Carborundum at new high

Carborundum Universal is right there among the top three gainers on the BSE since the opening bell today; opening almost 3.5% higher at Rs.1145.05, the stock went on to hit a new 52-week high at Rs.1182.55, up 6.5%.

The market has given a big thumbs up to the company’s earnings for Q4 and FY23.

For Q4FY23, the abrasives and industrial ceramics maker’s consolidated net profit more than doubled (YoY) at Rs.149 crore on a 38% jump in net revenue at Rs.1200 crore. Of this, almost 44% came from abrasives, 22% from ceramics and balance 34% from electro minerals.

The earnings also included a financial gain of Rs.25 crore representing reversal of liability recognised towards fair value changes of a financial instrument availed by a stepdown subsidiary, consequent to settlement of its bank borrowings.

The company ended FY23 with a 40% increase in consolidated sales at Rs.4601 crore,contributed by strong performance across all business segments and sales of Rs.673 crore from recently acquired subsidiaries viz., Awuko, Rhodius and Pluss. Profit after tax and non-controlling interest grew by 24% to Rs.414 crore.

The capital expenditure incurred during the year 2022-23 was Rs.294 crore while debt equity ratio at the consolidated level was 0.08. Cash and cash equivalents including deposits with tenure exceeding 3 months net of borrowings was at Rs.166 crore.