Carborundum Uni on high street
Carborundum Universal is on the high street today. The company declared its Q4FY16 performance on the 4th of May and the euphoria over the number seems to be continuing. The stock hit a new 52-week high today at Rs.215.70 and it continues to remain firmly in the green.
A part of the Murugappa group, the company posted good consolidated Q4 numbers. At a glance, the net profit shows a 40% (YoY) decline at Rs.40 crore but only on closer scrutiny you see that net profit in Q4FY15 was boosted up due to exceptional income of Rs.56 crore. Thus without this one-time gain, the YoY performance is excellent. Consolidated net sales for the quarter grew by 7% at Rs.528 crore v/s Rs.465 crore.
The company ended FY16 with a net profit at Rs.143 crore, up 4%. The FY15 net profit of Rs.138 crore included an exceptional gain of Rs.50 crore. Consolidated net sales for the full year increased by 2% to Rs.2,056 crore.
The company has three segments – abrasives, ceramics and electrominerals. In terms of revenue growth, it was abrasives which was the biggest contributor at 42%, electrominerals at 33% and ceramics at 22%.. On an equity of Rs.18.84 crore (Re.1 face value), the company is sitting on a reserves of Rs.1165 crore. EPS for the year stands at Rs.7.58.