Murugappa group's profit before tax increases 2.2% at Rs 4,106 cr in FY20

Manufacturing entities generated a free cash flow of Rs 1,903 crore as against negative Rs 30 crore

Murugappa Group posted a 2.2 increase in its profit before tax (PBT) for FY20 at Rs 4,106 crore, against Rs 4,019 crore PBT the previous year. 

Chennai-based group's manufacturing entities have generated a free cash flow of Rs 1,903 crore, against a negative Rs 30 crore a year ago, it said. The group reported a 3.3 per cent rise in its turnover to Rs 38,105 crore in FY20, from Rs 36,890 crore in the previous financial year. The market capitalisation of the listed companies of the group totals to Rs 46,683 crore as of March 31. The group has 28 businesses, including nine listed companies, traded in the BSE & NSE.

 Its profit after tax, excluding special provision of Cholamandalam Investment & Finance and Chola MS General Insurance, grew by 20.4 per cent at Rs 3,489 crore. During the year, the group's manufacturing entities have reduced loan outstanding of Rs 1,540 crore, leading to an improvement in debt equity from 0.74 times as of March 31. 

EID Parry has sold 2 per cent stake in its subsidiary, Coromandel International, aggregating to Rs 368 crore. The proceeds from the sale will be utilised to reduce debt.

The capex spent by the group companies in FY20 was Rs 1,009 crore, with total spend in two years (FY19 and FY20) standing at Rs 1,610 crore as against the plan of Rs 2,000 crore.

Murugappa Group's businesses score card

• Cholamandalam Investment and Finance Company Limited (CIFCL) PAT for 2019-2020 at Rs 1,052 Crore after one-time provision of Rs 504 crore to cover contingencies due to Covid-19 and macroeconomic factors
• Chola MS PAT at Rs 149 crore in 2019-20 vs Rs 179 crore the previous year
• Carborundum Universal Limited (CUMI) PAT at Rs 275 crore vs Rs 248 crore
• Tube Investments of India Limited (TII) PAT was at Rs 313 crore as against Rs 251 crore the previous year
• Coromandel International Limited (CIL) PAT was Rs 1,065 crore (previous year Rs 720 crore) a growth of 48% driven by nutrient and allied businesses and a good recovery in crop-protection business