Carborundum Universal Limited (CUMI), a leading player in the abrasives and electronic minerals business, is expecting better margins and new products to improve its growth.
Revamping of its operations is expected to help the company clock in Rs 32 billion revenue by 2019-20 fiscal year from Rs 16 billion posted in the FY18.
The company has started the 2018-19 financial year on a strong note and its electro-minerals and ceramic businesses have seen good growth during the first quarter of the year, said a senior management official.
“We expect to put up prices even further in the next three quarters, so I believe the margin should go up. The price increase will be seen in the next three quarters gradually. While all indicators are strong and growth capacity utilisation is good, margin is picking up and input cost stabilising. The firm would still like to keep with its initial guidance for one more quarter before it starts any correction in terms of guidance,” K Srinivasan, managing director, CUMI, had told analysts recently.
"Overall, we have been saying this year we will grow at more than 15 per cent, which should take us to over Rs 27 billion in FY19," he said.
The company has been investing into developing new materials, and into over 250 Intellectual Property filings, including patents, design registrations, and trade mark.
On new products, the company plans to start small and allow it to scale up to commercially prove itself as viable. It has earmarked a capex of Rs 1.2 billion during the current fiscal year.
While the company was expecting the implementation of Goods and Services Tax (GST) to bring in more business in India, there has not been any great benefit till the first quarter of the year.
According to an earlier report, CUMI last year carried out various changes in its operation, and shifted some of its manufacturing operations from overseas to India.