Carborundum Universal net falls 30.82 per cent in June quarter

CHENNAI: Carborundum Universal, part of the $ 4.4 billion Murugappa Group, today reported a 30.82 per cent decline in net profit at Rs 38.42 crore for the quarter ending June 30, 2012.

The net profit of the company stood at Rs 55.54 crore during the same period of last year, the Chennai-based company said in a statement.

The total income from operations in the reported quarter rose to Rs 503.08 crore from Rs 473.72 crore registered during the same period last year.

The growth in sales were driven by the performance of both the Indian and overseas operations, the statement said, adding "margins came under pressure owing to rising input costs, strong dollar and a challenging customer market".

The ceramics business segments recorded growth rates in excess of 15 per cent while the abrasives business grew at four per cent and electro minerals business had a flat sales.

Profitability of both abrasives and electro minerals came under pressure. The ceramics business witnessed an increase in profit, it said.

The company said its wholly owned subsidiary CUMI International Ltd has acquired the entire share capital of RHI Isithebe, South Africa.

Shares of the company today closed at Rs 144.80 apiece on the BSE, down 2.62 per cent over the previous close.