Murugappa Group: Financial Fireworks and Fizzles!!
Murugappa Group Reports Strong Financial Performance for FY 2023-24
In a notable financial update, the Murugappa Group has announced a robust 15% increase in Profit After Tax (PAT), reaching ₹7,885 crore for the fiscal year 2023-24. This impressive growth underscores the Group’s strong operational performance and strategic initiatives over the past year.
The Group’s turnover also saw a positive uptick of 5%, amounting to ₹77,881 crore. This increase in revenue highlights the Group’s continued resilience and expansion across its various business sectors.
Financial Metrics and Performance:
The Group’s manufacturing entities generated a Free Cash Flow of ₹1,229 crore, which constitutes 31% of their PAT. Despite this strong cash flow, the Return on capital Employed (ROCE) for these entities declined to 21.3%, down from 27.9% the previous year. This decrease may reflect increased capital costs or investment challenges.
On a positive note, the Return on Equity (ROE) for the Group’s financial services businesses improved slightly to 19.2%, up from 19% in the previous year, indicating effective capital management and profitability in the sector.
Market Capitalisation:
The market capitalisation of the nine listed companies under the Murugappa Group surged to ₹3,44,626 crore as of march 31, 2024. This represents a significant increase from ₹2,25,320 crore as of march 31, 2023, demonstrating strong investor confidence and overall growth in the Group’s market value.
In summary, the Murugappa Group’s financial results for FY 2023-24 reflect a blend of impressive growth and sector-specific challenges, underscoring its diverse portfolio and resilience in a dynamic market environment.