MIRA INFORM REPORT
|
Report Date : |
18.06.2014 |
IDENTIFICATION DETAILS
|
Name : |
CARBORUNDUM UNIVERSAL LIMITED |
|
|
|
|
Registered
Office : |
Parry House, 43 Moore Street, Chennai – 600001, Tamilnadu |
|
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|
Country : |
India |
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|
Financials (as
on) : |
31.03.2013 |
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|
|
Date of
Incorporation : |
21.04.1954 |
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|
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|
Com. Reg. No.: |
18-000318 |
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Capital
Investment / Paid-up Capital : |
Rs.187.470 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L29224TN1954PLC000318 |
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|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
CHEC00173F |
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|
|
PAN No.: [Permanent Account No.] |
AAACC2474P |
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Legal Form : |
A Public Limited Liability company. The company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Manufacturer and seller of mainly Abrasives, Ceramics
(industrial ceramics, refractories) and Electro minerals. |
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|
|
|
No. of Employees
: |
2000 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (65) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD 27300000 |
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|
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and a reputed company having fine track
record. There is a dip in profit of the company in the year 2013. However, overall financial position of the company is sound and
healthy. Trade relations are reported as fair. Business is active. Payments are
reported to be regular and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
US investment bank
Goldman Sachs has upgraded its outlook on Indian markets as it expects positive
impact of the election cycle.
India’s economy may
grow 4.7 % in the current financial year, lower than the official estimate of
4.9 %, Fitch Rating said. The global rating agency expects the economy to pick
up in the next two financial years.
Global ratings
agency Standard & Poor said increasing focus by India Inc on lowering debt
is likely to improve their credit profiles.
Singapore (1.1
million Indian tourists in 2012), Thailand (one million), the United Arab
Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred
holidays hotspots for Indians. The total figure is expected to increase to 1.93
million by 2017, according to the latest Eurmonitor international report.
There is a $29.34 bn
outward foreign direct investment by domestic companies between April and
January of 2013/14 which has seen some signs of recovery according to a Care
Ratings report.
There are 264 number
of new companies being set up every day on average during 2014. Most of them
are registered in Mumbai. India had 1.38 million registered companies at the
end of January, 2014.
Twitter like
messaging service Weibo Corporation has filed to raise $ 500 million via a US
initial public offering. Alibaba, which owns a stake in Weibo is expected to
raise about $ 15 billion New York this year in the highest profile Internet IPO
since Facebook’s in 2012.
Bharti Airtel has
raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at
a coupon rate of three per cent and maturing in 2020. This is the largest ever
bond offering by an Indian company in Swiss Francs. Bharat Petroleum
Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98
% coupon rate in February.
Indian Oil
Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex
at its almost complete Paradip refinery in Odhisha in three to four years. The
company board is set to consider the setting up of a 700000 tonne per annum
polypropylene plant at an estimated cost at Rs.3150 crore.
Global chief information
officers at gathering in Bangalore in April to meet Indian startups at an event
called Tech50 Watchout for Little Eye Labs-Facebook type deals in the making.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
AA+ (Long Term Rating) |
|
Rating Explanation |
High degree of safety and very low credit
risk. |
|
Date |
14.03.2014 |
|
Rating Agency Name |
CRISIL |
|
Rating |
A1+ (Short Term Rating) |
|
Rating Explanation |
Very strong degree of safety and lowest credit
risk. |
|
Date |
14.03.2014 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION PARTED BY
|
Name : |
Mr. Raja Mukharjee |
|
Designation : |
Finance Manager |
|
Contact No.: |
91-9940142309 |
LOCATIONS
|
Registered Office : |
Parry House, 43 Moore Street, Chennai - 600001, Tamilnadu, India |
|
Tel. No.: |
91-44-25211652/ 25306789/ 42216789/ 30006199 |
|
Mobile No.: |
91-9940142309 (Mr. Raja Mukharje) |
|
Fax No.: |
91-44-25230706/ 42216149 |
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E-Mail : |
mmm@cumiho.rpgms.ems.vsnl.net.in |
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Website : |
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Plant : |
a) 655, Thiruvottiyur High Road, P B No.2272, Tiruvottiyur, Chennai – 600019, Tamilnadu, India b) Plot No.48, SIPCOT Industrial Complex, Hosur - 635126, Dharmapuri District, Tamilnadu, India c) Gopalpur Chandigarh, P.O. Ganga Nagar, Kolkata - 700132, West Bengal, India d) C-4 and C-5, Kamarajar Salai, MMDA Industrial Complex, Maraimalai Nagar Kancheepuram District - 603209, Tamilnadu, India e) F-1/2, F2 - F5, SIPCOT Industrial Park, Pondur “A” Village, Sriperumbudur - 602105. Kanchipuram District, Tamilnadu, India f) K3, ASAHI Industrial Estate, Latherdeva Hoon, Mangalore Jhabrera Road, PO Jhabrera Tehsil Roorkee, Hardwar District – 247667, Uttarkhand, India g) Plot No.77, Bommasandra, Jigani Link Road, Jigani Industrial Area, Jigani, Bengaluru - 526106, Karnataka, India h) PB No.1 Kalamassery, Development Plot P.O, Kalamassery, Ernakulam District - 683109, Kerala, India i) PB No. 3 Nalukettu, Koratty, Trichur District - 680308, Kerala, India j) Bhatia Mines, Bhatia Western Railway, Jamnagar District - 361315, Gujarat, India k) P.B No.2 Okha Port P.O., Jamnagar District - 361350, Gujarat, India l) Plot No.7 and 18, Cochin Special Economic Zone (CSEZ), Kakkanad, Kochi 682037, Kerala, India m) Maniyar Hydroelectric Works, Maniyar P.O. Vadasserikara, Pathanamthitta District - 689662, Kerala, India n) Plot No.47, SIPCOT Industrial Complex, Hosur, Dharmapuri District - 635126, Tamilnadu, India o) Super Refractories Division, Plot No.102 and 103, SIPCOT Industrial Complex (Phase II), Ranipet - 632403, Tamilnadu, India p) Super Refractories Division – Plant 2, Serkaddu Village, Vinnampalli Post, Katpadi Taluk, Vellore District – 632516, Tamilnadu, India q) Plot Nos. 35, 37, 48-51, Adhartal Industrial Estate, Jabalpur - 482004, Madhya Pradesh, India |
DIRECTORS
As on: 31.03.2013
|
Name : |
Mr. M.M. Murugappan |
|
Designation : |
Chairman |
|
Date of Birth/Age : |
57 Years |
|
|
|
|
Name : |
Mr. Subodh Kumar Bhargava |
|
Designation : |
Non-Executive Director |
|
Date of Birth/Age : |
71 Years |
|
|
|
|
Name : |
Mr. T.L. Palani Kumar |
|
Designation : |
Non-Executive Director |
|
Date of Birth/Age : |
63 Years |
|
|
|
|
Name : |
Mr. Sridhar Ganesh |
|
Designation : |
Non-Executive Director |
|
Date of Birth/Age : |
62 Years |
|
|
|
|
Name : |
Mr. Shobhan M. Thakore |
|
Designation : |
Non-Executive Director |
|
Date of Birth/Age : |
65 Years |
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|
|
|
Name : |
Mr. M. Lakshminarayan |
|
Designation : |
Non-Executive Director |
|
Date of Birth/Age : |
66 Years |
|
|
|
|
Name : |
Mr. Sanjay Jayavarthanavelu |
|
Designation : |
Non-Executive Director |
|
Date of Birth/Age : |
44 Years |
|
|
|
|
Name : |
Mr. K Srinivasan |
|
Designation : |
Managing Director |
|
Date of Birth/Age : |
55 Years |
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MANAGEMENT
COMMITTEE: |
|
|
Name : |
Mr. K. Srinivasan |
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Designation : |
Managing Director |
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|
Name : |
Mr. V. Ramesh |
|
Designation : |
President - Abrasives |
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|
Name : |
Mr. P. L. Deepak Dorairaj |
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Designation : |
Senior Vice President-International Business and Exports-Abrasives |
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|
Name : |
Mr. Rajesh Khanna |
|
Designation : |
Senior Vice President - Ceramics |
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|
Name : |
Mr. N Ananthaseshan |
|
Designation : |
Senior Vice President - Electro Minerals Division |
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|
Name : |
Mr. R Rajagopalan |
|
Designation : |
Senior Vice President - Refractories and Prodorite |
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|
Name : |
Mr. M Muthiah |
|
Designation : |
Senior Vice President - Human Resources |
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|
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|
Name : |
Mr. Sridharan Rangarajan |
|
Designation : |
Chief Financial Officer |
|
|
|
|
Name : |
Mr. S Dhanvanth Kumar |
|
Designation : |
Company Secretary |
KEY EXECUTIVES
|
Name : |
Mr. Raja Mukharjee |
|
Designation : |
Finance Manager |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 31.03.2014
|
Category of Shareholders |
No. of Shares |
Percentage |
|
(A) Shareholding of
Promoter and Promoter Group |
|
|
|
|
|
|
|
|
11934656 |
6.36 |
|
|
67241364 |
35.81 |
|
|
79176020 |
42.17 |
|
|
|
|
|
Total shareholding
of Promoter and Promoter Group (A) |
79176020 |
42.17 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
13600515 |
7.24 |
|
|
23100 |
0.01 |
|
|
7510268 |
4.00 |
|
|
42302527 |
22.53 |
|
|
63436410 |
33.79 |
|
|
|
|
|
|
6624446 |
3.53 |
|
|
|
|
|
|
26039433 |
13.87 |
|
|
11310417 |
6.02 |
|
|
1169492 |
0.62 |
|
|
203875 |
0.11 |
|
|
8660 |
0.00 |
|
|
956957 |
0.51 |
|
|
45143788 |
24.04 |
|
Total Public
shareholding (B) |
108580198 |
57.83 |
|
Total (A)+(B) |
187756218 |
100.00 |
|
(C) Shares held by Custodians
and against which Depository Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
187756218 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and seller of mainly Abrasives, ceramics
(industrial ceramics, refractories) and Electrominerals. |
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Products : |
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PRODUCTION STATUS (AS ON 31.03.2010)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Abrasives |
|
|
|
|
Bonded |
Tonne |
19640 |
15328 |
|
Coated |
In million sqm |
17.86 |
9.04 |
|
Industrial
Cloth |
Metre |
4500000 |
2451886 |
|
Ceramics |
|
|
|
|
Industrial
Ceramics |
Tonne |
5870 |
3598 |
|
Refractories |
Tonne |
36450 |
26057 |
|
Electrominerals |
|
|
|
|
Grains |
Tonne |
25340 |
22706 |
GENERAL INFORMATION
|
No. of Employees : |
2000 (Approximately) |
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Bankers : |
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Facilities : |
(Rs.
In Millions)
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Statutory Auditors
: |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
Address : |
No:52, ASV N Ramana Towers, Venkatanarayana Road, T Nagar, Chennai – 600017, Tamilnadu, India |
|
|
|
|
Cost Auditors : |
|
|
Name : |
S Mahadevan and Company Chartered Accountants |
|
Address : |
No.1 ‘Lakshmi Nivas’, K.V. Colony, Third Street West, Mambalam, Chennai - 600033, Tamilnadu, India |
|
|
|
|
Subsidiaries : |
|
|
|
|
|
Holding through
Subsidiary : |
|
|
|
|
|
Joint Ventures : |
|
|
|
|
|
Associate : |
Laserwords Pvt Limited [Ceased to be an associate w.e.f November 2011] |
CAPITAL STRUCTURE
As on: 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
250000000 |
Equity Shares |
Rs.1/- each |
Rs.250.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
187468344 |
Equity Shares |
Rs.1/- each |
Rs.187.470 Millions |
|
|
|
|
|
a) Reconciliation of
the shares outstanding at the beginning and at the end of the reporting period
|
Particulars |
As at 31.03.2013 |
|
|
Equity shares with
voting rights |
No. of Shares |
Value of Shares |
|
Number of shares at the beginning of the year |
187395562 |
187.400 |
|
Add : Shares issued against ESOP scheme during the year before “Share-split” |
– |
– |
|
Total number of
shares before “Share-split” |
187395562 |
187.400 |
|
Number of shares consequent to “Share-split” |
– |
– |
|
Add : Shares issued against ESOP scheme during the year after “Share-split” |
72782 |
0.070 |
|
Total number of
shares outstanding at the end of the year |
187468344 |
187.47 |
b) Terms / Rights
attached to Equity Shares
The Company has only one class of Equity shares having a par value of Re.1/- per share (The Company subdivided one equity share of Rs.2/- each into two equity shares of Re.1/- each on 20th September 2011 after obtaining shareholder’s approval).
Each holder of equity shares is entitled to one vote per share.
For the year ended March 31, 2013, Final dividend of Re.0.75 per share has been proposed by the Board of Directors (previous year Re.1 per share). An interim dividend of Re.0.5 per share was declared at the meeting of the Board of Directors held on February 5, 2013 and the same has been paid (previous year Re.1 per share).
The dividends proposed by the Board of Directors is subject to approval of the shareholders in the Annual General Meeting.
Repayment of capital will be in proportion to the number of equity shares held.
c) Details of shares
held by shareholders holding more than 5% of the aggregate share in the Company
|
Name of Shareholder |
As at 31.03.2013 |
|
|
|
No. of Shares held |
% of holding |
|
Murugappa Holdings Limited |
55432284 |
29.57% |
|
Nalanda India Fund Limited |
16793362 |
8.96% |
|
Face value per share |
Re.1 |
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2013 |
31.03.2012 |
|
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
187.470 |
187.400 |
|
(b) Reserves & Surplus |
|
6657.940 |
6178.540 |
|
(c) Money received against share warrants |
|
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
|
0.000 |
0.000 |
|
Total Shareholders’
Funds (1) + (2) |
|
6845.410 |
6365.940 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) long-term borrowings |
|
11.820 |
558.480 |
|
(b) Deferred tax liabilities (Net) |
|
490.320 |
425.300 |
|
(c) Other long term liabilities |
|
0.000 |
0.000 |
|
(d) long-term provisions |
|
0.000 |
0.000 |
|
Total Non-current
Liabilities (3) |
|
502.140 |
983.780 |
|
|
|
|
|
|
(4) Current
Liabilities |
|
|
|
|
(a) Short term borrowings |
|
761.790 |
409.340 |
|
(b) Trade payables |
|
913.890 |
791.300 |
|
(c) Other current liabilities |
|
955.110 |
1171.660 |
|
(d) Short-term provisions |
|
209.810 |
246.620 |
|
Total Current
Liabilities (4) |
|
2840.600 |
2618.920 |
|
|
|
|
|
|
TOTAL |
|
10188.150 |
9968.640 |
|
|
|
|
|
|
ASSETS |
|
|
|
|
(1) Non-current
assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
|
4102.900 |
3822.350 |
|
(ii) Intangible Assets |
|
38.430 |
30.940 |
|
(iii) Capital work-in-progress |
|
144.340 |
272.540 |
|
(iv) Intangible assets under development |
|
0.000 |
0.000 |
|
(b) Non-current Investments |
|
1246.180 |
1245.680 |
|
(c) Deferred tax assets (net) |
|
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
|
188.950 |
223.040 |
|
(e) Other Non-current assets |
|
0.000 |
0.0000 |
|
Total Non-Current
Assets |
|
5720.800 |
5594.550 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
|
0.000 |
100.000 |
|
(b) Inventories |
|
1799.570 |
1876.880 |
|
(c) Trade receivables |
|
2023.650 |
1847.160 |
|
(d) Cash and cash equivalents |
|
88.720 |
104.230 |
|
(e) Short-term loans and advances |
|
555.410 |
445.820 |
|
(f) Other current assets |
|
0.000 |
0.000 |
|
Total Current
Assets |
|
4467.350 |
4374.090 |
|
|
|
|
|
|
TOTAL |
|
10188.150 |
9968.640 |
|
SOURCES OF FUNDS |
|
|
31.03.2011 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
|
186.940 |
|
|
2] Share Application Money |
|
|
0.000 |
|
|
3] Reserves & Surplus |
|
|
5095.300 |
|
|
4] (Accumulated Losses) |
|
|
0.000 |
|
|
NETWORTH |
|
|
5282.240 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
|
2184.560 |
|
|
2] Unsecured Loans |
|
|
88.840 |
|
|
TOTAL BORROWING |
|
|
2273.400 |
|
|
Long Term Lease
Liability |
|
|
14.250 |
|
|
DEFERRED TAX
LIABILITIES |
|
|
420.580 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
7990.470 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
|
3732.120 |
|
|
Capital work-in-progress |
|
|
153.240 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
|
1640.560 |
|
|
DEFERREX TAX ASSETS |
|
|
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
|
1548.040
|
|
|
Sundry Debtors |
|
|
1772.180
|
|
|
Cash & Bank Balances |
|
|
78.160
|
|
|
Other Current Assets |
|
|
0.000
|
|
|
Loans & Advances |
|
|
508.930
|
|
Total
Current Assets |
|
|
3907.310
|
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
|
934.400
|
|
|
Other Current Liabilities |
|
|
405.060
|
|
|
Provisions |
|
|
103.300
|
|
Total
Current Liabilities |
|
|
1442.760
|
|
|
Net Current Assets |
|
|
2464.550
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
7990.470 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
11008.920 |
11253.730 |
9125.660 |
|
|
|
Other Income |
183.150 |
154.880 |
71.490 |
|
|
|
Income from Work Bills and Services |
0.000 |
0.000 |
337.360 |
|
|
|
TOTAL (A) |
11192.070 |
11408.610 |
9534.510 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
4171.120 |
|
|
|
|
|
Purchases of stock-in-trade |
651.820 |
462.540 |
|
|
|
|
Changes in inventories of finished goods, work-in-process and stock-in-trade |
(9.900) |
(165.380) |
|
|
|
|
Employee benefits expense |
1121.990 |
1076.000 |
|
|
|
|
Other expenses |
3545.530 |
3398.660 |
|
|
|
|
Transfer from Fixed assets revaluation reserve |
(0.680) |
(0.680) |
|
|
|
|
Profit on sale of Land and Buildings |
0.000 |
(10.570) |
|
|
|
|
Profit on sale of Long term Investments (net) |
0.000 |
(139.310) |
|
|
|
|
TOTAL (B) |
9479.880 |
8904.270 |
7287.890 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1712.190 |
2504.340 |
2246.620 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
163.750 |
174.200 |
203.380 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1548.440 |
2330.140 |
2043.240 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
468.090 |
436.210 |
399.880 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1080.350 |
1893.930 |
1643.360 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
335.020 |
427.220 |
400.780 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
745.330 |
1466.710 |
1242.580 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1850.260 |
1841.170 |
1640.260 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
250.000 |
1000.000 |
750.000 |
|
|
|
Tax on Debenture Redemption Reserve |
0.000 |
31.250 |
31.250 |
|
|
|
Dividend Tax |
35.300 |
51.490 |
0.00 |
|
|
|
Dividend |
234.330 |
374.770 |
260.450 |
|
|
|
Final Dividend (previous year)* |
0.020 |
0.110 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
2075.940 |
1850.260 |
1841.170 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
2201.430 |
2414.030 |
1941.800 |
|
|
|
Royalty |
4.540 |
3.890 |
2.510 |
|
|
|
Dividend and Interest |
57.610 |
24.890 |
30.080 |
|
|
|
Management Fees |
16.290 |
40.870 |
29.780 |
|
|
TOTAL EARNINGS |
2279.870 |
2483.680 |
2004.170 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1838.320 |
2156.370 |
1869.920 |
|
|
|
Components and Spare Parts |
55.130 |
49.950 |
19.220 |
|
|
|
Capital Goods |
150.590 |
128.150 |
171.980 |
|
|
TOTAL IMPORTS |
2044.040 |
2334.470 |
2061.120 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
3.98 |
7.83 |
13.29 |
|
|
|
Diluted |
3.97 |
7.81 |
-- |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total
Income |
(%) |
6.66 |
12.85
|
13.03 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
9.81 |
16.83
|
18.01 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
12.28 |
22.41 |
21.51 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.16 |
0.30 |
0.31 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.11 |
0.15 |
0.43 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.57 |
1.67 |
2.71 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
187.400 |
187.470 |
|
Reserves & Surplus |
6,178.540 |
6,657.940 |
|
Net worth |
6,365.940 |
6,845.410 |
|
|
|
|
|
long-term borrowings |
558.480 |
11.820 |
|
Short term borrowings |
409.340 |
761.790 |
|
Total
borrowings |
967.820 |
773.610 |
|
Debt/Equity
ratio |
0.152 |
0.113 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
9,125.660 |
11,253.730 |
11,008.920 |
|
|
|
23.320 |
-2.175 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
9,125.660 |
11,253.730 |
11,008.920 |
|
Profit |
1,242.580 |
1,466.710 |
745.330 |
|
|
13.62% |
13.03% |
6.77% |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info
Agents |
Available in Report
(Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
Yes |
|
10] |
Designation of contact person |
Yes |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
-- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
Yes |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm / promoter involved in |
-- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
UNSECURED LOAN
(Rs. In Millions)
|
Particular |
As on 31.03.2013 |
As on 31.03.2012 |
|
SHORT-TERM
BORROWINGS |
|
|
|
Other loans |
174.370 |
97.500 |
|
|
|
|
|
Total |
174.370 |
97.500 |
ECONOMIC OVERVIEW AND
COMPANY PERFORMANCE
ECONOMIC OVERVIEW
As per the reports of the International Monetary Fund, global economic growth decelerated to 3.2 per cent from 3.9 per cent in the previous year. While US economy and Japan showed improvement, the economic slowdown in the Euro area, emerging market and developing economies including China, India, Russia and Latin America in aggregate was significant enough to adversely impact world output. A multiplicity of developments have lead to this, some of them being the rising uncertainty about the viability of the European Economic and Monetary Union, policies in the major advanced economies not resulting in rebound in confidence, pre-crisis legacy issues, including high household debt constraining private consumption and escalation of financial stress in the euro area periphery which started reaching other economies in the region given the trade and financial linkages.
A significant part of the lower growth in emerging market and developing economies was related to domestic factors, notably constraints on the sustainability of the high pace of growth in these economies and building financial imbalances. Diminishing space for further policy easing, supply bottlenecks and policy uncertainty have also hampered growth in certain economies.
As per the Economic Survey of India published by the Government of India in February 2013, the Indian Economy slowed during 2012-13. The growth rate is estimated at 5 per cent as against the 6.2 per cent of the previous year. The moderation in growth is primarily attributable to weakness in industry (comprising the mining, quarrying, manufacturing, electricity and construction sectors).
The rate of growth of the manufacturing sector was even lower at 1.9 per cent. Growth in agriculture has also been weak in 2012-13 following lowerthan-normal rainfall, especially in the initial phases of the south west monsoon. The growth rate of the services sector also declined to 6.6 per cent in 2012-13 from 8.2 per cent in 2011-12.
COMPANY PERFORMANCE
REVENUES
Despite the overall moderation in the economic activity across the globe including India, the Company’s worldwide revenues recorded only a marginal decline from last year’s levels. While revenue from India declined by 6 per cent, that from rest of the world increased by 4 per cent.
The Ceramics business registered a growth of about 9 per cent. This helped to substantially offset the decline in performance of the Abrasives and Electrominerals businesses.
Sluggish infrastructure investments, capex deferrals by industries, lower customer demand for user industries, competition from low price products, power crisis and tight credit position in trade resulted in weakened demand.
On a standalone basis, the operations which started on a subdued note during the first quarter, turned sharply negative during the third quarter. In the 4th quarter, there was a marginal pick up on a sequential basis. The year’s performance must also be viewed in the light of the fact, that in the previous two years, the Company’s sales recorded a cumulative increase of 50 per cent (from Rs.7381 million to Rs.11052 million) which is one of the highest growth rates witnessed in recent times.
MANUFACTURING
Production volumes were moderated to meet the requirements of customers. Cost reduction initiatives were initiated by use of alternate cost effective raw materials, improvement in raw material consumption and process improvements.
Capital expenditure during the year across all geographies was in the nature of capacity additions for certain product segments, automation, quality enhancement, line balancing and general infrastructure.
During the year, the Company’s wholly owned subsidiary, CUMI International Limited, Cyprus acquired a fused minerals and refractory manufacturing Company in Isithebe, South Africa. The Company has been rechristened as Thukela Refractories Isithebe Proprietory Limited, post acquisition. This acquisition has helped to widen the Company’s product portfolio in the refractory and minerals businesses and also enhanced manufacturing capacity.
ABRASIVES
BUSINESS PROFILE
On a consolidated basis, this business comprises the following major product groups viz. bonded abrasives, coated abrasives (including nonwovens), super abrasives and power tools. The operations are carried out through thirteen manufacturing facilities located in India, Russia, China, Canada and Thailand. The marketing entities located in North America and Middle East support this business in getting an extended customer reach. Abrasives are used in a wide spectrum of industries, the key among them being automobile, engineering, fabrication, wood working, construction, home maintenance and infrastructure.
The Company caters to customers located in over fifty countries through its network of manufacturing facilities and marketing establishments. It is one of the major players in India and Russia.
INDUSTRY SCENARIO
The global industry continues to be led by few players who have a complete portfolio of abrasive products. There are also a large number of players specializing in specific categories of abrasives.
The Indian abrasives industry is catered to by a few large players and also numerous smaller players specializing in select products. Imports, particularly from China, enjoy a sizeable portion of the market. Due to the soft market conditions in many advanced economies, India is becoming a focus market for major global players resulting in intense competition.
In the domestic Russian market there are three major players. The Company is a major player in vitrified bonded abrasives. Imports service a sizeable portion of the market.
There was no major change in the industry structure during the year.
SALES OVERVIEW
Due to the subdued sentiments in the user industries and segments, the Abrasives business recorded a marginal decline in revenues on a consolidated basis but maintained turnover at about last year’s levels on a standalone basis. Revenues for the year were Rs.8092 million on a consolidated basis and Rs. 6073 million on a standalone basis.
In India, the recessionary trends which commenced during the first quarter of the year, turned more acute as the year progressed resulting in dampened market sentiment. Consequently off-take from end user segments and trade channels was weak. The products addressing the channel segment was impacted further by the tight credit position. This was further exacerbated by the slow progress of various infrastructure and industrial expansion projects. However the initiatives in the market place for creating brand visibility, market segmentation and enlarged customer reach, helped the business to ensure that there was no major adverse impact on revenues.
In bonded abrasives, sales of both standard products and custom built products remained flat. However off take of coated abrasives and super abrasives recorded good growth as a result of the retail initiatives and a slew of new products. Sale of non woven abrasives products to large institutional customers was firmly established. The facility has reached peak utilization as a result of the strong order inflow. Sales of super abrasive and other products by Wendt India Limited (the Company’s joint venture) declined.
During the year, sales of power tools continued to grow well despite the weak market momentum and the precarious power situation in Tamilnadu. The product basket has been widened. It may be recalled that the Company had towards the end of last year entered into an arrangement with Metabowerke GmbH, Germany, for distribution of premium power tool products. The business focused efforts to put in place the required infrastructure in terms of warehousing, logistics, feet-on-street, building brand visibility and establishing customer connect for this new product category.
In Russia, performance of the abrasives business declined due to the decrease in off-take from the domestic market. The steady decline in mass manufacturing activity has lead to a gradual shrinkage in the abrasives requirement which has lead to tougher competition amongst various market players. Consequently there was a decline in sales volume. The business has however done well to shore up its market share in a shrinking market.
The operations in China, backed by a new management team recorded a growth of 33 per cent. The sales team has been rebuilt and focused efforts have been taken to address the requirements of original equipment suppliers, distributors and supplies to CUMI India.
MANUFACTURING
In India, one of the key initiatives of the year was on exhaustive implementation of the Total Productive Maintenance (TPM) program. Several abrasives facilities in India were brought under the TPM umbrella and the extent of coverage in each plant made good progress. The initiatives undertaken have helped to enhance overall
equipment effectiveness yielding benefits in terms of enhanced on-time delivery. In the Chinese operations, manpower was rationalized and productivity has been increased.
The business witnessed erosion in margins across all geographies in which it operates. Prices of key input materials increased significantly. Efforts were taken to renegotiate prices of inputs with various suppliers. The steep appreciation in US Dollar, which took the industry by surprise since the first quarter, further compounded the underlying raw material cost increases in respect of the Indian operations. The precarious power situation in Tamilnadu, India impacted the operations of this business as a significant part of its manufacturing for India is being done in this State. Consequently operating profits was severely dented as a result of the overall cost push.
During the year, investments were done to increase capacity in certain mass market products and also certain categories of standard industrial products. This will help the business to address the increased market requirements for these products.
As a result of the lower revenues coupled with cost increases, the abrasives business recorded a decline in profit before interest and tax on a consolidated basis and on a standalone basis.
CERAMICS
BUSINESS PROFILE
As a consolidated entity, the ceramics business has three product groups viz. industrial ceramics, super refractories and anti corrosives. Industrial ceramics business offers alumina and zirconia products of technical ceramic grades addressing wear and corrosion protection, electrical insulation, thermal protection and ballistic protection applications. The super refractories product group supplies fired and monolithic super refractories, refractory fibre and also refractory design and installation services addressing the insulation / thermal resistance
requirements of industries. The refractory fibre and refractory design and installation businesses are addressed through Murugappa Morgan Thermal Ceramics Limited and Ciria India Limited. The anti-corrosives product group offers acid resistant cements, polymer concrete cells and various other products addressing the anticorrosion requirements of industries.
The key user industries for ceramics business are power generation and transmission, coal washeries, grain handling, sanitary tiles and sanitary ware, ballistic protection, cement, non ferrous metals, iron and steel industries, carbon black, insulators, furnace building, glass, petrochemical and construction industries.
The operations are carried out through eleven manufacturing facilities located in India, Australia, South Africa and Russia. The subsidiaries in North America, Middle East, China and South Africa also support this business in getting an extended customer reach. CUMI Australia also provides installation cum service facilities.
The Company is one of the major players in India, Australia and Russia in specific product groups. The Company caters to customers located in over thirty countries.
INDUSTRY SCENARIO
There has been no material change in the ceramics industry structure in India, which is catered to by a few major players. CUMI is a highly respected player in certain market segments.
In Australia, CUMI Australia is one of the major players in the lined equipment and industrial ceramic tiles industry. There are about a dozen players in the industry, most of whom market products that are imported from China and USA.
The refractory industry in Russia is a highly fragmented market with several players. The Company is a small player in the industry.
There was no major change in the industry structure during the year.
SALES OVERVIEW
Revenues of the ceramics business grew by 9 per cent, on a consolidated basis primarily driven by the growth in industrial ceramics. Revenues (excluding captive sales) for the year were Rs.4926.000 millions on a consolidated basis and Rs.3224.000 millions on a standalone basis.
In the Indian operations, industrial ceramics recorded good growth primarily driven by the increased sales of ceramic lined equipment and grinding media. Sales of metallised products and engineered ceramics was maintained at about last year’s levels despite the lower off take from customers in the Indian and overseas markets. To counter the effects of the slowdown and as a derisking approach, the business has started work on developing new customers. Over capacity and squeeze in margins aggravated the weak market trend. In Australia, sale of ceramic products increased by 12 per cent despite stiff competition.
Turnover of the refractories business in India declined due to lower off-take of fired products. The order inflow from the projects segment, particularly glass and ceramics industry, dropped sharply. Sales of anticorrosives registered good growth. This helped to partly offset the lower sales in the fired segment. Sales through channel partners helped to supplement the overall selling effort. Sales of refractory fibre by the Company’s joint venture, grew marginally despite the soft market conditions and the cost increases which hurt price competitiveness. The refractory design and installation services business, which is also addressed through a joint venture, recorded lower sales.
In Russia, nitride bonded silicon carbide refractories continued to perform well registering a good growth over the previous year. Given the encouraging response in the market, the manufacturing capacity has been expanded. Sales of refractories of the newly acquired South African subsidiary was lower than plan as the expected order inflow from a key customer did not materialize. However diligent marketing efforts have been undertaken to widen the customer portfolio and also increase the geographical spread of the customer base.
Sales of anti corrosion products also registered strong growth, particularly in the export markets. The efforts to establish new customer relationships and enter into new geographies, which were commenced last year, yielded good results.
MANUFACTURING
The Company has concluded a technology tie up with reputed refractory makers in Europe for manufacture of high end refractory solutions. The tie-up has helped the Company to widen its spectrum of product offerings and also address new end user segments which were hitherto untapped. Investment in capital equipment have been commenced to manufacture these new categories of refractories.
The new line for manufacture of fibre reinforced plastic (FRP) composites which was completed last year performed well and sales of these products has been very encouraging.
Additional investments in various machinery and equipment were made during the year addressing the needs for added capacity, enhancement in product configuration to meet customer expectation, line balancing, improvement in productivity and new products.
The industrial ceramics plant at Hosur, India and the super refractories plant at Ranipet, India have received the integrated management system certification during the year. TPM initiatives have been commenced in certain plants and would be taken forward during 2013.
Last year, the Company had entered into a joint venture with an international partner for manufacture of ceramic foam based refractory products. Construction of the pilot plant in Kerala, India is progressing and is expected to be completed in 2013-14.
As a result of the operating cost increases, the ceramics business recorded a decline in operating profit before interest and tax on a consolidated basis and on a standalone basis.
ELECTROMINERALS
BUSINESS PROFILE
As a consolidated entity, the major product groups of this business segment are fused alumina (comprising brown and white alumina), silicon carbide, fused zirconia, alumina zirconia and zirconia mullite. The company also manufactures a range of ‘specialities’ like semifriable, Azure-S and plasma powders for niche markets. The operations are carried out through seven manufacturing facilities located in India, Russia and South Africa. Products are sold to customers located in over 40 countries. Key user industries for this business are abrasives, refractories and steel. The business also has captive mines and a captive power plant.
INDUSTRY SCENARIO
In fused alumina, the company is largely a national player with customers based in India. The Indian market continues to be catered by two players. Apart from the domestic players, imported products have a visible share in the market.
In the global electrominerals business, the Company continues to retain its position as one of the reputed manufacturers of silicon carbide and fused zirconia. The silicon carbide industry has been impacted by the adverse developments in the solar power industry in Europe which was emerging as a lucrative segment for this business.
This could see some of the smaller players making an exit. Barring the changes that are happening from the above developments, there was no major change in the industry structure.
SALES OVERVIEW
The electrominerals business recorded revenues (excluding captive supplies) of Rs.6151.000 millions on a consolidated basis and Rs. 1503.000 millions on a standalone basis. The decline in revenues was a result of the difficult market conditions and also the setback in the solar wafering industry. Sluggishness in off-take was witnessed across all product segments.
Sales of silicon carbide by the Russian operations declined. While off-take from the domestic Russian markets improved, exports to the European and other markets declined. Revenues were also impacted by a shift in the product mix to low value products due to market conditions.
The Indian operations witnessed a marked drop in sales primarily on account of lower exports of silicon carbide products to the solar wafering industry and also the slowdown in the key user industries which impacted sales of brown fused alumina and silicon carbide. The business managed to retain its major customers who still continued wafering operations, on the back of highly consistent quality, supported by aggressive pricing. Efforts to identify alternative end uses for speciality silicon carbide products as a longer term initiative are being continued. Sales of ceramic grains has shown good growth. Price realization across product lines was stable during the year under review, except for the silicon carbide products.
Sales of fused zirconia from the South African operations was adversely impacted. Off-take from European customers was sluggish as a result of the financial crisis in the European Union. Increase in production costs leading to higher prices diminished sales opportunities. The initiatives commenced last year to widen customer base and make an entry into new geographies started yielding results. New customer accounts were opened during the year as a result of these efforts.
In the fused minerals operation in South Africa, which was acquired during the second quarter of the year, the process of integrating the operations with the overall Company was taken up. The business has started receiving schedule orders from a key customer. Trial supplies have been made to a few new customers and these have shown promise of maturing into regular orders. Price realization for minerals was low in the served markets.
MANUFACTURING
In Russia, the silicon carbide fusion facilities and the crushing and grading operations were operated to meet the product mix requirements of the market. The Company was able to take advantage of its inherent flexibility in its manufacturing process, to tune production to generate more metallurgical products instead of crystalline products which helped it to mitigate the impact of the market downturn.
The profitability of the Indian operations were significantly impacted by the lower power generation at the captive hydel power plant at Maniyar (Kerala, India). Lower rainfall in Kerala adversely impacted power generation and
consequently the profitability of this operation.
The silicon carbide plant at Koratty received OHSAS certification. Work has been done on increasing operating efficiencies in logistics and procurement.
In South Africa, production levels of the plant at Foskor Zirconia were moderated to adjust to the sluggish off-take from customers and also to reduce inventory levels. Construction of the new tilt furnace for manufacture of bubble zirconia, which was commenced last year, has taken longer than originally planned. The plant has been commissioned towards the end of the year. In the newly acquired fused minerals unit, the production is being streamlined and as such production volume was low.
Operating margins of the business were impacted on account of increase in prices of key inputs like power and calcined alumina. The difficult market situation did not allow price increases to be passed on to customers.
As a result of lower price realization, steep increase in cost of power and also the adverse product mix in the silicon carbide business, the electrominerals business recorded a steep drop in operating profit before interest and tax on a consolidated basis and on a standalone basis.
CONTINGENT LIABILITIES
(Rs. In Millions)
|
Particular |
31.03.2013 |
31.03.2012 |
|
a.
No provision is considered necessary for disputed income tax, sales tax,
service tax, excise duty and customs duty demands which are under various stages
of appeal proceedings as given below : |
|
|
|
i. Income Tax Act, 1961 |
108.800 |
119.020 |
|
ii. Central Sales Tax Act,1956 and Local Sales
Tax laws of various states |
18.470 |
12.990 |
|
iii.
Central Excise Act,1944 |
4.290 |
4.390 |
|
iv.
Service Tax, 1994 |
2.860 |
2.860 |
|
v. Customs Act, 1962 |
- |
1.660 |
|
b.
Outstanding letters of comfort / guarantee given on behalf of subsidiaries |
2640.130 |
2046.610 |
|
c.
Outstanding letters of credit |
170.190 |
175.280 |
|
d.
Outstanding bills discounted |
1.720 |
2.150 |
|
e.
Claims against the Company not acknowledged as debts : |
|
|
|
i. Urban Land Tax |
3.090 |
3.500 |
|
ii. Stamp duty |
1.900 |
1.900 |
|
iii.
Electricity charges |
- |
12.600 |
|
iv.
Claim filed by ship liner towards damages |
14.000 |
14.000 |
|
v. Claim filed before Consumer Dispute
Redressal Forum |
1.000 |
1.000 |
|
vi.
Mining Royalty |
42.800 |
42.800 |
|
|
62.790 |
75.800 |
|
f. Employees demands pending before Labour Courts
- quantum not ascertainable at present |
|
|
|
In
respect of the above demands disputed by the company, appeals filed are
pending before respective appellate authorities. Outflows, if any, arising out
of these claims would depend on the outcome of the decision of the appellate
authorities and the company's rights for future appeals. No reimbursements
are expected. |
|
|
FIXED ASSETS
Tangible Assets
- Land
- Buildings
- Plant and Equipment
- Furniture and Fixtures
- Vehicles
- Vehicles taken on lease
Intangible Assets
- Goodwill
- Trade Marks
- Technical Knowhow
- Software
AS PER WEBSITE
DETAILS
Press Release
CARBORUNDUM
UNIVERSALIS CONSOLIDATED QL NET SALES SEQUENTIALLY UP BY 5%
Consolidated Operating
PBT sequentially up by 79%
Chennai, 30th July 2013: The Board of Directors met
today and approved the results for the quarter ended 30th June 2013.
Consolidated Ql financial
performance
Consolidated
net sales increase by 5% to Rs.5010.000 Millions from Rs.4780.000 Millions, on
a sequential basis. PBIT (excluding exceptional income) increased by 62% from
Rs.330.000 Millions in sequential quarter to Rs.540.000 Millions in the current
quarter. On a quarter on quarter basis, sales grew by 1% and PBIT dropped by
15%.
The
increase in sales on sequential basis and quarter on quarter basis was largely
due to better performance by Electro minerals division. The division witnessed increase
in volumes in silicon carbide business in Russia and Aluminas business in
India. South African subsidiary reported higher volumes compared to the earlier
quarter. Sales also grew for Abrasives segment for both the periods. Ceramic
sales however de grew for the same periods.
Profitability
of Electro minerals business improved both on a sequential and quarter on
quarter basis. Profitability of Abrasives and Ceramics business improved on a
sequential basis but dropped on a quarter on quarter basis. The company
improved standalone debt equity, which is at its lowest.
Earnings
before interest, depreciation and amortization (EBITDA) recorded an increase of
39% (i.e. from Rs.530.000 Millions in sequential quarter to Rs.740.000 Millions
in current quarter) without considering exceptional income of last year. On a
quarter on quarter basis, that was a decrease of 6%.
Profit
before tax and exceptional income was Rs.470.000 Millions - a gain of 79% over
the sequential quarter amount of Rs.260.000 Millions. The profit after tax
increased from Rs.120.000 Millions to Rs.280.000 Millions. On a quarter on
quarter basis, Profit before tax and exceptional income, dropped by 17% and
profit after tax dropped by 23%.
Consolidated Segmental
Operating Performance
Abrasives
Sales
of the abrasives business on a consolidated basis registered a increase of 3%
in a sequential basis. Sales for the quarter was Rs.2060.000 Millions
(Rs.2000.000 Millions for the sequential quarter). On a quarter on quarter
basis, this was an increase of 2%.
Profit before interest and tax on a consolidated basis recorded an increase of 3% i.e. from Rs.196.000 Millions to Rs.203.000 Millions, on a sequential basis. On a quarter on quarter basis, this was a drop of 5%.
The broader business performance of the Abrasives' user industries continues to be moderate. The manufacturing industries continued to have sub optimum levels of production.
Electro Minerals
At a consolidated level, the net sales for Ql were higher at Rs. 195.000 Millions versus Rs. 1670.000 Millions for the sequential quarter. This is a growth of 16%. On a quarter on quarter basis, this was an increase of 6%.
Profit before interest and tax on a consolidated basis recorded a gain from a loss of Rs.71.000 Millions to a profit of Rs. 259.000 Millions, on a sequential basis. On a quarter on quarter basis, the gain was 29%. This was largely due to higher volumes in Silicon carbide business in Russia, lower losses in South African subsidiary and increased Aluminas business in India.
Ceramics
The ceramics segment recorded a 13% drop in sales on a sequential basis (Rs.lll Millions vs. Rs.1280.000 Millions last year). On a quarter on quarter basis, this was a drop of 6%.
Alumina Ceramics business from India, had challenges from market due to project postponements. Refractories sales were lower owing to delayed project orders from user industries. Australian entity registered a lower sales growth.
Profit before interest and tax of the ceramics business on a consolidated basis recorded a drop of 3% from Rs.158.000 Millions to Rs. 153.000 Millions, on a sequential basis. On a quarter on quarter basis, the drop was 38%.
About the Murugappa Group
Founded
in 1900, the INR 225 Billion Murugappa Group is one of India's leading business
conglomerates. The Group has 28 businesses including eleven listed Companies
traded in NSE & BSE. Headquartered in Chennai, the major Companies of the
Group include Carborundum Universal Limited, Cholamandalam Investment and
Finance Company Limited, Cholamandalam MS General Insurance Company Limited,
Coromandel International Limited, Coromandel Engineering Company Limited,
E.I.D. Parry (India) Limited, Parry Agro Industries Limited, Sabero Organics
Limited, Shanthi Gears Limited, Tube Investments of India Limited, and Wendt
(India) Limited.
Market
leaders in served segments including Abrasives, Auto Components, Cycles, Sugar,
Farm Inputs, Fertilizers, Plantations, Bio-products and Nutraceuticals, the
Group has forged strong alliances with leading international companies like
Groupe Chimique Tunisien, Foskor, Mitsui Sumitomo, Morgan Crucible and Sociedad
Quimica y Minera de Chile (SQM). The Group has a wide geographical presence
spanning 13 states in India and 5 continents.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 60.37 |
|
|
1 |
Rs. 102.48 |
|
Euro |
1 |
Rs. 81.87 |
INFORMATION DETAILS
|
Information
Gathered by : |
PRT |
|
|
|
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
DPH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
|
|
|
|
TOTAL |
|
65 |
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors and their relative weights (as
indicated through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely
sound financial base with the strongest capability for timely payment of
interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working
capital. No caution needed for credit transaction. It has above average
(strong) capability for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial &
operational base are regarded healthy. General unfavourable factors will not cause
fatal effect. Satisfactory capability for payment of interest and principal
sums |
Fairly
Large |
|
41-55 |
Ba |
Overall operation is
considered normal. Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial
difficulties seems comparatively below average. |
Small |
|
11-25 |
Ca |
Adverse factors are
apparent. Repayment of interest and principal sums in default or expected to
be in default upon maturity |
Limited
with full security |
|
<10 |
C |
Absolute credit risk
exists. Caution needed to be exercised |
Credit
not recommended |
|
-- |
NB |
New
Business |
-- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.