Chennai, 7 August 2012: The Board of Directors met today and approved the results for the quarter ended 30th June 2012.

Consolidated Q1 financial performance

Consolidated net sales grew up by 6% to Rs.498 crores from Rs.469 crores, on a quarter on quarter basis. PBIT (excluding exceptional income) dropped by 28% from Rs.87 crores to Rs.63 crores. Sales growth was driven by the performance of both the Indian and Overseas operations and favorable exchange. Margins came under pressure owing to rising input costs, strong dollar and a challenging customer market. The Ceramics business segments recorded growth rates in excess of 15%. The Abrasives business grew at 4% and Electro minerals business had a flat sales.

Profitability of both Abrasives and Electrominerals came under pressure. The Ceramics business witnessed an increase in profit.

Earnings before interest, depreciation and amortisation (EBITDA) recorded a drop of 22% (i.e. from Rs.101 crores to Rs.79 crores) without considering exceptional income of last year.
Profit before tax and exceptional income was Rs.57 crores – a drop of 29% over the previous year amount of Rs.80 crores. The profit after tax dropped by 31% (i.e. Rs.36 crores compared to Rs.52 crores last year)

Consolidated Segmental Operating Performance


Sales of the abrasives business on a consolidated basis registered an increase of 4%. Sales for the quarter was Rs.202 crores (Rs.195 crores for the corresponding period of last year).

Profit before interest and tax on a consolidated basis recorded a drop of 33% i.e. from Rs.32 crores to Rs.21.4 crores, on a quarter on quarter basis.

The moderate growth trends in India had an adverse impact on the market sentiments, thereby resulting in low off take by the channels.

Electro Minerals

At a consolidated level, the net sales for Q1 were flat at Rs. 184 crores versus Rs. 183 crores for the corresponding quarter last year. On a sequential basis, this is a growth of 5%.

Profit before interest and tax on a consolidated basis recorded a drop of 44% i.e. from Rs.36 crores to Rs.20.1 crores, on a quarter on quarter basis. On a sequential basis, this is a growth of 5%.

Foskor Zirconia registered drop in sales and profit on account of uncertain market condition in the refractory industry.


The ceramics segment recorded a 17% increase in sales on a consolidated basis (Rs.118 crores vs. Rs.101 crores last year).

Alumina Ceramics, particularly Metalized, did well compare to sequential quarter in registering higher sales. On the back of steady export sales, refractory division did well. The operations in Australia registered higher growth.

Profit before interest and tax of the ceramics business segment on a consolidated basis increased by 11% i.e. from Rs.22.3 crores to Rs.24.7 crores.

Corporate Events

In August 2012, CUMI International Ltd, a wholly owned subsidiary of the Company has acquired the entire share capital of M/s. RHI Isithebe, South Africa.

About Murugappa Group

Founded in 1900, the Rs. 22314 Crores (USD 4.4 billion) Murugappa Group is one of India’s leading business conglomerates. The Group has 28 businesses including eight 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, Cargill, 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.