Chennai-headquartered Murugappa Group reported modest growth in FY24, following two consecutive years of robust double-digit increases amid a mixed performance by the group companies.
The Group’s turnover reported a rise of about 5 per cent, reaching ₹77,881 crore in FY24, up from ₹74,220 crore in the previous fiscal. In FY23 and FY22, the group reported growth of 36 per cent and 31 per cent respectively after recovering from the pandemic-hit period.
The Group’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) grew 11 per cent to ₹11,554 crore in FY24 (₹10,426 crore). Profit after tax saw a strong increase of 15.2 per cent at ₹7,885 crore (₹6,846 crore).
In FY24, the group’s financial services business performed well, while manufacturing entities had a mixed performance.
Nine entities
Cholamandalam Investment and Finance reported a 49 per cent rise in topline at ₹19,140 crore in FY24, while Cholamandalam MS General Insurance recorded topline growth of 22 per cent at ₹7533 crore.
EID Parry reported a 32 per cent growth in net sales to ₹7,361 crore, and Tube Investments saw a 13 per cent rise in net sales to ₹16,335 crore. However, Carborundum Universal’s revenue was almost flat, growing just 0.6 per cent to ₹4,628 crore, while Coromandel International experienced a 26 per cent decline in net sales, totalling ₹22,007 crore.
The Group’s manufacturing entities generated a Free Cash Flow of ₹1,229 crore, amounting to 31 per cent of their PAT.
The Return on Capital Employed (ROCE) for manufacturing entities declined to 21.3 per cent this year, down from 27.9% in the previous year.
The Return on Equity (ROE) for the Group’s financial services businesses saw a slight improvement, increasing to 19.2 per cent in FY24 (19 per cent).
The market capitalisation of the nine listed companies under the Murugappa Group totalled ₹3,44,626 crore as of March 31, 2024, a significant rise from ₹2,25,320 crore as of March 31, 2023.
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