Carborundum Universal Abrasives Segment Grows 6.3% to Rs 552 Cr in Q1 FY25
Carborundum Universal's abrasives segment saw a 6.3% growth to ₹552 crore in Q1 FY25, driven by strong standalone and subsidiary performances.
by Damodharan N
Updated Jul 30, 2024
Article continues below advertisement
Table of Content
Carborundum Universal (CUMI) has reported a strong performance in its abrasives segment for Q1 FY25, with consolidated revenue reaching ₹552 crore, marking a 6.3% growth compared to the same period last year. This also represents a 3.5% increase compared to Q4 FY24.
The company's standalone business, along with its subsidiaries Rhodius and Awuko, showed significant growth compared to Q1 FY24. The standalone sales for the quarter grew by 7.3% to ₹303 crore compared to Q1 FY24 and saw a sequential growth of 3.7%. Notably, CUMI acquired Rhodius on February 2, 2022, at an enterprise value of 55 million Euros (approximately ₹464 crore).
Profits before finance cost and tax saw a remarkable increase of 76% compared to the same quarter last year. This impressive profit growth led to a notable improvement in margins, which increased from 6.0% in Q1 FY24 to 10.0% in Q1 FY25. The improved performance was primarily driven by better results in the standalone business as well as strong contributions from Awuko and Rhodius.
Source: Here
Carborundum Universal Q1 FY25 Results
Carborundum Universal (CUMI) announced its financial results for the quarter ended June 30, 2024, after a Board of Directors meeting.
Financial Performance:
- Consolidated Sales: Rs. 1,184 crore, nearly unchanged from Q1 FY24.
- Consolidated Profit After Tax (PAT): Rs. 113 crore, flat compared to Q1 FY24 and 16% lower than Q4 FY24.
- Standalone Sales: Rs. 664 crore, a 1% increase from Q1 FY24.
- Standalone PAT: Rs. 93 crore, flat compared to Q1 FY24 and slightly down by 1% from Q4 FY24.
- Capital expenditure during the quarter was Rs. 63 crore at the consolidated level.
- The debt-equity ratio at the consolidated level was 0.03.
Segment Performance:
- Abrasives: Consolidated sales grew by 6.3%, with standalone sales up by 7%.
- Electro Minerals: Consolidated revenue was Rs. 381 crore, similar to Q4 FY24 but 9% lower than Q1 FY24. Standalone sales for the quarter were Rs. 189 crore, showing a 5.4% increase from Q4 FY24 but a 4% decline compared to Q1 FY24. Profit before finance cost and tax dropped by 41.5% to Rs. 43.3 crore, with margins declining from 17.7% in Q1 FY24 to 11.4% in Q1 FY25.
- Ceramics: Consolidated revenue dropped by 6% to Rs. 270 crore compared to Q1 FY24 and by 4% compared to Q4 FY24. Profit before finance costs and tax was Rs. 65 crore, down by 9% compared to Q4 FY24.
The company's abrasives segment showed significant growth, while the ceramics and electro minerals segments faced challenges. CUMI continues to focus on expanding its business despite the varied performance across segments.
Murugappa Group
The Murugappa Group is a 123-year-old conglomerate with a presence in India and globally, with a turnover of INR 742 billion. The Group has diverse businesses in agriculture, engineering, financial services, and more, and includes 9 listed companies like Carborundum Universal, CG Power, and Cholamandalam.
Known for brands such as Ajax, Hercules, and Parry’s, the Group's products range from abrasives and auto components to fertilizers and bicycles. Guided by values of integrity, passion, quality, respect, and responsibility, the Group employs over 73,000 people.
Related Articles
Carborundum Universal Abrasives Segment Grows 6.3% to Rs 552 Cr in Q1 FY25 - FAQs
1. What was Carborundum Universal’s consolidated sales for Q1 FY25?
The consolidated sales for Q1 FY25 were ₹1,184 crore, which was almost the same as the sales in Q1 FY24.
2. How did Q1 FY25 consolidated sales compare to Q1 FY24?
The consolidated sales were nearly unchanged compared to Q1 FY24, indicating stable revenue performance.
3. What was the consolidated profit after tax (PAT) for Q1 FY25?
The PAT for Q1 FY25 was ₹113 crore.
4. How does Q1 FY25 PAT compare to Q1 FY24?
The PAT remained flat compared to Q1 FY24, showing no significant change in profitability year over year.
5. What was the PAT for Q1 FY25 compared to Q4 FY24?
The PAT was 16% lower than Q4 FY24, indicating a decrease in profitability on a sequential basis.
6. What was Carborundum Universal’s standalone sales for Q1 FY25?
The standalone sales for Q1 FY25 were ₹664 crore.
7. How did standalone sales for Q1 FY25 compare to Q1 FY24?
Standalone sales increased by 1% compared to Q1 FY24, showing a slight growth in revenue.
8. What was the standalone PAT for Q1 FY25?
The standalone PAT for Q1 FY25 was ₹93 crore.
9. How does the standalone PAT for Q1 FY25 compare to Q1 FY24?
The standalone PAT was flat compared to Q1 FY24, indicating consistent profitability.
10. What was the capital expenditure for Q1 FY25?
The capital expenditure incurred during Q1 FY25 was ₹63 crore.
11. What is the debt-equity ratio at the consolidated level?
The debt-equity ratio at the consolidated level was very low at 0.03, reflecting strong financial stability.
12. How much did the abrasives segment grow in Q1 FY25?
The abrasives segment grew by 6.3% in Q1 FY25 compared to the same quarter last year.
13. What were the standalone sales for the abrasives segment in Q1 FY25?
The standalone sales for the abrasives segment were ₹303 crore in Q1 FY25.
14. What was the growth in standalone sales for the abrasives segment compared to Q1 FY24?
Standalone sales for the abrasives segment grew by 7.3% compared to Q1 FY24.
15. What was the profit before finance cost and tax growth for the abrasives segment?
The profit before finance cost and tax for the abrasives segment increased by 76% compared to Q1 FY24.
16. What was the profit margin for the abrasives segment in Q1 FY25?
The profit margin for the abrasives segment increased to 10.0% in Q1 FY25.
17. How does the abrasives segment's margin in Q1 FY25 compare to Q1 FY24?
The margin improved from 6.0% in Q1 FY24 to 10.0% in Q1 FY25.
18. What was the consolidated revenue for the electro minerals segment in Q1 FY25?
The consolidated revenue for the electro minerals segment was ₹381 crore in Q1 FY25.
19. How did the electro minerals segment’s revenue for Q1 FY25 compare to Q1 FY24?
The revenue for the electro minerals segment was 9% lower compared to Q1 FY24.
20. What was the standalone sales for the electro minerals segment in Q1 FY25?
The standalone sales for the electro minerals segment were ₹189 crore.
21. How does the standalone sales for the electro minerals segment compare to Q4 FY24?
Standalone sales grew by 5.4% compared to Q4 FY24.
22. What was the profit before finance cost and tax for the electro minerals segment?
The profit before finance cost and tax for the electro minerals segment was ₹43.3 crore.
23. How did the profit margins for the electro minerals segment change?
Margins declined from 17.7% in Q1 FY24 to 11.4% in Q1 FY25.
24. What was the consolidated revenue for the ceramics segment in Q1 FY25?
The consolidated revenue for the ceramics segment was ₹270 crore in Q1 FY25.
25. How does the ceramics segment’s revenue in Q1 FY25 compare to Q1 FY24?
The revenue for the ceramics segment was 6% lower than in Q1 FY24.
26. What was the profit before finance costs and tax for the ceramics segment?
The profit before finance costs and tax for the ceramics segment was ₹65 crore.
27. How did the profit for the ceramics segment compare to Q4 FY24?
The profit was down by 9% compared to Q4 FY24.
28. When did Carborundum Universal acquire Rhodius?
Carborundum Universal acquired Rhodius on February 2, 2022.
29. What was the enterprise value of Rhodius at the time of acquisition?
The enterprise value of Rhodius was 55 million Euros, which is approximately ₹464 crore.
30. Which subsidiaries contributed to the growth in the abrasives segment?
The subsidiaries Rhodius and Awuko contributed to the growth in the abrasives segment.
Disclaimer : The above information is for general informational purposes only. All information on the Site is provided in good faith, however we make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability or completeness of any information on the Site.