Murugappa Group sees good times ahead after recording highest turnover
By Express News Service | Published: 20th May 2017 12:59 AM |
CHENNAI: Chennai-based diversified conglomerate Murugappa Group recorded the highest turnover in its history, while also breaking the $8 billion in market capitalisation milestone, during the last financial year (2016-17).
According to the numbers released by the company on Friday, it clocked Rs 30,023 crore in 2016-17. Its market capitalisation also made a big jump — from $5.6 billion in 2015-16 to $8 billion currently.
“2016-17 has been best year for Murugappa Group with increase in turnover..., EBITDA registering 34 per cent growth and profit before tax going up by 59 per cent,” A Vellayan, executive chairman, Murugappa Group said. It had recorded a turnover of Rs 29,395 crore the previous financial year.
The consolidated earnings before interest, taxes, depreciation and amortisation (EBITDA) jumped to Rs 4,065 crore compared to Rs 3,032 crore in 2015-16.
According to Vellayan, the group’s success has been due to the positive policy environment fostered by the government. “We congratulate the government… As a group we have clearly advocated policy changes in the last two-three years. We are pleased that large number of initiatives have been taken (by the government).” He added that the Union government’s policies have started benefiting sectors like steel and fertiliser.
He also touched upon the effect of the GST on the economy, stating that there might be some disruption in the near term because there was some mismatch in the released tax rates.
On the Group’s prospects as a whole for the current financial year, Vellayan said that the company is likely to decide on its next phase of investment by November, when it is expected that its plants will reach 80 per cent utilisation from the current 75 per cent. The Group expects to hit 90 per cent plant utilisation by the year-end.