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The Murugappa group reported strong double-digit growth for the second year in a row in the post-pandemic phase with its topline crossing ₹70,000 crore in FY23.
The group’s total turnover rose 36 per cent to ₹74,220 crore in 2022-23 (against ₹54,648 crore in FY22). In FY22, the group recorded a growth of 31 per cent. In FY21, it recovered from the pandemic impact and posted 9.5 per cent growth in topline.
For FY23, it reported a 24 per cent increase in group PAT at ₹6,846 crore (₹5,520 crore in FY22). EBITDA saw an increase of 25 per cent at ₹10,424 crore (₹8,343 crore).
Barring E.I.D Parry, all other group companies reported strong topline growth in the range between 27 per cent and 55 per cent.
Group companies’ growth
Coromandel remains the largest company in the group by net sales at ₹29,587 crore in FY23, an increase of 55 per cent over FY22. Tube Investments recorded a topline growth of 20 per cent at ₹14,431 crore, while Cholamandalam Investment and Finance reported a 27 per cent rise in topline at ₹12,884 crore. Carborundum Universal and Cholamandalam MS General Insurance reported topline growth of 40 per cent (at ₹4,601 crore) and 28 per cent (at ₹6,156 crore) respectively. EID Parry’s net sales fell 28 per cent at ₹5,584 crore.
The group companies’ EBITDA growth was in the range between 24 per cent and 123 per cent for FY23.
The return on equity of the Financial Services businesses improved to 19.0 per cent from 17.8 per cent in the previous year. Return on Capital Employed by the Manufacturing Entities improved to 28.1 per cent from 26.0 per cent.
Manufacturing entities of the Group generated a free cash flow of ₹829 crore, which stood at 22 per cent of their PAT.
Total debt equity remained nearly constant compared to the previous year (0.12 times as on March 31, 2023, vs 0.13 times as on March 31, 2022). The working capital in comparison to the total loan is at 3.85 times (previous year 2.93 times) in manufacturing entities, said a company statement.
In FY23, the group companies incurred a total capex of ₹1,581 crore towards expansion/ debottlenecking/ modernising / digital infrastructure facilities, excluding M&A.
The market capitalisation of the 10 listed companies of the group aggregated to ₹2,25,320 crore as of March 31, 2023 (against the previous year’s ₹1,78,412 crore).
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