Carborundum Universal Ltd has reported a 79% year-on-year decline in its Q4 FY25 net profit, falling to ₹30 crore, compared to ₹142.6 crore in the same period last year.
Revenue Growth and Margin Pressure
Despite the profit slump, revenue rose marginally by 1.3% YoY, reaching ₹1,217 crore, up from ₹1,201 crore in Q4 FY24. However, higher input costs and muted operational efficiency dented margins, leading to a 30.3% drop in EBITDA, which stood at ₹146 crore, compared to ₹209.4 crore last year.
The EBITDA margin narrowed sharply to 12%, down from 17.4% a year earlier, reflecting elevated raw material and energy costs.
Dividend Announcement
Carborundum Universal’s Board of Directors has recommended a final dividend of ₹2.5 per share, bringing the total dividend payout for FY25 to ₹4 per share, including the ₹1.5 interim dividend paid in March.
Stock Performance and Market Sentiment
Ahead of the results announcement, Carborundum Universal’s shares rose 3.6%, closing at ₹998.40 per share on the BSE.
Future Outlook
Despite the profit decline, the company remains optimistic about long-term growth, focusing on cost optimization and operational efficiency to navigate market challenges.
With strategic investments in abrasives, ceramics, and electro-minerals, Carborundum Universal aims to strengthen its position in the engineering, automotive, and manufacturing sectors.
