The Russian subsidiary of Carborundum Universal Ltd. (CUMI), Volzhsky Abrasive Works (VAW), nor its directors or employees are under any sanctions, CUMI’s director finance and strategy Sridharan Rangarajan has said.
“We started the year in February 2022 with a conflict between Russia and Ukraine and economic sanctions were imposed on large parts of Russian economy, businesses, banks, and individuals,” he noted during a recent earnings call. “This disturbed the entire world in terms of increasing inflation, higher energy and food prices… supply shocks and many more.”
Asserting that the war had not impacted VAW much, he said the team had managed risk well and taken suitable actions to mitigate them. VAW was ensuring timely collection from its customers with no challenge, he added.
Suitable logistics arrangements to Europe, India, and other geographies, complying with all regulations had been made and there had been no impact on operations, with installed capacities being utilised at the same level as before the war, Mr. Rangarajan said.
The unit’s top line and net profit had grown in double digits and VAW continued to be debt free and having enough liquidity to manage the business as well. The volume of share, which was normally about 45%, moved up to 58%.
The outlook for the current fiscal remains positive as demand was on an increasing trend, but there would be pressure on maintaining realisation at current levels, considering softening of the commodity price globally, he added.
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