Carborundum Universal reported an increase in gross sales in FY 2016-17

2017-05-22

May 22, 2017 - Carborundum Universal Limited (CUMI), subsidiary of Murugappa Group, On May 19, reported an increase in consolidated gross sales by 9% to Rs. 2,200 Crores in FY 2016-17 compared to Rs. 2,024 Crores in the previous year. Full year consolidated segmental profitability improved for Abrasives and Ceramics businesses, supported by higher sales volume. On a consolidated basis, in FY 2016-17, profit after tax increased to Rs. 175 Crores from Rs. 144 Crores.

Abrasives division at consolidated level registered a growth of 10%. The sales for FY 2016-17 were Rs. 1,016 Crores compared to Rs. 922 Crores in the previous year. Both Indian and overseas entities had a good growth. Profit before interest and tax (PBIT) for the year FY 2016-17 increased to Rs. 113 Crores from Rs. 83 Crores, supported by higher volumes from Indian and overseas entities.

Electro minerals division at consolidated level registered a growth of 3%. The consolidated sales for FY 2016-17 were Rs. 769 Crores compared to Rs. 749 Crores of previous year. Indian operations registered a growth; however, sales were marginally lower for the Russian entity. The profit before interest and tax (PBIT) dropped from Rs. 127 Crores to Rs. 91 Crores, owing to adverse exchange movement of Rouble (RUB) and lower rainfall affecting power generation in captive hydel power plant.

Ceramics division registered a growth of 15%. For FY 2016-17 the sales were at Rs. 472 Crores from Rs. 409 Crores of previous year. The standalone industrial ceramics and refractories businesses delivered a good growth.Profit before interest and tax increased from Rs. 50 Crores to Rs. 70 Crores, driven by higher volumes in both standalone and overseas operations

CUMI commissioned three fusion plants at an investment of Rs. 80 crores. This is one of the most advanced and integrated electro-mineral complexes in the world. CUMI has also inaugurated a Centre of Excellence for Research in Technical Ceramics for industrial and advanced applications at Hosur, Karnataka. This facility will aid CUMI's growth in Wear Resistant and Technical Ceramics including Metalised Ceramic range of products.