Carborundum Universal (CUMI) earnings came in below our estimates. Revenuegrew by 4 percent yet EBITDA was down by 4 percent in Q2FY19.

Carborundum Universal (CUMI) earnings came in line with our estimates. Revenue grew by 5.8% YoY to Rs. 6.7 Bn driven by growth in Ceramics (13.9% YoY) and Electrominerals (10.6% YoY) while abrasives dropped marginally continuing Q4FY19 trend.

Carborundum Universal (CUMI) Q4 and FY19 earnings were in-line with our estimates.

Volume Led Growth Across Segments: Revenue grew by ~ 12% to Rs. 6.6 bn and EPS grew by ~ 17% on YoY basis during Q2FY19 which is lower than consensus estimate by ~ 5% for the quarter. Last year H1 business witnessed a significant disruption, Q1 had GST impact and growth started to pickup in Q2, revenue for H1FY19 grew by 17% and EPS grew by 34% on YoY basis.

Volume Led Growth for CUMI in Q1: Carborundum Universal (CUMI) Q1 revenue grew by 22% to Rs. 6.3 bn on account of growth in volumes across segments and net income grew by 56% to Rs. 0.65 bn on relatively better material margins.

Carborundum Universal (CUMI) posted double digit revenue growth (16%) inQ4FY18. Ceramics segment (12.7%) growth was led by industrial ceramics and Electrominerals segment growth (18.7%) led by volumes from India and Russian operations.

Carborundum's (CUMI) operational performance in Q3FY18 was broad-based. In an inflationary situation, CUMI did well to improve margin (up 120 bps at ~17%) as it was able to get price hikes. Management expects the trend to continue over the next few quarters.

The Abrasives segment consists of bonded, coated, processed cloth, polymers, power tools and coolants. The operations are carried out through over 10 manufacturing facilities located pan India, Russia and other countries. The Ceramics segment consists of super refractories, industrial ceramics, anticorrosives and bio ceramics. Its user industries include power generation and transmission, coal washers, grain handling, ballistic protection and construction. The Electro minerals segment includes abrasive/refractory grains, micro grits for the photovoltaic industry and captive power generation from hydel power plant. Its product range includes white and brown fused alumina, silicon carbide, fused...

CUMI Q3FY18 result was in line with our estimate. Volumes across divisions have started to pick up with exception to channel abrasives, severed by GST rollout. Industrial ceramics and EMD division have been witnessing rising demand across...

Carborundum's (CUMI) strong operational performance in Q2FY18 was driven by (1) bounce-back in domestic abrasive business on partial channel restocking after GST implementation; (2) higher volume at VAW (Russian subsidiary)

Higher Volumes Drive Revenue Growth During H1FY18: Higher volumes from across geographies paved for consolidated revenue (net) growth of 7.9% on YoY basis to Rs.10,917mn and the growth at standalone levelreached 3.5% to Rs.7,067mn during H1FY18.

CUMI Q2FY18 PAT outperformed our estimate on back of higher margin in the Electrominerals division (EMD). Revenues at Rs 5.8 Bn came in line with our estimate. Management highlighted that the abrasives business has started to make up for the lost volumes in the previous quarter due to GST transition and would further report traction in 2HFY18. Industrial ceramics and EMD division have been witnessing rising demand across geographies. Company's Russian subsidiaries VAW reported significant volume led growth in the quarter. We however believe that the company would take slightly longer to recover from...

Despite near-term disruption in business on GST implementation, Carborundum's (CUMI) consolidated Q1FY18 PAT was flat YoY at Rs 418 mn. Transitioning to GST impacted the domestic revenue, as the company refrained from extending discount to distributors.

Carborundum's FY17 performance was in line Revenue grew 9%, PAT 21% (higher operating leverage). Adjusted for forex loss, PAT growth would have been 30%. EBIDTA margin expanded 130 bps, led by better margin across Abrasives (45% of rev, margin up 200 bps), and Ceramics (21% of rev; margin up 2..

Carborundum Universals (CUMIs) 4QFY17 revenues ( 11% YoY) were below our estimates led by the Electro minerals (EM) segment ( 7% YoY rev growth and -406bps YoY EBIT margins). The EM segment was impacted by (1) Increase in alumina and pet coke prices (2) High power costs and (3) RUB appreciation. Abrasive/Ceramic segments stood strong, with 11/19% YoY revenue growth and 56/122bps margin expansion to 10.6/15.8%.

CUMI Delivers on FY17 Guidance; Overall Outlook Positive: Carborundum Universals (CUMI) revenue (net) and PAT reached to Rs.20,800mn and Rs.1,749mn which are in-line with FY17 guidance. However, the same were higher than our estimates by 2.4% on revenue side and actual EBITDA and PATmargins were higher by 30bps and 50bps. In terms of segments, Abrasives sales were lower than expected; nevertheless Ceramics and Electro-minerals revenues were in-line.

Carborundum Universal's (CUMI) Q3FY17 PAT grew 44% YoY, in line with our expectation. Management reiterated its guidance for FY17 revenue/ PAT of ~Rs 22 bn/ ~Rs 1.8 bn (up 10%/ 30% YoY).

Carborundum Universals (CUMI?s) 3QFY17 revenues ( 6% YoY) were largely in line with our estimates, barring the Electro minerals (EM) segment (-390bps YoY EBIT margins), whose subdued performance impacted overall margins. The EM segment was impacted by (1) an increase in pet coke prices (2) high power costs due to lower captive power generation and (3) RUB appreciation.

Capacities Coming On-Stream to Aid Growth; Maintain BUY Guidance revised downward for FY17E: CUMI management has revised down the FY17E Revenue and PAT guidance to Rs.22,000mn and PAT in the range ofRs.1750mn Rs.1850mn which are lower by 2.2% and 5.4% respectively from the lower range of earlier guided full year numbers. Sement-wise break-up for FY17Efor Abrasives, Ceramics and Electrominerlas sales could come in the range of Rs.11,000mn, Rs.4,700mn-Rs.4,750mn and Rs.7,500mn-8,000mn respectively.

Management expects to achieve peak revenue potential of Rs 35 bn (Rs 20 bn in FY16) from existing capacities without significant capex. As macro improves, we expect CUMI to post revenue/PAT CAGR of 12%/ 35% over FY16-18E. At CMP, the stock trades at 26x FY17E EPS of Rs 10 and 19x FY18E EPS of Rs 14..