CARBORUNIV · Capital Goods
Carborundum Universal Ltd. reported revenue of ₹1,255 cr for October to December 2024, +9.0% on the year and +2.5% on the quarter. It is the highest quarterly revenue in the last 7 quarters on record.
Operating profit (EBITDA) was ₹177 cr, a margin of 14.1%, −249 bps on the year and −183 bps on the quarter. Over the last 7 quarters the margin has ranged from 14.0% to 17.4%, averaging 15.6%. Operating costs grew +12.3%, faster than revenue at +9.0%, so operating profit grew less than sales.
Net profit was ₹38.0 cr, −66.1% on the year and −67.2% on the quarter, with earnings per share of ₹1.83. Profit before other income, one-offs and tax grew faster, at −13.0%; other income, one-offs or tax held the headline back. The tax rate was 13% against an average of 27% over the previous 6 quarters, which lifted profit this quarter.
Capital goods and EPC revenue follows project execution, which makes quarters uneven; the order book and new orders tell more about the year than one quarter does. The quarterly statements do not carry the order book, new orders and working capital; those come with the filing read.
On earnings per share of ₹20.95 over the last four quarters, the stock at ₹1,110.40 trades at 53.0 times trailing earnings.
Written from the quarterly statements. The filing read adds the balance sheet and cash flow, the auditor's review, segment results, one-off items line by line and what management said on the call.
A lower tax rate lifted profit. Is the lower rate going to last?
Effective tax rate 13.0% against 26.8% over the previous quarters, worth about ₹5.9 cr of profit.
Source: Quarterly statements
Operating margin slipped on the year.
EBITDA margin 14.1%, −249 bps on the year (−183 bps on the quarter).
Source: Quarterly statements
Could not run on this quarter: Exceptional items that recur, Cash behind the profit, Receivables against sales, Inventory against sales, Borrowing while holding cash, Auditor's review or audit report, IPO money used as stated, Related-party transactions, Exits, postponements, restatements, Promoter pledges and allotments, Earlier promises against delivery, When the results were filed. Most need the filing read (balance sheet, cash flow, auditor, disclosures).
Net profit a year ago, each driver's change, and net profit now. Blue added profit, red took it away.
| Q2 FY24 | Q3 FY24 | Q4 FY24 | Q1 FY25 | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | ₹1,146 cr | ₹1,151 cr | ₹1,201 cr | ₹1,198 cr | ₹1,224 cr | ₹1,255 cr | ₹1,217 cr | ₹1,219 cr | ₹1,298 cr | ₹1,291 cr | ₹1,398 cr | ₹1,427 cr |
| YoY | — | — | — | −0% | +7% | +9% | +1% | +2% | +6% | +3% | +15% | +17% |
| EBITDA margin | 14.7% | 16.6% | 17.4% | 16.2% | 15.9% | 14.1% | 12.0% | 9.9% | 12.0% | 12.2% | 10.3% | 9.5% |
| Other income, % of PBT | 21% | 15% | 14% | 12% | 14% | −179% | 17% | 31% | 20% | 19% | — | 46% |
| Exceptional items | — | — | — | — | — | — | — | — | — | — | — | — |
| Tax rate | 30% | 31% | 21% | 27% | 28% | 13% | 71% | 30% | 34% | 35% | — | 33% |
| Net profit | ₹104 cr | ₹112 cr | ₹143 cr | ₹115 cr | ₹116 cr | ₹38.0 cr | ₹30.0 cr | ₹60.0 cr | ₹74.0 cr | ₹73.0 cr | −₹40.0 cr | ₹80.0 cr |
| YoY | — | — | — | −3% | +12% | −66% | −79% | −48% | −36% | +92% | −233% | +33% |
| Core profit YoY | — | — | — | +17% | +19% | −13% | −44% | −58% | −35% | −24% | −16% | +8% |
| EPS | ₹5.36 | ₹5.86 | ₹7.09 | ₹5.94 | ₹6.09 | ₹1.83 | ₹1.53 | ₹3.25 | ₹3.91 | ₹3.99 | −₹0.92 | ₹4.01 |
| Flags | · | · | · | ✓ | ✓ | 1 | 1 | 2 | 1 | 1 | 1 | 2 |
Each quarter is read with the same rules. Balance-sheet and cash checks run on half-year and annual quarters; filing-read checks run where a read exists.
Carborundum Universal Ltd. reported revenue of ₹1,255 cr (+9.0% on the year) and net profit of ₹38.0 cr (−66.1% on the year) for October to December 2024.
Profit before other income, exceptional items and tax moved −13.0% on the year, against −66.1% for reported profit.
1 check raised a question: A lower tax rate lifted profit. Is the lower rate going to last?
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