Carborundum Universal (CARBORUNIV) Q3 24/25 earnings summary

Executive summary

• Consolidated Q3 FY25 sales reached INR 1,241 crores, up 9.8% year-over-year, led by Ceramics and Electrominerals, while Abrasives declined slightly.

• Standalone Q3 FY25 sales hit a record INR 728 crores, up 15% year-over-year, driven by Ceramics and Electrominerals.

• Q3 consolidated PAT (excluding exceptional items) was INR 111 crores, flat year-over-year; including exceptional items, PAT dropped to INR 35 crores.

• Standalone PAT for Q3 FY25 was INR 80.6 crores, nearly flat year-over-year.

Financial highlights

• YTD consolidated sales grew 5.5% to INR 3,635 crores; standalone YTD sales grew 8.2% to INR 2,097 crores.

• YTD standalone PAT rose 1.6% to INR 260 crores; consolidated nine-month PAT after exceptional items was INR 264 crores.

• Exceptional item of INR 104.13 crores (provision for VAW’s foreign currency receivables and deposits) impacted consolidated PAT.

• Capital expenditure at consolidated level for nine months was INR 202 crores; debt-equity ratio at 0.03.

Outlook and guidance

• Full-year consolidated sales growth revised to 9%-11%, with a shortfall of INR 200-300 crores expected.

• Abrasives growth guidance lowered to 5%-7% (from 10%), mainly due to AWUKO and RHODIUS performance.

• Ceramics growth now expected at 10%-12% (from 12%-14%), and Electrominerals to be flat or marginally up due to VAW challenges.

• Consolidated PBIT margin expected to drop by 100-120 bps; PAT (excluding exceptionals) projected at INR 450 crores.

• The company continues to monitor the evolving geopolitical situation affecting its Russian subsidiary VAW.