Murugappa Group firm Carborundum Universal Ltd has reported 21 per cent increase in its consolidated net profit (after tax and non-controlling interests) of ₹ 40 crore for the quarter ended June 30, 2016 when compared with ₹ 33 crore in the corresponding period of the previous fiscal.
Its gross profit for the June quarter stood at ₹ 60 crore as against ₹ 50 crore in a year-ago period. Consolidated net sales for the quarter grew by 10 per cent at ₹ 526 crore when compared with ₹ 476 crore.
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. Profitability of Abrasives and Ceramics businesses improved compared to last year. For Electro minerals, profits were lower compared to last year, according to a company statement.
On a standalone basis, profit after tax stood at ₹ 27 crore for the first quarter of this fiscal when compared with ₹ 24 crore in the same period last year. Total income stood at ₹ 360 crore as against ₹ 310 crore.
Hydel power project
The company has bid successfully for a hydel power project and received the allotment from the Government of Kerala, under small hydro promotion scheme. The Board has approved an investment of ₹ 125 crore towards this project.
“As we start moving more and more fusion processes into Kochi, our power requirement there goes up. Already, we own a 12 MW unit in Maniyar in Kerala. With additional manufacturing in Kochi, our power requirement will go up significantly. We won this hydel project almost a year ago. Now, we have come out with a proposal and got it cleared by the Board. This is a 21 MW project and we hope to build it in three years. With these, we will be able to meet 65-75 per cent of our power requirements,” K Srinivasan, Managing Director of the company told Business Line.