Carborundum,Universal Autofoundry

A part of the Murugappa group, the company’s consolidated net revenue for Q4FY14 grew only 10% (YoY) at Rs.525 crore but net profit soared 108% (YoY) and 150% (QoQ) at Rs.25 crore. This was on account three factors – tight leash on operating costs, 23% lower tax outgo and forex gain of Rs.1.54 crore – this looks big when compared to the loss of Rs.5 crore in Q4FY13.

The company has three segments – abrasives, ceramics and electrominerals. In terms of revenue growth, it was abrasives which was the biggest contributor at 41%, electrominerals at 37% and ceramics at 24%. But in terms of contribution to bottom line, ceramics was the best, followed by electrominerals and last by its mainfray, abrasives. EBIT for abrasives for the quarter dipped down sharply from 4% to 1.7% (YoY), that of ceramics came in at 3.3% v/s 3.4% while electrominerals did the best – EBIT of 3% v/s loss last Q4.

There is now word yet on its proposed greenfield project to expand its fired and castable refractories, which was deferred in FY13 and continues to depend on South African subsidiary, RHI Isithebe Pty and feels for now, this inorganic acquisition will fuel its growth for the coming months. On an equity of Rs.18.78 crore (Re.1 face value), the company is sitting on a reserves of Rs.1085 crore.