Murugappa Group registers a growth of 13% in turnover at₹ 32,893Crores during 2017-18 (last year ₹ 29,206Crores). Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) posted a growth of 14%, at ₹4,663Crores (last year ₹ 4,075Crores). Profit Before Tax (incl extra ordinary items)were ₹3,562Crores (last year ₹ 3,013Crores) registering a growth of 18%.
A: Company-wise Performance:
Figures in ₹ Crores
Group Companies | Net Sales | EBITDA | ||
2017-18 | YoY Growth % | 2017-18 | YoY Growth % | |
Cholamandalam Investment and Finance Company Limited | 5,501 | 17% | 1,535 | 34% |
Coromandel International Limited | 10,891 | 9% | 1,285 | 24% |
Cholamandalam MS General Insurance Company Limited | 4,103 | 31% | 366 | 17% |
Carborundum Universal Limited | 2,330 | 12% | 422 | 18% |
Tube Investments of India Limited | 4,789 | 11% | 442 | -2% |
E.I.D. Parry (India) Limited | 4,569 | 5% | 405 | -35% |
Other Businesses | 710 | 10% | 208 | 39% |
Total | 32,893 | 13% | 4,663 | 14% |
Note: Previous year’s numbers have been re-grouped, wherever necessary
B: Market Capitalization
Market Capitalization of the listed companies of the Group aggregates to $10 billion (Rs. 67,117 Cr) as of 31stMar 2018.
C: Corporate Initiatives
D: Capital Expenditure
Aggregate capital expenditure programmes towardsexpansion/ debottlenecking / modernising facilities across Group companies were over ₹ 600Croresduring the year.
E: Sector highlights for 2017-18
Financial Services Businesses
Cholamandalam Investment and Finance Company Limited (CIFCL)
CIFCL’s Assets Under Management (AUM) registered a growth of 25% to ₹ 42,879 Crores during FY2017-18. The aggregate disbursements for FY 2017-18 is at ₹ 25,114 Crores,a growth of 35% led by stellar performance in the Vehicle Finance business division, registered a 42% growth over the previous year. Home Equity disbursements grewby 4% in FY2017-18.
Due to effective credit management and collections, CIFCL’s overall Gross Non-Performing Assets (GNPA) has reduced to 2.94% in FY 2017-18 from 4.66% in the previous year. Profit After tax for FY 2017-18stoodat ₹ 974 Crores registering a growth of 36% year-on-year.
Capital Adequacy Ratio (CAR) was at 18.40% against the regulatory requirement of 15%. Tier I capital is at 13.3% against regulatory requirement of 10%.
The company operates from 873 branches across India.
Cholamandalam MS General Insurance Company Limited (Chola)
Chola’sGross Written Premium recorded a growth of 31% during FY2017-18 to ₹ 4,103 Crores. Combined Ratio (CoR) has improved to 100.79% in FY 2017-18 from 101.25% in the previous year. Profit Before tax grewby17%to ₹ 347 Crores.
Retail has been the dominant growth strategy with Motor, Health and Crop insurance contributing over 80% of the premiums with a good mix across metros and non-metros.
Investment income during the year was ₹489 Crores; Investment book size as of end of March 2018 was over ₹ 6,300 Crores.
The company operates from 90 branches across India.
Engineering Businesses
Carborundum Universal Limited (CUMI)
CUMI reported an increase in consolidated net sales by 12% to ₹ 2,330 Crores in FY 2017-18driven by better performance from all major segments. On a consolidated basisProfit AfterTaxincreased to ₹ 220Crores from ₹ 184Crores.
Abrasives
The division registered a growth of 9%. The net sales for FY 2017-18 were₹ 1,018 Crores compared to ₹ 938 Crores in the previous year. The Indian operations delivered good growth on account of higher volumes. Aided by buoyancy in revenues and cost reduction projects and others initiatives, Profit Before Interest and Tax (PBIT) for the year FY 2017-18increased to ₹ 132 Crores from ₹ 113 Crores in the previous year.
Electro minerals
The division registered a growth of 18%. The net sales for FY 2017-18were ₹ 883 Crores compared to ₹749 Crores in the previous year. Both Russian and Indian businesses exhibited improved performance. The Profit BeforeInterest and Tax (PBIT) increased to ₹ 127 Crores in FY 2017-18 from ₹ 91 Crores in the previous year.
Ceramics
The division registered a growth of 11%. The net sales for FY 2017-18were ₹502 Crores compared to ₹ 451 Croresin the previous year. Profit Before Interest and Tax increased (PBIT) to ₹ 76 Crores from ₹ 70 Crores, driven by higher volumes in both standalone and overseas operations.
Tube Investments of India Limited (TII)
For FY 2017-18, TII’s consolidated net sales were higher by 11% at ₹4,789 Crores.Profit AfterTax for the year was ₹156 Crores as against ₹ 174 Crores in the previous year.
Engineering
The division has registered a net sales growth of 24% during the year and Profit BeforeInterest and Tax (PBIT) for the year was ₹ 175 Crores as against ₹146 Crores in the previous yearregistering a growth of 20%.In domestic tubes, TII continue to improve its market share through better quality and service. The sales of Large Diameter Tubes records ahealthy growth.
Cycles and Accessories
Net sales of the division for the year dropped by 3%. Profit BeforeInterest and Tax (PBIT) for the year was ₹ 0.33 Crores as against ₹ 36 Crores in the previous year. The Market condition of the Bicycles segment continues to be challenging. Trade volumes across product segments have declined during the last year. The division’s sales in theinstitution segment grew up marginally. Premium Cycles Segment grew by 29%. This division continues to pursue aggressive cost reduction measures to mitigate the drop in volumes.
Metal Formed Products
Net sales of this division, with a product range of doorframes, chains and fine blanking products catering to the Auto sector, registered a growth of 11% during the year and Profit Before Interest and Tax (PBIT) for the year was ₹ 102 Crores as against ₹ 88 Crores in the previous year, registering a growth of 16%.
Shanthi Gears Limited
Shanthi Gears Ltd., a subsidiary company of TII operating in the Industrial Gears Business, registered a net salesgrowth of 16% for the year. The net sales for the year were ₹ 214 Crores as against ₹184 Crores in the previous year. Profit AfterTax (PAT) for the year was at ₹ 29 Crores as against ₹ 23 Crores in the previous year, registering a growth of 27%.
Agri-businesses
Coromandel International Limited (CIL)
Coromandel International Limited registered a growth of 9% and consolidated net sales stood at ₹ 10,891 Crores.The business has shown an all-round improvement in the performance by increasing its sales and higher capacity utilization, resulting in operational efficiencies. In the Nutrient segment, business has increased its share in the key addressable markets.
Consolidated Profit AfterTax for year ended March 2018 is ₹664Crores as against previous year of ₹477Crores registering a growth of 39%.
E.I.D.-Parry (India) Limited(EID)
E.I.D. Parry (India) Limited reported a consolidated net sales (excluding Coromandel International Limited), of ₹ 4,569 Crores in FY 2017-18, registering a growth of 5%.The performance of the company has been impacted due to depressed sugar prices on account of higher sugar production in the country than the previous sugar season.
The Company has made a one-time settlement of additional cane price of ₹ 87 Crores for Sugar years 2013-14 to 2016-17 which has been agreed with the farmers registered with the company in Tamil Nadu. Profit AfterTax (PAT) for the year 2017-18 was ₹28Crores against ₹ 302 Crores in the previous year.
Other Businesses
This business group predominantly consists of Plantations, Floor Covering / Home Textiles, Technical Textiles / Shade Nets and Construction. The net sales of this business group were recorded at ₹710 Crores registering a growth of 10%. Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) were recorded at ₹ 208 Crores registering a growth of 39%.
1. HR Updates
2. Corporate Social Responsibility
In addition to the above, during the year, the Group’s manufacturing companies stepped up development initiatives in the area of education, healthcare, sanitation, skill development, environment & sustainability, infrastructure development and community building primarily catering to communities around the plant/office locations.
3. Brand initiatives
The Group continued to invest in building awareness and engagement among core audiences with the multi-lingual ‘Together Let’s Progress’ campaign on television and digital media. During the year, the Group increased its investment in digital platforms. In addition to the on-going digital campaigns, a thematic public awareness campaign titled ‘Good Netizen, Good Citizen’ was launched with the aim of raising social awareness on the responsible use of social media and the Internet. The campaign comprising of 6 videos garnered over 16 million views online.
4. Awards and Recognitions
The Group Companies have won several awards over the last year, below is a compilation of a few of them:
Safe Harbor
Some of the statements in this news release that are not historical facts are forward looking statements. These forward looking statements include financial and growth projections as well as statements concerning our plans, strategies, intentions and beliefs concerning our businesses and the markets in which we operate. These statements are based on information currently available to us, and we assume no obligation to update these statements as circumstances change. There are risks and uncertainties that could cause actual events to differ materially from these forward looking statements. These risks include, but are not limited to, the level of the market demand for the products, the highly competitive market for the types of the products that we offer, market condition that would cause customers to reduce their spending for the products, our ability to create, acquire and build new businesses and to grow existing businesses, our ability to attract and retain qualified personnel, currency fluctuations and market conditions in India and elsewhere around the world, and otherwise not specifically mentioned herein but those that are common to industry.
About Murugappa Group
Founded in 1900, the INR 329 Billion Murugappa Group is one of India’s leading business conglomerates. The Group has 28 businesses including nine 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., Shanthi Gears Ltd., Tube Investments of India Ltd., TI Financial Holdings Ltd and Wendt (India) Ltd.
Market leaders in served segments including Abrasives, Auto Components, Transmission systems, Cycles, Sugar, Farm Inputs, Fertilisers, Plantations, Bio-products and Nutraceuticals, the Group has forged strong alliances with leading international companies such as GroupeChimiqueTunisien, Foskor, Mitsui Sumitomo, Morgan Advanced Materials, SociedadQuímica y Minera de Chile (SQM),Yanmar& Co. and Compagnie Des Phosphat De Gafsa (CPG). The Group has a wide geographical presence all over India and spanning 6 continents.
Renowned brands like BSA, Hercules, Montra, Mach City, Ballmaster, Ajax, Parry’s, Chola, Gromor, Shanthi Gears and Paramfos are from the Murugappa stable. The Group fosters an environment of professionalism and has a workforce of over 35,000 employees.
For more details, visit www.murugappa.com
For further information, please contact
Sandhya Subramanian Vinod Kumar
Murugappa Group Ogilvy PR Worldwide
+91 9500072458 +91-9840126179
sandhyas@corp.murugappa.comVinod.kumar@ogilvy.com
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