How A Trade War Can Be A Boon For Carborundum Universal
The concerns of a trade war brewing between the U.S and China may come as a blessing in disguise.
The concerns of a trade war brewing between the U.S. and China may come as a blessing in disguise for Carborundum Universal Ltd. That’s because it gives them a better chance at exporting more to the U.S.
“It (trade war) would actually be beneficial. As it is, today there is a 10 percent duty on mineral imports from China, which means that the U.S. is trying to buy more from us,” Managing Director K Srinivasan told BloombergQuint in an interaction. “And if it goes to 25 percent then there will be more buying from India.”
The ceramics-to-electro minerals producer said that a “large part” of the sales in most of its verticals is actually happening outside in India in Europe, U.S. and Australia. And the prospect of a trade war only increases the scope of exports.
We don’t want to be seen as benefitting from some other wars but there are bigger opportunities and greater chances of doing more export to the U.S. going forward.K Srinivasan, Managing Director, Carborundum Universal
Key Highlights (YoY)
- Revenue up 12.3 percent to Rs 659.6 crore.
- Net profit rose 17 percent to Rs 64.8 crore.
- EBITDA up 2.5 percent to Rs 108.4 crore.
- Margin fell to 16.4 percent from 18 percent.
Watch the full interaction here: