CARBORUNDUM UNIVERSAL DECLARES DIVIDEND OF ₹2.50, NET PROFIT DIPS 4% IN Q4

Abrasives and industrial ceramics maker Carborundum Universal Ltd on Friday (May 3) reported a 4.2% year-on-year (YoY) dip in net profit at ₹142.6 crore for the fourth quarter that ended March 31, 2024.

In the corresponding quarter, Carborundum Universal posted a net profit of ₹148.8 crore, the company said in a regulatory filing. The company's revenue from operations increased 0.1% to ₹1,201.2 crore against ₹1,199.8 crore in the corresponding period of the preceding fiscal.

At the operating level, EBITDA increased 10% to ₹209.4 crore in the fourth quarter of this fiscal over ₹190.3 crore in the year-ago period. The EBITDA margin stood at 17.4% in the reporting quarter compared to 15.9% year on year. EBITDA is earnings before interest, tax, depreciation, and amortisation.

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The consolidated sales for FY24 were at ₹4,628 crore, which were lower compared to last year mainly due to the depreciation of the rouble against the Indian rupee against the FY23 average rate. Excluding the exchange rate impact, the growth is at 7%.

Free cash flow at the consolidated level for FY24 was 86% of profit after tax, which was 33% during FY23. The consolidated sales for the quarter ended March 31, 2024, was at ₹1,183 crore. This is a growth of 4.7% over Q3 of FY24 and is flat compared to the corresponding period of last year.

The debt-equity ratio at the consolidated level was 0.04. Cash and cash equivalents net of borrowings were at ₹442 crore at the end of FY24 against ₹166 crores at the end of FY23. The capital expenditure incurred during the year 2023-24 was ₹219 crore at the consolidated level.

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The directors have recommended a final dividend of ₹2.50 (250%) per equity share of a face value of ₹1 for the year ended March 31, 2024. The dividend warrants, upon approval of the final dividend by the shareholders at the 70th annual general meeting, will be posted by August 21, 2024.

The results came after the close of the market hours. Shares of Carborundum Universal Ltd ended at ₹1,447, down by ₹60.85, or 4.04%, on the BSE.

2024-05-03T14:47:18Z dg43tfdfdgfd