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Murugappa Group Records Highest Ever EBITDA of Rs. 4,065 Cr in FY 2016-17, a 34% Growth Over Previous Year; PBT Grows 59%; Market Capitalisation Surges to $8 Billion | |||||||||||||||||||||||||||||||||||||||||||||||||
Chennai, Tamil Nadu, India Murugappa Group recorded a turnover of Rs. 30, 023 Crores during 2016-17 (last year Rs. 29,395 Crores). Earnings before Interest, Taxes, Depreciation and Amortisation (EBITDA) posted a growth of 34%, at Rs. 4, 065 Crores (last year Rs.3, 032 Crores). Profit before Tax and Extra Ordinary Items was Rs. 2, 973 Crores (last year Rs. 1, 873 Crores), registering a growth of 59%.
Mr. A. Vellayan Executive Chairman, Murugappa Group and Mr. N. Srinivasan, Director, Finance Murugappa Group
A: Company-wise Performance Figures in Rs.Crores
B: Market Capitalisation Market Capitalisation of the listed/unlisted companies of the Group surged by 43% to $8 billion in March 2017 from $5.6 billion a year ago.
C: Highlights
TII and Absolute Specialty Foods Chennai Pvt. Ltd. entered a 50:50 Joint Venture to open bicycle cafés in India under the brand name ‘Ciclo Café’. This initiative is aimed to bring bicycles and lifestyle under one roof and is becoming a preferred destination for people passionate about cycling and fine food. The Board of TII has approved the Scheme of arrangement to demerge the manufacturing and financial services businesses and the same is under implementation. 4. EID Parry (India) Limited merged its subsidiary Parry Sugar Industries Limited with itself effective1st April 2016. 5. Aggregate capital expenditure programmes towards expansion/ debottlenecking / modernising facilities across Group companies were Rs. 398 Crores during the year.
D: Sector highlights for 2016-17 Financial Services Businesses
Cholamandalam Investment and Finance Company Limited CIFCL’s Assets under Management (AUM) registered a growth of 15% to Rs. 34,167 Crores during FY2016-17. With a strong and favourable growth in the commercial vehicle market coupled with the strengthening of dealership networks, CIFCL’s Vehicle Finance disbursements registered a growth of 17% in FY2016-17. Home Equity Disbursements de-grew by 12% in FY2016-17.
CIFCL has revised NPA provisioning to 3 months from 4 months and increased standard asset provisioning to 0.40% from 0.35%, one year ahead of the regulatory requirement. Profit after tax for FY 2016-17 stood at Rs. 719 Crores, a growth of 26% year-on-year.
Capital Adequacy Ratio (CAR) was at 18.64% against the regulatory requirement of 15%. Tier I capital is at 13.61% against regulatory requirement of 10%.
The subsidiaries together made a profit before tax (PBT) of Rs. 7Crores in FY 2016-17 against Rs. 8 Crores in FY 2015-16.
Cholamandalam MS General Insurance Company Limited Gross Written Premium recorded a growth of 28% during FY2016-17 to Rs. 3,133 Crores. The growth was supported by new partnerships entered into during the year. Profit after tax grew by 41% year-on-year to Rs. 208 Crores.
Investment income during the year was Rs. 400 Crores; Investment book size as of end March 2017 (including pool funds) was Rs. 4,905 Crores.
Cholamandalam MS General Insurance Company Limited (a Joint Venture between Murugappa Group and Mitsui Sumitomo) has become the largest entity outside of Japan among the JV companies of Mitsui Sumitomo.
Engineering Businesses Carborundum Universal Limited (CUMI) CUMI reported an increase in consolidated gross sales by 9% to Rs. 2,200 Crores in FY 2016-17 compared to Rs. 2,024 Crores in the previous year. Full year consolidated segmental profitability improved for Abrasives and Ceramics businesses, supported by higher sales volume.
On a consolidated basis, in FY 2016-17, profit after tax increased to Rs. 175 Crores from Rs. 144 Crores.
Abrasives Abrasives division at consolidated level registered a growth of 10%. The sales for FY 2016-17 were Rs. 1,016 Crores compared to Rs. 922 Crores in the previous year. Both Indian and overseas entities had a good growth.
Profit before interest and tax (PBIT) for the year FY 2016-17 increased to Rs. 113 Crores from Rs. 83 Crores, supported by higher volumes from Indian and overseas entities.
Electro minerals Electro minerals division at consolidated level registered a growth of 3%. The consolidated sales for FY 2016-17 were Rs. 769 Crores compared to Rs. 749 Crores of previous year. Indian operations registered a growth; however, sales were marginally lower for the Russian entity.
The profit before interest and tax (PBIT) dropped from Rs. 127 Crores to Rs. 91 Crores, owing to adverse exchange movement of Rouble (RUB) and lower rainfall affecting power generation in captive hydel power plant.
Ceramics Ceramics division registered a growth of 15%. For FY 2016-17 the sales were at Rs. 472 Crores from Rs. 409 Crores of previous year. The standalone industrial ceramics and refractories businesses delivered a good growth.
Profit before interest and tax increased from Rs. 50 Crores to Rs. 70 Crores, driven by higher volumes in both standalone and overseas operations
Tube Investments of India Limited For the year 2016-17, TII’s consolidated gross sales were higher by 4% at Rs. 4,620 Crores as against Rs. 4,434 Crores in the previous year. Profit after tax for the year 2016-17 was Rs. 208 Crores.
Cycles and Accessories The total revenue from Cycles and Accessories division in FY 2016-17 stood at Rs. 1,358 Crores against Rs. 1,491 Crores in previous year, registering a drop of 10% due to lower institutional sales. Trade sales were affected due to demonetisation. Profit before interest and tax for the year was Rs. 36 Crores as against Rs. 79 Crores in the previous year.
Engineering The Engineering division has registered a growth of 14%. The sales volume from Tubes grew by 10% and from Cold Rolled Steel Strips by 7% during the year.
Total revenue for FY 2016-17 was Rs. 2,077 Crores as against Rs. 1,821 in the previous year. Profit before interest and tax for the year was Rs. 146 Crores as against Rs94 Crores in the previous year.
Metal Formed Products The Metal Formed Products division has registered a growth 9%. The sales volume from doorframes, Industrial Chains and Fine Blanked Components grew by 6%, 9% and 5% respectively over the previous year. However, the sales of automotive chains to OEMs were slightly lower than the previous year.
Total revenue for FY 2016-17 was Rs. 1,141 Crores as against Rs. 1,043 in the previous year. Profit before interest and tax for the year was Rs. 92 Crores as against Rs. 86 Crores in the previous year.
Shanthi Gears Limited Shanthi Gears Ltd., a subsidiary company of TII operating in the Industrial Gears Business, registered a growth of 12% in gross sales for the year. Profit aftertax for the year was higher at Rs. 23 Crores against Rs. 18 Crores in the previous year.
Agri-businesses Coromandel International Limited Coromandel International Limited registered consolidated gross sales of Rs. 10,304 Crores in FY 2016-17 compared to Rs. 11,726 Crores in the previous year. Despite challenging business environment due to failure in North East monsoon in some of the Southern states and volatile exchange rates, Coromandel by leveraging its diversified product portfolio, wide market coverage and strong brand presence, improved its performance across the nutrients and crop protection segments.
Consolidated Profit after tax for year ended March 2017 is Rs. 477 Crores as against Rs. 357 Crores of the previous year, registering a growth of 34%.
E.I.D. Parry (India) Limited E.I.D. Parry (India) Limited reported an increase in consolidated gross sales by 15% to Rs. 4,465 Crores in FY 2016-17 compared to Rs. 3,895 Crores in the previous year. Profit after tax for the year 2016-17 was Rs. 302 Crores against loss of Rs. 135 Crores in the previous year. The improved performance is on account of better sugar prices, which have been on an upswing on account of lower sugar production due to drought in Maharashtra, Karnataka and Tamil Nadu.
Sugar Division The consolidated revenue from Sugar division (including Parry sugar refinery private limited) for year 2016-17 was Rs. 4,156 Crores against Rs. 3, 442 Crores in previous year, recording a growth of 21%.
Bio – Products The consolidated revenue from Bio-products division (comprising Bio-Pesticides and Nutraceuticals) for year 2016-17 was Rs. 351 Crores against Rs. 348 Crores in previous year, recording a growth of 1%.
Other Businesses
Coromandel Engineering Company Limited registered a decline in revenues of 74% on account of sluggish market conditions.
Parry Agro Industries Limited registered a marginal growth of 2% in revenues mainly on account of lower crop in South India.
New Ambadi Estates Private Limited (a Company engaged in rubber plantations) reported a decline in revenue by 36%.
Parry Enterprises India Limited (PEIL) reported a 20% growth in revenues at Rs. 156 Crores.
Ambadi Enterprises Limited reported a decline in revenueby3% over the previous year mainly on account of fall in export turnover due to a weak Pound arising out of Brexit.
Profit after tax of the other business was Rs. 98 Crores for the year 2016-17.
E: HR Updates
F: Corporate Social Responsibility
G: Brand initiatives The Group continued to invest in building awareness and engagement among core audiences with the multi-lingual ‘Together Let’s Progress’ campaign. During the year, we also made significant investment in digital campaigns. Our initiatives on social/digital media were well-received and Brand Murugappa was awarded ‘Best Social Media Brand among corporates in the B2B Category by Social Samosa, India’s leading social media thought-influencer.
H: Awards and Recognitions
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.
For more details, please visit www.murugappa.com. |
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