Carborundum Universal net drops

City-based Carborundum Universal Ltd (CUMI) closed the current fiscal's first quarter with near flat sales growth while its net profits dipped by Rs.3.46 crore.

In a statement issued here Tuesday, the Murugappa group company said it posted a consolidated sales of Rs.291.79 crore and a net profit of Rs.22.64 crore during the first quarter of 2013-14 as against Rs.291.70 crore and Rs.26.10 crore respectively logged during comparable period the previous year.

According to the company, the increase in sales was largely due to the better performance of its electro minerals division.

"The division witnessed increase in volumes in silicon carbide business in Russia and alumina business in India. South African subsidiary reported higher volumes compared to the earlier quarter. Sales also grew for abrasives segment for both the periods. Ceramic sales however de-grew for the same periods," the company said.

According to the statement, profitability of electro minerals business improved on quarter on quarter basis whereas it dropped in the case of abrasives and ceramics business divisions.