Q1 consolidated PAT of CUMI down

Carborundum Universal Ltd (CUMI), part of the Murugappa Group, reported a consolidated profit after tax (PAT) of ₹60 crore for the quarter ended June 30, 2025, a sharp 48% decline from ₹115 crore in the corresponding quarter last year.

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Consolidated revenue for the quarter stood at ₹1,207 crore, registering a modest year-on-year growth of 1.9% from ₹1,184 crore in Q1 FY25. While the Ceramics and Electro Minerals segments grew by 11.1% and 6.3%, respectively, the Abrasives segment declined by 8%, according to a statement.

On a standalone basis, the company’s PAT rose to ₹145 crore, compared to ₹93 crore in the same quarter last year. The surge in standalone profit was aided by a one-time dividend income of ₹68 crore received from a subsidiary.

Standalone sales grew by 5.2% year-on-year to ₹698 crore, driven by growth of 10% in the Ceramics segment and 12.3% in Electro Minerals. However, the Abrasives business saw a decline of 5.5%.

Free cash flow (FCF) generation was robust during the quarter. Consolidated FCF stood at 98% of PAT, significantly higher than the 37% recorded in Q1 FY25. The Standalone FCF/PAT ratio also improved to 104%, compared to 47% a year ago.

Capital expenditure at the consolidated level amounted to ₹64 crore during the quarter. The company’s financial position remained strong, with a low debt-equity ratio of 0.05.

The company also announced that Sushil Kishor Bendale would be stepping down as the Chief Financial Officer and Key Managerial Personnel (KMP) effective close of business hours on September 26, 2025, to pursue opportunities outside the company.

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