Carborundum Universal (CUMI) has reported a six per cent rise in its consolidated sales to Rs.498 crore in the first quarter ended June 30, 2012, from Rs.469 crore in the year-ago period.
The earnings before interest, depreciation and amortisation recorded a drop of 22 per cent to Rs.79 crore from Rs.101 crore without considering exceptional income of last year. The profit before interest and taxation (excluding exceptional income) dropped by 28 per cent to Rs. 63 crore from Rs. 87 crore. The company said in a release that sales growth was driven by the performance of Indian and overseas operations. Margins came under pressure owing to rising input costs, strong dollar and a challenging customer market. The ceramics business grew in excess of 15 per cent. The abrasives business grew at 4 per cent and electro minerals business had a flat sales. The profit after tax dropped by 31 per cent to Rs.36 crore from Rs.52 crore.