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

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Carborundum Universal (Cumi) of Murugappa Group has recorded a 140 per cent increase in consolidated net profit during the fourth quarter of the 2022-23 financial year to Rs.137 crore, 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 the fourth quarter of FY22 to Rs. 1,183 crore in the January-to-March 2022-March quarter. On a consolidated basis, earnings for the year posted strong growth across the electronic metals and ceramics segments. Earnings after tax and non-controlling interest grew by 24% to Rs.414 crore as against Rs.333 crore last year. On a standalone level, it increased by 30 per cent to Rs 331 crore from Rs 254 crore over the past year.

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

In terms of sectors, Abrasives saw its EBITDA at the consolidated level drop by 33% to Rs.105 crore from Rs.156 crore. The profit decline was mainly due to the cost of consolidation related to Rhodius and the re-establishment of the business in Awuko. Revenue for the year on a consolidated level grew by 59 per cent to Rs.2,035 crore as compared to Rs.1,283 crore during the previous year. Sales from Awuko and Rhodius for the year were at Rs 619 crore compared to Rs 10 crore in FY22.

In electronic metals, EBIT rose to Rs.275 crore from last year’s Rs.194 crore indicating growth of 42 per cent on the back of volume growth and higher realizations. Revenue at the consolidated level grew by 25% to Rs.1,634 crore as against Rs.1,312 crore last year.

For ceramics, EBIT grew by 57% to Rs.251 crore from Rs.159 crore due to growth in volume, completion and product mix. Consolidated revenue grew by 29% to Rs.1,027 crore in the current year from Rs.798 crore during the previous year.

The Board of Directors of the company has recommended a final dividend of Rs 2 per share (200 per cent on the nominal value of SAR 1 per share) to the shareholders of the company. The company had earlier paid an interim dividend of 1.50 riyals per share, hence the total dividend of 3.50 riyals per share (350 per cent on par value of 1 riyal per share).