Corburandum Universal results: What the numbers suggest

Murugappa Group firm Carborundum Universal (CUMI), a manufacturer and developer of abrasives, ceramics, refractories, aluminium oxide grains, machine tools, polymers, adhesives and electro minerals, posted Q1 consolidated results that trailed estimates.

This was primarily attributed to subdued sales in the abrasives segment. Total revenues grew about 6 per cent y-o-y, reaching Rs 1,203 crore. There was a y-o-y increase of around 33% in operating profit, reaching Rs. 169 crore, due to a decline in other expenses. The OPM rose by 290 bps y-o-y to 14.1 per cent, although it was slightly below the anticipated 14.5 per cent.

The PAT saw a considerable growth of 98.5 per cent y-o-y, amounting to Rs 113 crore, which matched expectations. Segment analysis showed growth in the domestic and American subsidiaries within abrasives, but European entities like Awuko and Rhodius remained stagnant due to economic downturns in Europe.

The electro-minerals segment grew from standalone sales, but Russian and South African entities remained unchanged according to a report by Sharekhan by BNP Paribas. 

Read the report here.