Murugappa Group PAT up 53% to ₹4,500 cr in FY21

Our Bureau Chennai | Updated on September 06, 2021

Turnover rises 9.5% to ₹41,713 crore

Murugappa group, a leading business house in South India, reported a significant increase in operating margin and bottomline for the pandemic-hit 2020-21, while its topline saw a decent growth after a low single-digit growth in the earlier fiscal.

Profit after tax (PAT) of the Chennai-headquartered group stood at ₹4,500 crore for FY21 compared with ₹2,946 crore in FY20, an increase of 53 per cent.

The Group reported a turnover of ₹41,713 crore for 2020-21 compared with ₹38,105 crore in the previous fiscal, an increase of 9.5 per cent. Earnings before interest, taxes, depreciation and amortisation (EBITDA) grew 20.4 per cent at ₹6,440 crore (₹5,347 crore in FY20).

Manufacturing entities generated a free cash flow of ₹5,059 crore ( ₹1,903 crore), which stood at 254 per cent of PAT.

In engineering business, Carborundum Universal saw a marginal growth in revenue at ₹2,604 crore (₹2,569 crore), while Tube Investments of India Ltd reported a 29 per cent increase at ₹5,827 crore (₹4,520 crore).

In financial services businesses, NBFC Cholamandalam Investment & Finance Co registered 10 per cent increase in revenue at ₹9,584 crore (₹8,713 crore), while its insurance arm Cholamandalam MS General Insurance reported a marginal decline (0.23 per cent) at ₹4,388 crore (4,398 crore).

In the agriculture business, Coromandel’s revenue grew 8.05 per cent at ₹14,145 crore (₹13.091 crore), while EID Parry’s topline grew about 11 per cent, at ₹4,400 crore (₹3,967 crore).

Group manufacturing entities reduced loan outstanding of ₹2,148 crore during FY21, leading to an improvement in total debt-equity from 0.47 times as on March 31, 2020 to 0.20 times as on March 31, 2021.

In FY21, EID Parry has sold 4 per cent stake in its subsidiary, Coromandel International Ltd, for an aggregate value of ₹835 crore, which will be utilised to reduce debt.

Total capital expenditure programmes for expansion/ debottlenecking/ modernising /digital infrastructure facilities across group companies, excluding M&A, were about ₹445 crore in FY21 (₹1,009 crore). Capex spend during FY21 was low mainly on account of the challenges posed by the pandemic.

Market capitalisation of the 10 listed companies of the group aggregates to ₹1,28,707 crore as of March 31, 2021 ( against ₹46,683 crore for 9 listed companies).

In FY21, Tube Investments of India Ltd bought a controlling stake of 53.16 per cent in CG Power and Industrial Solutions Ltd. Consolidated turnover of the Group includes that of CG Power for the four-month period December 2020 to March 2021. Excluding the same, the Group registered a growth of 5.9 per cent at ₹40,339 crore ( ₹38,105 crore).

Published on September 06, 2021

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

  1. Comments will be moderated by The Hindu Business Line editorial team.
  2. Comments that are abusive, personal, incendiary or irrelevant cannot be published.
  3. Please write complete sentences. Do not type comments in all capital letters, or in all lower case letters, or using abbreviated text. (example: u cannot substitute for you, d is not 'the', n is not 'and').
  4. We may remove hyperlinks within comments.
  5. Please use a genuine email ID and provide your name, to avoid rejection.

You May Also Like