Carborundum Universal consolidated Q2 net dips 8% to Rs 94 cr, sales up 34%

Revenue spike driven by strong show in electro minerals and ceramics, and sales of Rs 141 crore by newly acquired subsidiaries

Murugappa Group firm Carborundum Universal (Cumi) has posted an eight per cent dip in consolidated net profit during the second quarter of financial year 2022-23 to Rs 93.69 crore, from Rs 102.68 crore during the same quarter a year ago.

During the quarter under review, its consolidated sales rose 34 per cent to Rs 1,117 crore from Rs 834 crore in the year-ago quarter, driven by strong performance in electro minerals and ceramics, and sales of Rs 141 crore by newly acquired subsidiaries. At a standalone level, sales grew by 11 per cent to Rs 610 crore.

The revenue from abrasives during the quarter was up 49 per cent to Rs 484 crore, from Rs 325 crore in Q2FY22. Standalone revenue from the segment grew by 3 per cent to Rs 276 crore. Newly acquired subsidiaries, Rhodius and Awuko added Rs 128 crore to the top line.

Profit before finance cost and tax for the segment dipped 37 per cent to Rs 28 crore, from Rs 45 crore in Q2FY22. “The lower profit is due to cost impact in standalone and integration cost related to newly acquired subsidiaries. However, the profit was better by 57 per cent on a sequential basis,” the company said in a statement.

Segment revenue for electro minerals was up 27 per cent to Rs 410 crore, from Rs 323 crores in Q2 of last year. Profit before finance cost and tax was Rs 69 crore (Rs 48 crore in Q2FY22). The growth was due to a strong standalone show and that of overseas subsidiaries, on account of higher realisation amid greater demand for minerals, the company said.

The revenue from ceramics was up 21 per cent to Rs 254 crore, from Rs 210 crore in Q2FY22. Profit before finance costs and tax rose 32 per cent to Rs 65 crore from Rs 49 crore due to growth in volume, realisation and product mix, the company added.