Murugappa Group posts 23% rise in net profit in FY22, manufacturing grows

Murugappa Group's turnover increased by 31 per cent to Rs 54,722 crore, as against Rs 41,706 crore in 2020-21

Chennai-based Murugappa Group on Thursday reported a 23 per cent rise in net profit at Rs 5,520 crore for the financial year 2021-22, compared to Rs 4,481 crore during the same period in 2020-21.

The group’s turnover increased by 31 per cent to Rs 54,722 crore, as against Rs 41,706 crore in 2020-21. Earnings before interest, taxes, depreciation and amortisation (EBITDA) posted a growth of 30 per cent to Rs 8,343 crore, compared to Rs 6,404 crore the previous year. Manufacturing entities of the group generated a free cash flow of Rs 2,693 crore (compared to Rs 5,049 crore in 2020-21), which stood at 86 per cent of the profit after tax.

During the year, the manufacturing entities have reduced loan outstanding of Rs 939 crore leading to an improvement in total debt equity from 0.23 times as on March 2021 to 0.13 times as on March 2022. In 2021-22, the working capital in comparison to the total loan was at 2.93 times (previous year 1.86 times).

Aggregate capital expenditure programmes towards expansion, modernisation and digital infrastructure facilities across group companies, excluding mergers and acquisitions, were approximately Rs 1,109 crore during the year as compared to Rs 465 crore in 2020-21.

Among the companies, net sales saw considerable increase with Tube Investments of India seeing a rise of 107 per cent, Cholamandalam Investment and Finance Company around 6 per cent rise, Carborundum Universal around 26 per cent, Coromandel International around 35 per cent and Cholamandalam MS General Insurance Company around 9.9 per cent. Similarly, group companies saw rise in EBITDA with Tube Investments of India posting 119 per cent jump, Cholamandalam Investment and Finance Company by 40 per cent, Carborundum Universal by 16 per cent, E.I.D.-Parry (India) by 16 per cent and Coromandel International around 11 per cent.