Carborundum Universal smashes records with 7.6% surge in quarterly revenue

Carborundum Universal Limited (CUMI), part of the Murugappa Group, has reported its best-ever quarterly earnings for Q2 of the fiscal year 2024-25, with consolidated sales reaching a record-breaking INR 1,209 crore, reflecting a 7.6% increase from Q2 FY24. The profit after tax (PAT) also rose significantly by 13.7%, totaling INR 116 crore for the quarter. This stellar performance has been driven by impressive gains across all business segments, including abrasives, ceramics, and electrominerals.

Consolidated Financial Highlights for Q2 FY25

The company achieved a total consolidated revenue of INR 1,209 crore, marking its highest-ever quarterly sales. According to Carborundum’s statement, the profit after tax for the quarter climbed to INR 116 crore, a notable rise from the INR 103.9 crore seen in the same quarter of the previous year. This exceptional growth was supported by robust contributions from all key sectors.

Standalone revenue for the second quarter stood at INR 705 crore, reflecting a 9.6% growth compared to the same quarter in FY24. The standalone profit after tax also climbed, reaching INR 86 crore—an increase of 4.4%. The revenue surge was backed by a boost in sales across the abrasive, ceramics, and electrominerals segments, with notable growth of 9.2% in electrominerals, 8.1% in abrasives, and 4.8% in ceramics.

Segment-Wise Performance

Abrasives Division

The abrasives division saw consolidated revenue growth of 6.4%, amounting to INR 543 crore for Q2 FY25, compared to INR 510 crore during the same period last year. The increase was fueled primarily by strong performances from subsidiary entities like Rhodius and Sterling Abrasives. However, consolidated PBIT (Profit Before Interest and Taxes) for the abrasives division dropped to INR 34 crore, a decrease attributed to reduced profitability in certain international operations. Standalone PBIT for abrasives, however, rose 4% to INR 50 crore.

Electro Minerals

Carborundum’s electrominerals division recorded consolidated revenue of INR 402 crore for Q2 FY25, indicating a growth rate of 6.5% from INR 377 crore in Q2 FY24. This increase was driven by higher sales volume and improved price realization, especially in overseas markets. However, the division saw a dip in profitability, with consolidated PBIT falling by 6.4% to INR 58 crore due to higher alumina costs and price pressures caused by increased imports from China.

Ceramics Division

The ceramics segment of the company registered consolidated revenue of INR 280 crore for Q2 FY25, up by 5.5% from the INR 265 crore recorded in the corresponding quarter last year. This segment’s growth was primarily supported by strong market demand in Australia and the U.S. markets. Consolidated PBIT for ceramics rose by 8%, reaching INR 80 crore, supported by cost efficiencies and higher price realization.

Capital Investments and Debt Position

The company invested INR 124 crore in capital expenditure during the first half of FY25, a marked increase from INR 97 crore in the first half of FY24. The debt-to-equity ratio for Carborundum Universal remains healthy at 0.03, indicating a conservative leverage approach, which aligns well with the group’s long-term financial stability objectives.

Recent Acquisitions and Future Outlook

The company has been active in acquisitions and strategic alliances. During the quarter, Carborundum entered into a Purchase Agreement to acquire Silicon Carbide Products Inc. for an estimated value of USD 6.665 million (approximately INR 56 crore). Additionally, the company has subscribed to equity in Gnan Energy Private Limited, securing around 10 MW of capacity from its captive power plant—a strategic move that is expected to bolster Carborundum’s long-term sustainability efforts.

Chairman M. M. Murugappan commented that the company’s strong quarterly performance showcases its strategic commitment to growth across all divisions, supported by a diversified portfolio and market-focused initiatives.