Carborundum,Universal Autofoundry

This Murugappa group company posted a good set of numbers for Q1FY17. Its consolidated gross sales increased by 10% (YoY) at Rs.526 crore, with net profit coming in at Rs.40 crore, up 21%. On a sequential basis, sales and net profit were flat. The gain in sales was due to better performance from Abrasives and Ceramics businesses. Electro minerals business however had a nominal growth owing to adverse effect on translation of Rouble currency to Indian currency though profitability of Abrasives and Ceramics businesses improved that of electro minerals was lower.

Abrasives unit recorded a 15% rise in sales while EBIT rose by just Rs.10 crore. Electro minerals topline was flat while EBIT fell 22%. Ceramics did well with topline rising 17% and EBIT by 50%. The company is planning to set up a hydel power in Idukki in Kerala and has cost outlay is at Rs.125 crore.

The company’s equity stands at Rs.18.84 crore and EPS for the quarter is at Rs.2.13 (FV of Re.1). Promoters stake is at 43.81% and FIIs hold 19.76%.