Abrasives and industrial ceramics maker Carborundum Universal Ltd. (CUMI) reported a 16% increase in standalone net profit for the first quarter ended June to ₹73 crore.
Revenue from operations grew 29% to ₹607 crore. Abrasives accounted for ₹269 crore, while ceramics made up ₹193 crore and electrominerals, ₹179 crore.
Total expenditure rose 29.45% to ₹523 crore. Raw material cost increased 31% to ₹245 crore, the Murugappa group firm said in a regulatory filing.
CUMI incurred capital expenditure of ₹56 crore at the consolidated level. The debt equity ratio was at 0.09. The net cash stood at ₹118 crore.
Step-down susbidiaries
The step-down subsidiary in South Africa, Foskor Zirconia Pty Ltd. (FZL) recorded profit of ₹7.54 crore.
The current ‘difficult international situation’ has created an uncertain environment for the operations of step-down subsidiary Volzhsky Abrasive Works (VAW), Russia, including those arising from international sanctions and territory embargoes. Neither VAW nor its products were covered under the existing sanctions imposed by various territories/ authorities.
The parent firm has made an assessment of the liquidity position of VAW including its ability to continue as a going concern and has also assessed the recoverability and carrying values of its assets and has concluded that no adjustments are required in these financial results, it said in a filing.
