Carborundum Universal Q1 Results: Profit, revenue rise from last year, margins narrow; Stock volatile

Carborundum Universal Q1 Results: Profit, revenue rise from last year, margins narrow; Stock volatile


Shares of Carborundum Universal gained on Friday, August 7, after the company reported its first quarter earnings.

The company reported a positive set of results across most parameters but its margins were under pressure.

The company’s net profit came in at 76.4 crore, up 23.4% from the previous year’s 61.9 crore.

Its revenue increased 17% to 1,426.6 crore from 1,219 crore last fiscal.

The company’s earnings before interest, taxes, depreciation and amortization (EBITDA) increased 11.4% to 135.1 crore from 121.3 crore in the first quarter last year.

Its margin however contracted to 9.5% from 9.9% in the year-ago period.

For the company’s Abrasives business, consolidated sales stood at ₹610 crore, which is a growth of 20.1% from the same quarter last year. Profit before finance cost and tax (PBIT) stood at ₹40 crore, higher than ₹11 crore last year.

Revenue for the Electro Minerals segment stood at ₹473 crore, increasing by 16.8% from the year-ago period. PBIT for the segment, on a consolidated basis, stood at ₹22 crore, compared to ₹4 crore earlier.

Shares of Carborundum Universal, the Murugappa Group company, gave up gains after the results announcement, but recovered from the day’s low. The stock now trades 2% higher at ₹1,091.5. The stock has risen 27% so far this year.

Also Read: JK Tyre Q1 Results: Shares fall as West Asia crisis hits margins, profit



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