Chennai-based Murugappa group has reported a 16% growth in its net profit for FY17 to Rs 2,186 crore as compared to Rs 1,883 crores in the previous fiscal. The turnover the of the group increased to Rs 30,023 crore in FY17 as against Rs 29,395 crore in FY16. The group reported a 34% growth in its EBITDA to Rs 4,065 crore in FY17, as compared to Rs 3,032 crore in the previous fiscal. The company said that it was its highest ever EBITDA. The EBITDA margin during the year under review grew to 14% as compared to 11% in the previous fiscal. The market capitalisation of the group surged 43% to hit the $8 billion mark as compared to $5.6 billion in the previous fiscal, said A Vellayan, group chairman. Revenue from exports/overseas operations increased to Rs 3,400 crore from Rs 2,700 crore last fiscal.
“The best-ever performance in the group’s history has been primarily driven by the union government’s positive policy initiatives across sectors such as sugar, fertiliser, agro, financial services where the gorup well diversified,” said Vellayan. “We hope with these conducive policy initiatives of the union government, coupled with normal monsson (as predicted) as well healthy foreign investments flow into India, the group expect to post 20% to 22% growth in 2017-18 in revenues with strong EBITDA margin and the market capitalisation will touch $10 billion over next 12 to 18 months,” Vellayan said.
“We will come out with our capital expenditure plan in due course of time,” he said. Last fiscal, the group invested around `400 crore, he added. On the sugar front, excise duty sops on ethanol, market linkage system in UP and Maharashtra (in TN soon), export incentives and reduced import duties are expected to benefit its sugar business. Similarly, supply of fertiliser based on the actual usage with soil and testing activities, incentives on transportation of fertiliser to the concerned and expected DBT introduction are set to help its fertiliser business. On GST, he said there could be some issues initially, however, it expects to benefit the group as a whole.