The Murugappa Group has announced a notable 15.2% increase in its profit after tax for the fiscal year ending March 31, 2024, reaching an impressive Rs 7,885 crore. This marks a significant rise from the previous year’s profit after tax of Rs 6,846 crore. Additionally, the conglomerate’s total turnover for the same period saw a growth of 4.9%, climbing to Rs 77,881 crore, up from Rs 74,220 crore the year before.
The Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) demonstrated a substantial increase of 10.8%, climbing to Rs 11,554 crore from the Rs 10,426 crore recorded in the previous fiscal year. This significant growth highlights the company’s enhanced operational efficiency and profitability during the period.
According to a statement released on Monday, the company reported a slight improvement in the Return on Equity (ROE) of its financial services sector, which increased marginally to 19.2% from 19% in the previous fiscal year. Conversely, the Return on Capital Employed (ROCE) for the manufacturing entities showed a decline, falling to 21.3% from 27.9% in the prior year.
The manufacturing arms of the Group generated a free cash flow of Rs 1,229 crore, which constituted 31% of the reported profit after tax. The capital expenditure for the year was significantly elevated at Rs 3,129 crore, marking a substantial increase from the Rs 1,592 crore spent the previous year.
This expenditure was directed towards various projects including expansion, debottlenecking, and infrastructure improvements across the group’s diverse companies. Among the notable developments, Coromandel International Ltd inaugurated its state-of-the-art Sulphuric Acid plant in Vishakapatnam, investing Rs 400 crore to enhance its backward integration capabilities.
This new facility will boost the Sulphuric acid production capacity to 11 lakh tonnes per annum, up from the previous 6 lakh tonnes per annum. Cholamandalam Investment and Finance Company Ltd made a strategic acquisition of 4.67 acres of land from DLF Offices Chennai Pvt Ltd for Rs 735 crore in Chennai.
E.I.D. Parry (India) Ltd, a prominent sugar manufacturer, launched a new 120 kilolitres per day distillery at its Haliyal facility in Karnataka, which began commercial operations in May. CG Power and Industrial Solutions Ltd, a subsidiary of Tube Investments of India Ltd, embarked on various capacity expansion initiatives during the financial year.
This included enhancements across low tension motors, switch gears, large industrial machines, and power transformer segments with an investment of Rs 318 crore. TI Clean Mobility Pvt Ltd, a wholly-owned subsidiary of Tube Investments of India Ltd, established new production facilities for electric three-wheelers and electric tractors with a capital outlay of Rs 44 crore.
Additionally, IPLTech Electric, another subsidiary of TI Clean Mobility Pvt Ltd, set up a manufacturing plant for electric heavy commercial vehicles, investing Rs 67 crore in the project. As of March 31, 2024, the market capitalization of the nine listed companies within the Murugappa Group reached Rs 3,44,626 crore, a substantial increase from Rs 2,25,320 crore reported a year earlier. This remarkable growth underscores the Group’s continued expansion and investment in its diverse portfolio.
The Murugappa Group is a diversified conglomerate based in India, renowned for its extensive business portfolio spanning various industries, including manufacturing, financial services, and agribusiness. Established over a century ago, the Group operates through multiple subsidiaries, focusing on innovation, expansion, and sustainability. With a strong market presence, it continues to drive growth and deliver value across its diverse sectors.
