Carborundum Universal has reported an 83 per cent drop in net profit at Rs 8 crore for the quarter ended December 31, 2012, against Rs 47 crore registered in the similar previous period.
Net sales dropped by 9.5 per cent to Rs 444 crore (Rs 490 crore). Profit before tax and exceptional income was Rs 14 crore — a drop of 81 per cent over the previous year’s Rs 71 crore.
The company’s board has recommended an interim dividend of Rs 0.50 per share. According to a company release, the drop in sales was largely caused by poorer performance by the electro-minerals division, which. witnessed a drop in volumes in the silicon carbide businesses in Russia and India.
“The South African subsidiary reported the lowest volumes ever, owing to deferment of orders by customers on the hope of expected drop in raw material prices,” it added.
Sales also dipped for the Abrasives and Ceramics segments. Profitability of all the businesses was under pressure. However, the company managed its working capital well and repaid loans to improve consolidated debt equity, it says. Sales of the abrasives business dropped 4 per cent, at Rs 198 crore (Rs 207 crore). Electro Minerals sales were lower, at Rs 132 crore (Rs 168 crore). And the ceramics segment registered a 2 per cent drop in sales at Rs 119 crore (Rs 121 crore).