Abrasives and precision component manufacturer Wendt India has reported a standalone profit for the quarter ending March 31, 2023 of Rs 12.45 crore, the company said on Friday.
Part of the diversified conglomerate Murugappa Group, the company had registered a standalone net profit of Rs 7.97 crore during the corresponding quarter of the previous year.
For the year ending March 31, 2023, the standalone profit surged to Rs 40.12 crore from Rs 27.10 crore recorded in the same period of last year.
In a statement, the company said the increase in profit is mainly on account of higher sales including better product mix, continued focus on operational efficiency measures and cost control.
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The total income on a standalone basis during the quarter under review grew to Rs 57.37 crore from Rs 45.40 crore registered in the corresponding period of last year. For the year ending March 31, 2023, the standalone total income went up to Rs 200.51 crore from Rs 165.56 crore registered in same period of last year.
Wendt India achieved sales of Rs 190.95 crore during the year ended March 31, 2023 which was 21 per cent higher than what was recorded last year.
Domestic sales recorded in the last financial year stood at Rs 137.83 crore, up by 16 per cent compared to the previous year. "This is on account of higher sales to major user industries like auto, auto-ancillaries, steel, bearings, ceramics, cutting tools, engineering", the company said.
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On the exports front, the company said overseas sales grew by 34 per cent during the financial year at Rs 53.12 crore. "The higher exports was due to increase in sales to countries like the United States of America, Russia, United Kingdom, Germany, Italy, Korea," the company said.
Wendt Grinding Technologies Ltd, the company's subsidiary in Thailand, registered sales of Rs 19.74 crore during the year ending March 31, 2023 with a profit after tax of Rs 2.09 crore.
The Board of Directors had approved the proposal for voluntary de-registration of Wendt Middle East, Sharjah, the other wholly owned subsidiary in January 2021. The subsidiary had completed the liquidation procedures and got the clearance from Harriyah Free Zone Authority in May 2022, it said.
The Board of Directors have recommended a final dividend of Rs 50 per share (500 per cent on face value of equity shares of Rs 10 each) out of the current year's profits. The payment of dividend is subject to the approval of shareholders in the ensuing annual general meeting of the company to be held on July 21, the company said.
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