Murugappa group company Carborundum Universal posted a 20 per cent rise in Q1 net profit to Rs 52 crore, on the back of growth across all segments and operations. Consolidated net sales grew by 32 per cent to Rs 465 crore.

The company board has approved a proposal to split the equity shares of the company from the current face value of Rs 2 each to Re 1 each.

All-round growth

In the quarter ended June 30, 2011, Carborundum Universal witnessed growth rates in excess of 25 per cent across all business segments and subsidiaries, both domestic and overseas, particularly Russia and South Africa.

Profit before tax and exceptional income was Rs 80 crore (86 per cent rise over previous year). However, profit after tax represented an increase of only 20 per cent owing to exceptional income from sale of land and building, said the company.

Carborundum Universal is planning a capex of Rs 150 crore for FY11-12. This will go towards enhancing capacity and on new products and capabilities.

For the sake of a cleaner organisational structure, the company plans to bring its Australian and Chinese subsidiary under Cumi International Cyprus. All other subsidiaries (Canada, America, Russia and South Africa) are already present under Cumi International Cyprus.

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