Source Name: Murugappa Group
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Murugappa Group Registers a Robust Growth of 12% in TurnoverEBITDA of Rs. 5,190 Crores, a 12% growth; PAT grows by 18%; Market Capitalisation at Rs. 66,000 Crores | ||||||||||||||||||||||||||||||||||||||||||||||||||
Chennai, Tamil Nadu, India Murugappa Group registers a growth of 12% in turnover at Rs. 36,893 Crores during 2018-19 (last year Rs. 33,079 Crores). Earnings before Interest, Taxes, Depreciation and Amortisation (EBITDA) posted a growth of 12%, at Rs. 5,190 Crores (last year Rs. 4,618 Crores). Profit after Tax was Rs. 2,880 Crores (last year Rs. 2,432 Crores) registering a growth of 18%.
Mr. M. M. Murugappan, Executive Chairman and Mr. Sridharan Rangarajan, President & Group CFO, addressing the Media
A: Company-wise Performance: Figures in Rupees Crores
Note: Previous year’s numbers have been re-grouped/re-stated, wherever necessary
B: Market Capitalisation Market Capitalization of the listed companies of the group aggregates to Rs. 66,000 Crores as of 31st Mar 2019.
C: Major Initiatives
D: Capital Expenditure Aggregate capital expenditure programmes towards expansion/debottlenecking/modernising/digital infrastructure facilities across group companies were over Rs. 750 Crores during the year.
E: Sector highlights for 2018-19
Financial Services Businesses
Cholamandalam Investment and Finance Company Limited (CIFCL) CIFCL’s Assets under Management (AUM) registered a growth of 26% to Rs. 54,279 Crores during FY 2018-19. The aggregate disbursements for FY 2018-19 is at Rs. 30,451 Crores, a growth of 21% led by its Vehicle Finance business division, which registered a 21% growth over previous year. Home Equity disbursements also grew by 21% in FY 2018-19.
Due to effective credit management and collections, CIFCL’s overall Gross Non-Performing Assets (GNPA) has reduced to 2.7% in FY 2018-19 from 3.4% in previous year. Profit after tax for FY 2018-19 stood at Rs. 1,197 Crores registering a growth of 30% year-on-year.
Capital adequacy Ratio (CAR) was at 17.56% against the regulatory requirement of 15%. Tier I capital is at 12.57% against regulatory requirement of 10%.
The company operates from 900 branches across India. The Company transitioned from IGAAP to INDAS during FY 2018-19.
Cholamandalam MS General Insurance Company Limited (Chola MS) Chola MS’s Gross Written Premium recorded a growth of 8% during FY 2018-19 to Rs. 4,428 Crores. Combined Ratio (CoR) has deteriorated to 104.6% in FY 2018-19 from 100.79% in the previous year. Profit after tax was Rs. 179 Crores in FY 2018-19 as against Rs. 243 Crores in the previous year.
Retail has been the dominant growth strategy with Motor, Health and Crop insurance contributing more than 80% of the premiums with a good mix across Metros and Non-Metros.
Investment income during the year was Rs. 538 Crores; Investment book size as of end March 2019 stood at Rs. 7,596 Crores.
The company operates from 90 branches across India.
Engineering Businesses
Carborundum Universal Limited (CUMI) CUMI reported an increase in consolidated net sales by 14% to Rs. 2,656 Crores in FY 2018-19 driven by better performance from all the segments. On a consolidated basis, profit after tax including share of profits from Joint Ventures and Associates increased to Rs. 248 Crores in FY 2018-19 from Rs. 220 Crores in the previous year.
Abrasives The division registered 10% growth in net sales. The net sales for FY 2018-19 were Rs. 1,124 Crores compared to Rs. 1,018 Crores in the previous year. The Indian operations delivered steady growth supported by higher volumes.
The profit before interest and tax (PBIT) for the year FY 2018-19 increased to Rs. 140 Crores from Rs. 132 Crores in the previous year due to increase in sales volume and product mix.
Electro Minerals The division registered 15% growth in net sales. The net sales for FY 2018-19 were Rs. 1,019 Crores compared to Rs. 883 Crores in the previous year. The net sales of the Russian subsidiary grew by 11%; however profits were flat due to adverse impact of exchange fluctuation.
The profit before interest and tax (PBIT) increased marginally to Rs. 128 Crores in FY 2018-19 from Rs. 127 Crores in the previous year.
Ceramics The division registered 20% growth in net sales. The net sales for FY 2018-19 were Rs. 604 Crores compared to Rs. 502 Crores in the previous year. The Indian operations as well as the overseas subsidiaries delivered good growth supported by higher volumes.
Profit before interest and tax (PBIT) increased to Rs. 108 Crores from Rs. 76 Crores, driven by higher volumes in both standalone and overseas operations.
Tube Investments of India Limited (TII) For FY 2018-19, TII’s consolidated net sales was higher by 15% at Rs. 5,464 Crores as against Rs. 4,760 Crores (net of taxes) in the previous year. Profit after tax for the year was Rs. 251 Crores as against Rs. 156 Crores in the previous year.
Engineering The division has registered 26% growth in net sales during the year and Profit before interest and tax (PBIT) for the year was Rs. 254 Crores as against Rs. 175 Crores in the previous year registering a growth of 45%.
Cycles and Accessories Net sales of the division for the year dropped by 5% mainly on account of lower institutional sales. Profit before interest and tax (PBIT) for the year was Rs. 14 Crores as against Rs. 0.57 Crores in the previous year.
Metal Formed Products The division has registered a growth of 16% during the year and Profit before interest and tax (PBIT) for the year was Rs. 125 Crores as against Rs. 93 Crores in the previous year, registering a growth of 33%.
Shanthi Gears Limited Shanthi Gears Ltd., a subsidiary company of TII operating in the Gears Business, registered a net sales growth of 14%. Profit before interest and tax (PBIT) for the year was at Rs. 42 Crores as against Rs. 33 Crores in the previous year.
Agri-businesses
Coromandel International Limited (CIL) CIL registered a growth of 19% and consolidated net sales stood at Rs. 13,159 Crores. The business has made an all-round progress by improving its customer engagement, branding capabilities and furthering its operational efficiencies. During the year, the Company has introduced ten new products in nutrient and crop protection businesses. The Integrated Nutrient Structure continued to support the channel and farmer activation initiatives, improving the Company’s market share in its key operating states.
Consolidated Profit after tax for the year ended March 2019 is Rs. 721 Crores as against previous year of Rs. 691 Crores.
E.I.D.-Parry (India) Limited (EID) EID reported a consolidated net sales, excluding the Coromandel International Limited, of Rs. 3,283 Crores in FY 2018-19, registering a de-growth of 28%. The performance of the company has been impacted due to depressed sugar prices on account of huge domestic sugar production compared to the previous sugar season.
Profit after tax (PAT) for the year 2018-19 was Rs. 79 Crores against Rs. 28 Crores in the previous year.
Other Businesses This business group predominantly consists of Plantations, Floor Covering / Home Textiles, Technical Textiles / Shade Nets, Construction and Risk services. The net sales of this business group were recorded at Rs. 794 Crores registering a growth of 9%. Earnings before Interest, Taxes, Depreciation and Amortisation (EBITDA) were recorded at Rs. 251 Crores registering a growth of 16%.
F. HR Updates
G. Corporate Social Responsibility
During the year, the Group companies continued to drive 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’s increased focus on digital platforms yielded notable results both in terms of following on the social media pages as well in increased brand awareness among the millennial audiences in relevant markets. The multi-lingual ‘Many Brands, One Group’ campaign, continued to be the anchor campaign targeting core audiences.
I. Awards and Recognitions
Below is a compilation of some of the awards won by the Group companies in 2018: Cholamandalam Investment and Finance Company Limited
Cholamandalam MS General Insurance Company
Carborundum Universal Limited (CUMI)
Coromandel International Limited
EID Parry Limited
Parry Agro Industries Limited
Tube Investments of India Limited
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. |
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