Q3 Results: Carborundum Universal’s Margin Declines On Inability To Pass Price Hikes
Carborundum Universal Ltd. faced margin pressures in the December-ended quarter due to inability to pass price hikes to consumers and higher electricity costs.
“We just could not pass through the big cost-push affect in abrasive business to the consumers as the trading prices were already muted,” said K Srinivasan, its managing director, in an interaction with BloombergQuint. “Also, the average cost of power rose to Rs 6 from 5.50 per unit as our power station in Kerala is still down since the floods (that affected the state last year).”
Key Highlights: (YoY)
- Revenue up 13.4 percent to Rs 693 crore.
- Net profit rose 3.5 percent to Rs 59 crore.
- Ebitda declined 1 percent to Rs 102.9 crore.
- Operating margin at 14.8 percent versus 16.9 percent.