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Murugappa group, a leading business house in South India, reported double-digit growth in its topline and bottomline during FY22 and its topline surpassed ₹50,000 crore for the first time.
The FY22 performance indicates that the group has resumed its double-digit growth trajectory. In FY21, it reported 9.5 per cent growth in topline. While it recorded a low single-digit growth in FY20, the previous two years saw the group recording 12-13 per cent growth.
The group’s Profit After Tax (PAT) grew 23.2 per cent to ₹5,520 crore compared to ₹4,481 crore in FY21.
Turnover grew 31.2 per cent at ₹54,722 crore (₹41,706 crore), while earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 30.3 per cent at ₹8,343 crore (₹6,404 crore).
Group companies
Its group companies such as Tube Investments of India, Coromandel International Ltd and Carborundum Universal Ltd reported a significant topline growth, while Cholamandalam Investment & Finance and Cholamandalam MS General Insurance reported 6 per cent and 10 per cent growth in topline respectively. EID Parry’s topline saw a very marginal decline. Coromandel is the largest company in the group by net sales (₹19,068 crore), followed by Tube Investments (₹12,060 crore) and Cholamandalam Investment (₹10,141 crore).
Cholamandalam Investment & Finance recorded the highest EBITDA at ₹3,008 crore, followed by Coromandel International Ltd at ₹2,298 crore and Tube Investments of India at ₹1,539 crore.
Manufacturing entities of the Group generated a free cash flow of ₹2,693 crore (previous year ₹5,049 crore), which stood at 86 per cent of PAT.
In FY22, manufacturing entities reduced loan outstanding by ₹939 crore leading to an improvement in total debt-equity to 0.13 times as of March 31, 2022, from 0.23 times as of March 31, 2021. The working capital in comparison to the total loan is at 2.93 times (the previous year 1.86 times).
While the Return on Capital Employed (ROCE) of the manufacturing entities improved to 26.7 per cent in FY22 from 21.5 per cent in FY21, the Return on Equity of the financial services businesses improved to 17.8 per cent from 17.0 per cent.
Capex programmes
Aggregate capital expenditure programmes towards expansion, de-bottlenecking, modernisation and digital infrastructure facilities across Group companies, excluding M&A, were at ₹1,109 crore in FY22 (₹465 crore in FY21).
Coromandel International Ltd is set to acquire a 45 per cent equity stake in Baobab Mining and Chemicals Corporation (BMCC), a rock phosphate mining company based in Senegal, Africa at an outlay of $19.6 million, besides loan infusion into BMCC of a further $9.7 million.
The market capitalisation of the 10 listed companies of the Group stood at ₹1,78,412 crore as of March 31, 2022 (₹1,28,707 crore a year ago).
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