The Russian subsidiary of Carborundum Universal Ltd. (CUMI), Volzhsky Abrasive Works (VAW), nor its directors or workers are below any sanctions, CUMI’s director finance and technique Sridharan Rangarajan has mentioned.
“We started the year in February 2022 with a conflict between Russia and Ukraine and economic sanctions were imposed on large parts of Russian economy, businesses, banks, and individuals,” he famous throughout a current earnings name. “This disturbed the entire world in terms of increasing inflation, higher energy and food prices… supply shocks and many more.”
Asserting that the warfare had not impacted VAW a lot, he mentioned the workforce had managed danger nicely and brought appropriate actions to mitigate them. VAW was guaranteeing well timed assortment from its clients with no problem, he added.
Suitable logistics preparations to Europe, India, and different geographies, complying with all laws had been made and there had been no impression on operations, with put in capacities being utilised on the identical stage as earlier than the warfare, Mr. Rangarajan mentioned.
The unit’s high line and web revenue had grown in double digits and VAW continued to be debt free and having sufficient liquidity to handle the enterprise as nicely. The quantity of share, which was usually about 45%, moved as much as 58%.
The outlook for the present fiscal stays constructive as demand was on an growing development, however there could be strain on sustaining realisation at present ranges, contemplating softening of the commodity worth globally, he added.
