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Carborundum Universal jumped 4.03% to Rs 517.55 after the company's consolidated net profit rose 2.4% to Rs 96.19 crore on 28% surge in net sales to Rs 750.26 crore in Q4 FY21 over Q4 FY20.
Consolidated sales were driven by steady performance across business segments. On a consolidated basis, segmental profitability for the year recorded growth across all the business segments.
The capital expenditure incurred during the FY 2020-21 was Rs 103 crore. The gross debt equity ratio of Carborundum Universal, was nil at a standalone level and 0.02 at a consolidated level. Cash and cash equivalents including short term deposits (net of borrowings) at the consolidated level stands at Rs 647 crore.
In the abrasives segment, revenue for the year at a consolidated level was marginally lower at Rs 993 crore compared with Rs 995 crore during last year. Standalone abrasives grew to Rs 818 crore from Rs 815 crore during the current year. Profit before finance costs and tax for the year increased to Rs 134 crore from Rs 113 crore on the back of better volumes, margins and product mix. Standalone Abrasives along with domestic subsidiary - Sterling Abrasives, contributed to the growth.
In the electro minerals segment, revenue at a consolidated level was higher at Rs 1,064 crore as against Rs 1,026 crore of last year. Standalone electro minerals business, Volzhsky Abrasives Works, Russia and Foskor Zirconia, South Africa registered good growth. Profit before finance costs and tax increased to Rs 136 crore from Rs 104 crore in last year indicating a growth of 30% on the back of better volume and cost management in the domestic Electro Minerals Segment as well as consistent performance by Russian subsidiary.
In the ceramics segment, consolidated revenue marginally declined 0.3% to Rs 627 crore from Rs 629 crore in the last year. The decline in standalone and Australian subsidiary was off-set by good growth in Volzhsky Abrasives Works, Russia. Profit before finance costs and tax grew to Rs 136 crore from Rs 132 crore on the back of favorable product mix and better cost management.
The board of the company at its meeting held on 28 April 2021 recommended a final dividend of Rs 1.50 per share.
Carborundum Universal manufactures and sells abrasives, ceramics (industrial ceramics and refractories) and electrominerals.
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