Carborundum Universal Ltd's Q3FY25 Quarterly Results

Result Summary

• Carborundum Universal Ltd reported a 2.9% quarter-on-quarter (QoQ) increase in its consolidated revenues for the quarter-ended Dec (Q3FY25). On a year-on-year (YoY) basis, it witnessed a growth of 9.2%.
• Its expenses for the quarter were up by 4.6% QoQ and 12.2% YoY.
• The net profit decreased 67.6% QoQ and decreased 66.4% YoY.
• The earnings per share (EPS) of Carborundum Universal Ltd stood at 1.8 during Q3FY25.

Financial Statments for Q3FY25

Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results

Company Overview

Carborundum Universal Ltd, commonly referred to as CUMI, is a leading manufacturer and supplier in the industrial sector. The company is primarily engaged in the production of abrasives, ceramics, and electro-minerals. Carborundum Universal operates within the broader industrial manufacturing industry, focusing on providing solutions for various applications, including metalworking, construction, and electronics. The company has established a strong presence in both domestic and international markets. As of the latest available data up to October 2023, there have been no major developments within the company that would impact its operational strategy or market position.

Revenue

In the third quarter of the fiscal year 2025 (Q3FY25), Carborundum Universal Ltd reported a total income of ₹1271.83 crores. This represents a quarter-over-quarter (QoQ) increase of 2.9% compared to ₹1235.45 crores in Q2FY25 and a year-over-year (YoY) growth of 9.2% from ₹1165.00 crores in Q3FY24. The consistent revenue growth over the past year reflects the company's ability to sustain its operations and expand its market reach. However, the data provided does not include details on revenue segmentation across different product lines or geographical regions.

Profitability

For Q3FY25, the company reported a significant decline in profitability. Profit Before Tax (PBT) was ₹32.79 crores, showing a sharp decline of 78.2% QoQ from ₹150.64 crores in Q2FY25 and a YoY decrease of 78.6% from ₹153.15 crores in Q3FY24. The Tax expense also fell dramatically to ₹5.81 crores in Q3FY25, an 87.3% decrease QoQ from ₹45.83 crores and an 88.7% drop YoY from ₹51.44 crores. The Profit After Tax (PAT) was ₹37.61 crores, down 67.6% QoQ from ₹116.16 crores and 66.4% YoY from ₹111.98 crores. Earnings Per Share (EPS) followed a similar declining trend, decreasing to ₹1.80 in Q3FY25 from ₹6.10 in Q2FY25 and ₹5.80 in Q3FY24.

Operating Metrics

Carborundum Universal Ltd's total expenses increased to ₹1134.91 crores in Q3FY25, marking a 4.6% rise QoQ from ₹1084.81 crores and a 12.2% increase YoY from ₹1011.85 crores. This upward trend in expenses indicates a rising cost base, which has impacted profitability metrics. The significant disparities between growth in total income and expenses over these periods have contributed to the observed declines in profit margins. The data does not provide further breakdowns or the underlying causes of changes in these operational metrics, such as cost of goods sold, administrative expenses, or other operating costs.