Carborundum Universal rallies 5% on the back of 24% surge in post-tax profit

Shares of Carborundum Universal Limited rallied 5 percent in early trade after robust Q4 results. At 9:40am on Tuesday, the stock was up 4.32 percent at Rs 1,160.

Carborundum Universal, part of the Murugappa Group, has reported a 24 percent rise in post-tax profit and non-controlling interest at Rs 414 crore for the year ended March 31, 2023, when compared with Rs 333 crore in the previous year in a filing with the BSE on May 8.

The board has recommended a final dividend of Rs 2 per share of a face value of Re 1. The company had earlier paid an interim dividend of Rs 1.50 per share, aggregating to a total dividend of Rs 3.50 per share.

Consolidated revenue grew 40 percent to Rs 4,601 crore in FY23 as against Rs 3,290 crore in FY22, “contributed by strong performance across all business segments and sales of Rs 673 crore from recently acquired subsidiaries such as Awuko, Rhodius, and Pluss”, as per the filing with the BSE.

On a standalone basis, the company’s profit after tax increased by 30 percent to Rs 331 crore for FY23, when compared with Rs 254 crore in FY22. Sales grew by 13 percent to Rs 2,473 crore (Rs 2,192 crore).

For the quarter ended March 31, 2023, the company recorded a 140 percent increase in consolidated profit after tax and non-controlling interest at Rs 137 crore against Rs 57 crore in the previous year. Consolidated revenue from operations for the March 2023 quarter grew to Rs 1,183 crore from Rs 859 crore in the same period of last year.

The capital expenditure incurred in 2022-23 was Rs 294 crore at the consolidated level. The debt-equity ratio at the consolidated level was 0.08. Cash and cash equivalents, including deposits with tenure exceeding 3 months’ net of borrowings were at Rs 166 crore.

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