The Board of Directors of Carborundum Universal Ltd. (CUMI) approved the results for the quarter ended June 30, 2022.

Financial performance

Consolidated sales for the quarter, increased by 60 per cent to Rs. 1129 crores from Rs. 706 crores in last year, driven by steady performance across business segments and additional sales of Rs. 181 crores from newly acquired subsidiaries. At standalone level, sales grew by 29 per cent to Rs. 600 crores from Rs. 465 crores.

On a consolidated basis, profitability for the quarter recorded strong growth across Minerals and Ceramics segments. Profit after tax and non-controlling interest for the quarter grew by 38 per cent to Rs. 79 crores against Rs. 57 crores in Q4 of last year. However, Profit after tax and non-controlling interest for the quarter grew up by 2 per cent compared to Q1 of last year. The profit for the quarter was mainly impacted by exchange loss in the Russian Subsidiary due to strengthening of Rouble.

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

Consolidated Segmental Operating Performance
Abrasives

Segment revenue for the quarter grew by 88 per cent to Rs. 513 crores compared to Rs. 273 crores in Q1 of last year. Standalone Abrasives grew by 20 per cent to Rs. 269 crores against Rs. 224 crores. The newly acquired subsidiaries – Rhodius and Awuko added additional sales to the topline besides the growth from standalone and Indian subsidiary.

Profit before finance cost and tax was lower by 53 per cent at Rs.18 crores as against Rs. 38 crores in Q1 of last year. The lower profit is due to cost impact in standalone, closure cost at China and integration cost.

Electro Minerals

Segment revenue was at Rs. 406 crores versus Rs. 288 crores in Q1 of last year, resulting in an increase of 41 per cent. Standalone Electro Minerals grew by 34 per cent to Rs. 179 crores from Rs. 134 crores. Volzhsky Abrasives Works, Russia and Foskor Zirconia (Pty) Ltd., South Africa registered significant growth.

Profit before finance cost and tax was at Rs. 59 crores as against Rs. 40 crores in Q1 of last year. Profitability growth was due to good performance at standalone and Foskor Zirconia, despite drop of profit in Russian subsidiary due to foreign exchange loss on account of strengthening of Rouble.

Ceramics

Segment revenue was higher by 40 per cent at Rs. 243 crores as against Rs. 173 crores in Q1 of last year. Standalone Ceramics grew by 37 per cent to Rs.193 crores from Rs.141 crores despite logistics and cost related challenges. Subsidiaries in Australia and America also registered significant growth.

Profit before finance costs and tax grew by 79 per cent to Rs. 58 crores from Rs. 33 crores on account of growth in volume, better realization, product mix and aided by forex gains.