Murugappa Group Carries Out Well In A Hard Year

The Chennai-based Murugappa Group has actually published 11 percent development in its turnover at Rs.26,926 crore in the year ended March 31, 2015, versus Rs.24,350 crore in the previous monetary year. Earnings prior to interest, taxes, depreciation and amortisation (EBITDA) stood at Rs.2,921 crore versus Rs.2,627 crore.

Resolving the annual media fulfill here on Thursday, MM Murugappan, Vice-Chairman, said the group could accomplish a 26 per cent per cent rise in earnings before tax at Rs.1,780 crore against Rs.1,415 crore in a tough year for the market. Mr. Murugappan said the concentrate on operations, money flow, consolidation and better utilisation of capacity and absolutely outstanding efficiency of the whole team of the Murugappa group assisted it to achieve this feat and get ready for the next phase of development.

Significant corporate efforts were undertaken in 2014-15 in group business specifically in Coromandel International, EID Parry (India), Tube Investments of India and Cholamandalam Financial investment and Finance Business, he stated. During the year under reference, Coromandel International published 13 percent increase in earnings despite a deficient monsoon influencing the agriculture sector.

Though it was a tough year for the sugar market, EID Parry reported 26 per cent growth on account of better volumes in sugar and by-products and much better realisation in power.

The TI Cycles department registered a volume growth of 6 per cent driven by efficiency and conventional bikes. The brand-new device, being established at a cost of Rs.95 crore in Punjab, would go on stream in the very first quarter of 2016-17, Mr. Murugappan said. During the very first phase, the plant would have a capability of 1.5 million systems with versatility to end up a range of bikes. The focus would be on efficiency bikes as biking had become an experience, he stated.

Cholamandalam Investment and Finance Company registered a development of 13 per cent in company supported by car finance and home equity. The EBITDA was up by 20 per-cent at Rs.696 crore.

Cholamandalam MS General Insurance coverage Business crossed the Rs.200 crore mark in respect of profit prior to tax with a moderate development in operations due to slow-moving sales of motor vehicles and slow off take of industrial tasks.

Regardless of depressed rubber costs, Ambadi Estates doubled its income while Parry Ago Industries reported 19 per cent drop in sales due to negative weather conditions in South. Coromandel Engineering, for its part, reported a 16 per increase in its revenue backed by cost optimisation and greater sales in the building development department.

Mr. Murugappan said the group spent Rs.229 crore in 2014-15 on different capital expenditure programmes such as expansion, de-bottlenecking of operations and modernisation. Though very carefully optimistic on the present year performance, Mr. Murugappan stated the group was planning a capital outlay of Rs.250 crore for the present year on different plans.

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