Despite a good set of earnings for Q1FY22, profit booking by punters pushed down the stock price of Carborundum Universal. From its close of yesterday at Rs.707.20, it opened at Rs.707 and soon fell to Rs.689.50, going down over 2%. Though it has recovered a bit, it is trading in the red at Rs.701 levels.
YoY, the lower base effect was at with consolidated net revenue coming in at 59% (YoY) higher at Rs.706 crore while net profit was at Rs.78, up over 4-times. All the three segments – abrasives, ceramics and electrominerals did well with electrominerals contribution to topline and profit being the highest.
At the end of Q1, the company had spent Rs.29 crore on capital expenditure. The debt equity ratio was 0.02. Cash and cash equivalents including deposits with tenure exceeding 3 months net of borrowings was at Rs.662 crore.