Murugappa Group FY24 results: Net profit rises 15.2% to Rs 7,885 crore

Chennai-based Murugappa Group has posted a 15.2 per cent rise in net profit during the financial year 2023-24 to Rs 7,885 crore, compared to Rs 6,846 crore during the same period in 2022-23.

During the period under review, the market capitalisation of the nine listed companies of the group aggregated to Rs 3,44,626 crore, versus Rs 2,25,320 crore in the previous financial year. The group registered a growth of 4.9 per cent in turnover to Rs 77,881 crore during 2023-24, compared to the previous year’s Rs 74,220 crore. Earnings before interest, taxes, depreciation, and amortisation (Ebitda) grew by 10.8 per cent to Rs 11,554 crore, compared to Rs 10,426 crore in 2022-23. Profit after tax (PAT) was Rs 7,885 crore (previous year Rs 6,846 crore), registering a growth of 15.2 per cent.

During the year, the group’s return on equity for its financial services businesses improved marginally to 19.2 per cent from 19 per cent in the previous year. Return on capital employed for the manufacturing entities declined to 21.3 per cent from 27.9 per cent in the previous year. The manufacturing entities of the group generated a free cash flow of Rs 1,229 crore, which stood at 31 per cent of their net profit.

Aggregate capital expenditure programmes towards expansion, debottlenecking, modernising, digital initiatives, and infrastructure facilities across group companies, excluding M&A, were approximately Rs 3,129 crore during the year, compared to Rs 1,592 crore in 2022-23. During the year, Coromandel International Limited commissioned a state-of-the-art sulphuric acid plant at Visakhapatnam to further strengthen its backward integration capabilities. The plant was set up with an investment of Rs 400 crore, with a production capacity of 1,650 metric tonnes per day. This new facility increased Coromandel’s sulphuric acid capacity to 11 lakh tonnes per annum from 6 lakh tonnes per annum, supporting its requirement towards downstream processes involving phosphoric acid and phosphatic fertiliser production. Cholamandalam Investment and Finance Company purchased 4.67 acres of land in Chennai from DLF IT Offices Chennai Private for Rs 735 crore.