Carborundum Universal's net profit rises 10% to Rs 85.99 crore in Q1

Murugappa Group company Carborundum Universal (Cumi) has posted a 10 per cent rise in consolidated net profit for the first quarter of the financial year 2022-23. Profit went up to Rs 85.99 crore compared to Rs 78.01 crore during the April-June quarter of 2021-22. 

Consolidated revenue from operations of abrasives and industrial ceramics increased by 60 per cent from Rs 711.59 crore to Rs 1,139.83 crore.

“Profit for the quarter was mainly impacted by exchange loss in the Russian subsidiary due to strengthening of the ruble,” the company said in a statement.

The capital expenditure incurred during the quarter was Rs 56 crore at the consolidated level. The debt-equity ratio was at 0.09.  The net cash was at Rs 118 crore.

In the case of abrasives, segment revenue for the quarter grew by 88 per cent to Rs 513 crore compared to Rs 273 crore in Q1 of last year.

Standalone profit before finance cost and tax was lower by 53 per cent at Rs 18 crore against Rs 38 crore in the first quarter of the last financial year.

“The lower profit was due to cost impact in standalone, closure cost at China and integration cost,” the statement added.

For electro minerals, the segment revenue was at Rs 406 crore versus Rs 288 crore in Q1 of last year, resulting in an increase of 41 per cent.