The conversion fee of Rouble to Indian Rupee throughout H1 of FY23 was 1.24 and in H1 of FY24, it stood at 0.94 whereas the trade fee remained the identical.
| Photo Credit: Company web site
Carborundum Universal Ltd.’s (CUMI) Russian subsidiary Volzhsky Abrasive Works (VAW) posted contraction in gross sales in rupee phrases within the first half of FY24 on account of a weak Russian Rouble, mentioned CUMI Managing Director Sridharan Rangarajan.
“It is important to bring the perspective of war here,” Mr. Rangarajan mentioned. “VAW, our Russian subsidiary, grew in H1 in Rouble terms 24% (consolidated basis). However, in Rupee terms, this turned out to be a de-growth of 6%,” he mentioned throughout an earnings name.
According to him, the conversion fee of Rouble to Indian Rupee throughout H1 of FY23 was 1.24 and in H1 of FY24, it stood at 0.94 whereas the trade fee remained the identical. The total progress of CUMI in H1 could be within the vary of 9.6%-10%.
He additionally identified that VAW’s efficiency had been ‘good’ in native foreign money phrases and delivered its highest-ever quarterly gross sales of two.5 billion Roubles in Q2 towards 1.86 million Rouble. Also, in H1 foundation gross sales grew by 24% to Rouble 4.9 billion.
Operations have been operating nicely and there had been a rise in gross sales quantity in contrast with final 12 months — 4% in silicon carbide, 18% in abrasives and 10% in refractories. Also, value realisations have been higher in contrast with the earlier years, he mentioned.
“When converted to INR, the story looks a little different and shows downward performance because of a stronger Rouble during Q2 of the last year where it was at one Rouble equivalent to 1.33, whereas it has become much weaker at 1.01 in Q1 FY24 and 0.88 in Q2 FY24.”
“We delivered a profit of Rouble 418 million, same as during Q1 of the current year against Rouble 236 million during Q2 over the last year,” he mentioned.
Stating that VAW was capable of accumulate all its receivables, he mentioned it continued to be debt-free and the outlook remained secure and optimistic.
Meanwhile, South African subsidiary Foskor Zirconia posted decrease gross sales on postponement of orders by prime three clients and value stress from Chinese provides.
In FY24, CUMI expects its German arm Awuko Abrasivess to submit about €2.5 million in losses and obtain breakeven by FY25.
On standalone books, CUMI had a complete debt of ₹23 crore and on consolidated foundation it was ₹140 crore in contrast with ₹178 crore as of June 2023, mentioned CFO P. Padmanabhan.
CUMI had incurred a capex of ₹97 crore to date on the consolidated stage and for the complete 12 months, it will be ₹260-280 crore towards ₹300 crore as per earlier forecast.
CUMI stays a debt-free firm. CUMI’s free money era is superb. The total efficiency of the corporate in H1 is sweet. Volume and value progress is sweet in Refractories, Ceramics and Electrominerals. Major parts of the Abrasive enterprise, quantity progress is superb, Mr. Rangarajan mentioned.
“CUMI’s standalone growth could be in the range of 10%-12% against earlier forecast of 15%. Consolidated could be in the range of 5% against the earlier forecast of 10%, largely because of the exchange impact of Rouble,” he mentioned.
