Carborundum Universal (CARBORUNIV) Q4 24/25 earnings summary

Executive summary

• Consolidated sales for FY25 reached INR 4,834 crores, up 4.4% year-over-year, led by ceramics (7.7%), abrasives (3.3%), and electrominerals (1.9%).

• Standalone sales grew 7.3% year-over-year, with strong contributions from electrominerals (10%), ceramics (6.5%), and abrasives (3.9%).

• Profit after tax (PAT) declined to INR 293 crores from INR 461 crores last year, mainly due to VAW sanctions and deferred tax credit reversal at AWUKO.

• Two major exceptional items impacted results: VAW-related sanctions and deferred tax credit reversal at AWUKO.

• Standalone PAT for FY25 was INR 322 crores, down from INR 350 crores last year, mainly due to higher expenses.

Financial highlights

• Consolidated PBIT for FY25 was INR 541 crores, down 13.4% from INR 621 crores in FY24.

• PBIT margin decreased from 13.5% to 11.2% year-over-year.

• Free cash flow as a percentage of PBIT dropped to 22% from 86% last year due to higher working capital and CapEx.

• Return on capital employed (ROCE) at consolidated level was 14.2% (down from 18.5%); standalone ROCE was 16.6% (down from 20.3%).

• Total dividend for FY25: INR 4.00 per share (final INR 2.50, interim INR 1.50).

Outlook and guidance

• FY26 consolidated sales growth expected at 6%-7%.

• Abrasives to grow 5%-6%, ceramics 16%-18%, electrominerals 1%-2% (due to VAW drop).

• VAW sales expected to decline 25%-30% in FY26, impacting profitability by at least INR 100 crores.

• Consolidated PBIT margin may drop by 100-150 basis points in FY26; abrasives margin expected to improve, ceramics and electrominerals margins to decline.

• CapEx planned at INR 300-350 crores for FY26.