Carborundum Universal : 03.08.2018 Press Release

Carborundum Universal's Consolidated Net Sales up by

22%, Profit up by 57%

Chennai, 3rd August 2018: The Board of Directors met today and approved the results for the Quarter ended 30th June 2018.

Financial performance

Consolidated sales (without excise duty) for the quarter, increased by 22 percent to Rs.626 crores from Rs.512 crores driven by better performance from all the business segments. At a standalone level, sales (without excise duty) grew by 28 percent.

Consolidated segmental profitability for the Quarter improved for all the segments on the back of higher volumes.

The Company, at a consolidated level, spent Rs.16 cr on capital expenditure. The debt equity ratio was 0.08. Borrowings net of cash and cash equivalents was Rs.(79) cr i.e Company is having surplus cash.

On a consolidated basis, profit before tax increased from Rs.59 cr to Rs.95 cr. Profit after tax and non-controlling interest was Rs.63 cr (corresponding period of previous year Rs.40 cr).

Consolidated Segmental Operating Performance

Abrasives

Segment Revenue (without excise duty) were Rs.262 cr compared to last year's Q1 revenue of Rs.218 cr resulting in a gain of 21%. Standalone standard mass market business, which was impacted owing to GST migration in quarter 1 of previous year, had a good growth to report in current quarter on a low base.

Profit before interest and tax increased from Rs.22 cr to Rs.32 cr on the back of higher volumes.

Electro Minerals

Segment revenue (Without excise duty) were higher at Rs.239 cr versus Rs.202 cr for Quarter 1 of last year. India standalone business delivered good revenue growth on the back of higher volume and price growth. The Russian entity also delivered a better performance.

Profit before interest and tax increased from Rs.28 cr to Rs.35 cr on the back of higher volumes.

Ceramics

Segment Revenues (Without excise duty) were higher by 32 percent from Rs.110 cr to Rs.145 cr driven by improvement in volumes from standalone business.

Profit before interest and tax at Rs.29 cr was higher compared to Rs.16 cr in Quarter 1 of last year.

About the Murugappa Group

Founded in 1900, the INR 329 Billion (32,893 Crores) Murugappa Group is one of India's leading business conglomerates. The Group has 28 businesses including nine listed Companies traded in NSE & BSE. Headquartered in Chennai, the major Companies of the Group include Carborundum Universal Ltd., Cholamandalam Investment and Finance Company Ltd., Cholamandalam MS General Insurance Company Ltd., Coromandel International Ltd., Coromandel Engineering Company Ltd., E.I.D. Parry (India) Ltd., Parry Agro Industries Ltd., Shanthi Gears Ltd., Tube Investments of India Ltd., TI Financial Holdings Ltd and Wendt (India) Ltd.

Market leaders in served segments including Abrasives, Auto Components, Transmission systems, Cycles, Sugar, Farm Inputs, Fertilisers, Plantations, Bio-products and Nutraceuticals, the Group has forged strong alliances with leading international companies such as Groupe Chimique Tunisien, Foskor, Mitsui Sumitomo, Morgan Advanced Materials, Sociedad Química y Minera de Chile (SQM),Yanmar & Co. and Compagnie Des Phosphat De Gafsa (CPG). The Group has a wide geographical presence all over India and spanning 6 continents.

Renowned brands like BSA, Hercules, Montra, Mach City, Ballmaster, Ajax, Parry's, Chola, Gromor,

Shanthi Gears and Paramfos are from the Murugappa stable. The Group fosters an environment of professionalism and has a workforce of over 35,000 employees.

For further information, please contact

Vijayalakshmi D	Vinod Kumar
Murugappa Group	Ogilvy PR Worldwide
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