Carborundum Universal reports profit more than double to Rs 137 cr in Q4

Murugappa Group company Carborundum Universal (Cumi) has posted a 140 per cent rise in consolidated net profit during the fourth quarter of the financial year 2022-23 to Rs 137 crore, as compared to Rs 57 crore during the same period last financial year.

During the period under review, its consolidated sales increased by 38 per cent from Rs 859 crore in Q4 of FY22 to Rs 1,183 crore in January to March quarter of 2022-23. On a consolidated basis, profitability for the year recorded a strong growth across electrominerals and ceramics segments. Profit after tax and non-controlling interest grew by 24 per cent to Rs 414 crore against Rs 333 crore in the last year. At the standalone level, it increased by 30 per cent to Rs 331 crore from Rs 254 crore during last year.

Consolidated sales for the year increased by 40 per cent to Rs 4,601 crore from Rs 3,290 crore in the last year, contributed by strong performance across all business segments and sales of Rs 673 crore from recently acquired subsidiaries like Awuko, Rhodius and Pluss. The capital expenditure incurred during the year 2022-23 was Rs 294 crore at consolidated level. 

In terms of segments, abrasives saw its profit before finance costs at consolidated level decreased by 33 per cent to Rs 105 crore from Rs 156 crore. The lower profit was mainly due to integration cost related to Rhodius and re-establishing the business at Awuko. Revenue for the year at a consolidated level grew by 59 per cent to Rs 2,035 crores compared to Rs 1,283 crore during last year. The sales from Awuko and Rhodius for the year were Rs 619 crore compared to Rs 10 crores in FY22.

In electrominerals, profit before finance costs and tax increased to Rs 275 crore from Rs 194 crore in last year indicating a growth of 42 per cent on back of volume growth and higher realizations. Revenue at a consolidated level grew by 25 per cent to Rs 1,634 crore as against Rs 1,312 crore during last year. 

For ceramics, profit before finance costs and tax grew by 57 per cent to Rs 251 crore from Rs 159 crore on account of growth in volume, realization and product mix. Consolidated revenue grew by 29 per cent to Rs 1,027 Crores in the current year from Rs 798 crores during last year.

The Board of Directors of the Company has recommended a final dividend of Rs 2 per share (200 per cent on face value of Re 1 per share) to the shareholders of the Company. The Company had earlier paid an interim dividend of Re 1.50 per share, thus aggregating to a total dividend of Rs 3.50 per share (350 per cent on face value of Re 1 per share).