Carborundum grows net by 68 percent in 2010-11

Chennai, May 2 (IANS) Abrasives major Carborundum Universal (CUMI) closed fiscal 2010-11 with sales and net profit growth of 25 percent and 68 percent, respectively, over the previous year, the company said Monday.

Last year, CUMI registered a consolidated turnover and net profit of Rs.1,601 crore and Rs.171 crore, respectively, up from Rs.1,280 crore and Rs.102 crore, respectively, earned during 2009-10.

The company board, approving the results Monday, has recommended a final dividend of Re.1 per equity share of Rs.2 each, the company said in a statement.

In February this year an interim dividend of Rs.1.50 has been paid, making a total of Rs.2.50 for the year.

Owing to the buoyancy in the Indian and Russian markets and the revival of the US and Canadian markets, the company's abrasive sales totalled Rs.699 crore.

According to CUMI, the Chinese operations stabilised since the de-merger last year from a joint venture to an independent subsidiary with focus on thin wheel and combination stone requirement of the Indian and Russian markets.

CUMI's second major business segment - electro minerals - contributed Rs.598 crore to the topline last fiscal while that of ceramics division was Rs.348 crore.

Silicon carbide sales of Volzhsky Abrasive Works in Russia recorded a jump of 21 percent.

The revival in certain segments of the European markets helped to perk up demand, particularly from overseas customers, the statement added.

According to CUMI, both the high alumina ceramics business and the super refractories businesses performed well during the quarter.

CUMI, with a view to rationalise the holding structure, transferred its holdings in its subsidiaries in the US, Canada and Middle East to its wholly-owned subsidiary in Cyprus.