamandalam) a constituent of our group for further details or get in touch with us at 1800 200 4565 or alternatively email at customercare@chola.murugappa.com, or SMS at 9500000312.
MURUGAPPA GROUP