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Murugappa Group Registers an Impressive Growth of 13% in Turnover; EBITDA of 4,663 Cr, a 14% Growth; PBT Grows 18%; Market Capitalization Surges to $10 Billion | ||||||||||||||||||||||||||||||||||||||||||||||||||
Chennai, Tamil Nadu, India Murugappa Group registers a growth of 13% in turnover at Rs. 32,893 Crores during 2017-18 (last year Rs. 29,206 Crores). Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) posted a growth of 14%, at Rs. 4,663 Crores (last year Rs. 4,075 Crores). Profit Before Tax (incl extra ordinary items) were Rs. 3,562 Crores (last year Rs. 3,013 Crores) registering a growth of 18%.
(L to R) Mr. M M Murugappan, Executive Chairman & Mr. Sridharan Rangarajan Group CFO, Murugappa Group
A: Company-wise Performance Figures in Rs. Crores
Note: Previous year’s numbers have been re-grouped, wherever necessary
B: Market Capitalization Market Capitalization of the listed companies of the Group aggregates to $10 billion (Rs. 67,117 Cr) as of 31st Mar 2018.
C: Corporate Initiatives
D: Capital Expenditure Aggregate capital expenditure programmes towards expansion/ debottlenecking / modernising facilities across Group companies were over Rs. 600 Crores during the year.
E: Sector highlights for 2017-18
Financial Services Businesses Cholamandalam Investment and Finance Company Limited (CIFCL) CIFCL’s Assets Under Management (AUM) registered a growth of 25% to Rs.42,879 Crores during FY2017-18. The aggregate disbursements for FY 2017-18 is at Rs. 25,114 Crores, a growth of 35% led by stellar performance in the Vehicle Finance business division, registered a 42% growth over the previous year. Home Equity disbursements grew by 4% in FY 2017-18.
Due to effective credit management and collections, CIFCL’s overall Gross Non-Performing Assets (GNPA) has reduced to 2.94% in FY 2017-18 from 4.66% in the previous year. Profit After tax for FY 2017-18 stood at Rs. 974 Crores registering a growth of 36% year-on-year.
Capital Adequacy Ratio (CAR) was at 18.40% against the regulatory requirement of 15%. Tier I capital is at 13.3% against regulatory requirement of 10%.
The company operates from 873 branches across India.
Cholamandalam MS General Insurance Company Limited (Chola) Chola’s Gross Written Premium recorded a growth of 31% during FY 2017-18 to Rs. 4,103 Crores. Combined Ratio (CoR) has improved to 100.79% in FY 2017-18 from 101.25% in the previous year. Profit Before tax grewby 17% to Rs. 347 Crores.
Retail has been the dominant growth strategy with Motor, Health and Crop insurance contributing over 80% of the premiums with a good mix across metros and Non-metros.
Investment income during the year was Rs.489 Crores; investment book size as of end of March 2018 was over Rs. 6,300 Crores.
The company operates from 90 branches across India.
Engineering Businesses Carborundum Universal Limited (CUMI) CUMI reported an increase in consolidated net sales by 12% to Rs. 2,330 Crores in FY 2017-18 driven by better performance from all major segments. On a consolidated basis Profit After Taxi ncreased to Rs. 220 Crores from Rs. 184 Crores.
Abrasives The division registered a growth of 9%. The net sales for FY 2017-18 were Rs. 1,018 Crores compared to Rs. 938 Crores in the previous year. The Indian operations delivered good growth on account of higher volumes. Aided by buoyancy in revenues and cost reduction projects and others initiatives, Profit Before Interest and Tax (PBIT) for the year FY 2017-18 increased to Rs. 132 Crores from Rs. 113 Crores in the previous year.
Electro minerals The division registered a growth of 18%. The net sales for FY 2017-18 were Rs. 883 Crores compared to Rs. 749 Crores in the previous year. Both Russian and Indian businesses exhibited improved performance. The Profit Before Interest and Tax (PBIT) increased to Rs. 127 Crores in FY 2017-18 from Rs. 91 Crores in the previous year.
Ceramics The division registered a growth of 11%. The net sales for FY 2017-18 were Rs. 502 Crores compared to Rs. 451 Crores in the previous year. Profit Before Interest and Tax increased (PBIT) to Rs. 76 Crores from Rs. 70 Crores, driven by higher volumes in both standalone and overseas operations.
Tube Investments of India Limited (TII) For FY 2017-18, TII’s consolidated net sales were higher by 11% at Rs. 4,789 Crores. Profit After Tax for the year was Rs. 156 Crores as against Rs. 174 Crores in the previous year.
Engineering The division has registered a net sales growth of 24% during the year and Profit Before Interest and Tax (PBIT) for the year was Rs. 175 Crores as against Rs.146 Crores in the previous year registering a growth of 20%. In domestic tubes, TII continue to improve its market share through better quality and service. The sales of Large Diameter Tubes records ahealthy growth.
Cycles and Accessories Net sales of the division for the year dropped by 3%. Profit Before Interest and Tax (PBIT) for the year was Rs. 0.33 Crores as against Rs. 36 Crores in the previous year. The Market condition of the Bicycles segment continues to be challenging. Trade volumes across product segments have declined during the last year. The division’s sales in theinstitution segment grew up marginally. Premium Cycles Segment grew by 29%. This division continues to pursue aggressive cost reduction measures to mitigate the drop in volumes.
Metal Formed Products Net sales of this division, with a product range of door frames, chains and fine blanking products catering to the Auto sector, registered a growth of 11% during the year and Profit Before Interest and Tax (PBIT) for the year was Rs. 102 Crores as against Rs. 88 Crores in the previous year, registering a growth of 16%.
Shanthi Gears Limited Shanthi Gears Ltd., a subsidiary company of TII operating in the Industrial Gears Business, registered a net sales growth of 16% for the year. The net sales for the year were Rs. 214 Crores as against Rs. 184 Crores in the previous year. Profit After Tax (PAT) for the year was at Rs. 29 Crores as against Rs. 23 Crores in the previous year, registering a growth of 27%.
Agri-businesses Coromandel International Limited (CIL) Coromandel International Limited registered a growth of 9% and consolidated net sales stood at Rs. 10,891 Crores. The business has shown an all-round improvement in the performance by increasing its sales and higher capacity utilization, resulting in operational efficiencies. In the Nutrient segment, business has increased its share in the key addressable markets.
Consolidated Profit AfterTax for year ended March 2018 is Rs. 664 Crores as against previous year of Rs. 477 Crores registering a growth of 39%.
E.I.D. Parry (India) Limited (EID) E.I.D. Parry (India) Limited reported a consolidated net sales (excluding Coromandel International Limited), of Rs. 4,569 Crores in FY 2017-18, registering a growth of 5%. The performance of the company has been impacted due to depressed sugar prices on account of higher sugar production in the country than the previous sugar season.
The Company has made a one-time settlement of additional cane price of Rs. 87 Crores for Sugar years 2013-14 to 2016-17 which has been agreed with the farmers registered with the company in Tamil Nadu. Profit After Tax (PAT) for the year 2017-18 was Rs. 28 Crores against Rs. 302 Crores in the previous year.
Other Businesses This business group predominantly consists of Plantations, Floor Covering / Home Textiles, Technical Textiles / Shade Nets and Construction. The net sales of this business group were recorded at Rs. 710 Crores registering a growth of 10%. Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) were recorded at Rs. 208 Crores registering a growth of 39%.
F. HR Updates
G. Corporate Social Responsibility
In addition to the above, during the year, the Group’s manufacturing companies stepped up development initiatives in the area of education, healthcare, sanitation, skill development, environment & sustainability, infrastructure development and community building primarily catering to communities around the plant/office locations.
H. Brand initiatives The Group continued to invest in building awareness and engagement among core audiences with the multi-lingual ‘Together Let’s Progress’ campaign on television and digital media. During the year, the Group increased its investment in digital platforms. In addition to the on-going digital campaigns, a thematic public awareness campaign titled ‘Good Netizen, Good Citizen’ was launched with the aim of raising social awareness on the responsible use of social media and the Internet. The campaign comprising of 6 videos garnered over 16 million views online.
I. Awards and Recognitions The Group Companies have won several awards over the last year, below is a compilation of a few of them:
Safe Harbor Some of the statements in this news release that are not historical facts are forward looking statements. These forward looking statements include financial and growth projections as well as statements concerning our plans, strategies, intentions and beliefs concerning our businesses and the markets in which we operate. These statements are based on information currently available to us, and we assume no obligation to update these statements as circumstances change. There are risks and uncertainties that could cause actual events to differ materially from these forward looking statements. These risks include, but are not limited to, the level of the market demand for the products, the highly competitive market for the types of the products that we offer, market condition that would cause customers to reduce their spending for the products, our ability to create, acquire and build new businesses and to grow existing businesses, our ability to attract and retain qualified personnel, currency fluctuations and market conditions in India and elsewhere around the world, and otherwise not specifically mentioned herein but those that are common to industry.
About Murugappa Group Founded in 1900, the INR 329 Billion Murugappa Group is one of India's leading business conglomerates. The Group has 28 businesses including nine listed Companies traded in NSE & BSE. Headquartered in Chennai, the major Companies of the Group include Carborundum Universal Ltd., Cholamandalam Investment and Finance Company Ltd., Cholamandalam MS General Insurance Company Ltd., Coromandel International Ltd., Coromandel Engineering Company Ltd., E.I.D. Parry (India) Ltd., Parry Agro Industries Ltd., Shanthi Gears Ltd., Tube Investments of India Ltd., TI Financial Holdings Ltd. and Wendt (India) Ltd.
Market leaders in served segments including Abrasives, Auto Components, Transmission systems, Cycles, Sugar, Farm Inputs, Fertilisers, Plantations, Bio-products and Nutraceuticals, the Group has forged strong alliances with leading international companies such as Groupe Chimique Tunisien, Foskor, Mitsui Sumitomo, Morgan Advanced Materials, Sociedad Química y Minera de Chile (SQM),Yanmar & Co. and Compagnie Des Phosphat De Gafsa (CPG). The Group has a wide geographical presence all over India and spanning 6 continents.
Renowned brands like BSA, Hercules, Montra, Mach City, Ballmaster, Ajax, Parry’s, Chola, Gromor, Shanthi Gears and Paramfos are from the Murugappa stable. The Group fosters an environment of professionalism and has a workforce of over 35,000 employees.
For more details, visit www.murugappa.com. |
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