MEMBER'S LOGINX
| Login Failure | ||||||||
|
||||||||
| Sign Up | Forgot Password? | ||||||||
- Home
- Outlook Arena
- Mar 7, 2001 - Grindwell: Waiting in the wings
Grindwell: Waiting in the wings
Engineering major Grindwell Norton has declared staid results in its third quarter ended December 2000. Its turnover was up 9.4% YoY, and its bottomline improved by 9% during the period. The improvement was largely contributed by a cut in interest costs.
| (Rs m) | 3QFY00 | 3QFY01 | Change | 9m FY00 | 9m FY01 | Change |
| Net Sales | 489 | 535 | 9.4% | 1,508 | 1,521 | 0.9% |
| Other Income | 16 | 16 | 0.0% | 60 | 61 | 1.7% |
| Total expenditure | 430 | 476 | 10.7% | 1,344 | 1,352 | 0.6% |
| Operating Profit (EBDIT) | 59 | 59 | 0.0% | 164 | 169 | 3.0% |
| Operating Profit Margin (%) | 12.1% | 11.0% | 10.9% | 11.1% | ||
| Interest | 11 | 8 | -27.3% | 29 | 26 | -10.3% |
| Depreciation | 14 | 15 | 7.1% | 42 | 45 | 7.1% |
| Profit before Tax | 50 | 52 | 4.0% | 153 | 159 | 3.9% |
| Tax | 17 | 16 | -5.9% | 50 | 50 | 0.0% |
| Profit after Tax/(Loss) | 33 | 36 | 9.1% | 103 | 109 | 5.8% |
| Net profit margin (%) | 6.7% | 6.7% | 6.8% | 7.2% | ||
| No. of Shares (eoy) (m) | 13.8 | 13.8 | 13.8 | 13.8 | ||
| Earnings per share* | 10.0 | 10.5 | ||||
| *(annualised) | ||||||
| Current P/e ratio | 6.6 |
Grindwell is a 51% subsidiary MNC Saint-Gobain. It manufactures bonded abrasives, coated abrasive products, super abrasives, engineered ceramics, and engineered fluids.
FY01 has been better for Grindwell as compared to FY00. This year the company has focussed on cutting costs (pruning of interest burden and intiating a VRS scheme). Though turnover and net profit on a nine month basis were up marginally, its net margins improved by 40 basis points. The company's continued focus on improving operating efficiencies is likely to show results in the next few years. But concerns remain over slowdown in demand in user industries like automobiles.
If the government's budget initiatives to kick start automobile demand succeed, then Grindwell Norton's fortunes will also see a consequent change. Until then, the focus will remain on tightening the belt. At the current stock price of Rs 70 the stock trades at a P/e mutiple of 6.6 times its nine month FY01 annualised earnings. The company's valuation re-rating is subject to improvement in demand from user indutries.
More Views on News
GRINDWELL NORTON Announces Quarterly Results (1QFY21); Net Profit Down 34.2% (Quarterly Result Update)
Aug 21, 2020 | Updated on Aug 21, 2020For the quarter ended June 2020, GRINDWELL NORTON has posted a net profit of Rs 282 m (down 34.2% YoY). Sales on the other hand came in at Rs 2 bn (down 43.5% YoY). Read on for a complete analysis of GRINDWELL NORTON's quarterly results.
GRINDWELL NORTON Announces Quarterly Results (4QFY20); Net Profit Down 2.5% (Quarterly Result Update)
May 21, 2020 | Updated on May 21, 2020For the quarter ended March 2020, GRINDWELL NORTON has posted a net profit of Rs 418 m (down 2.5% YoY). Sales on the other hand came in at Rs 4 bn (down 9.7% YoY). Read on for a complete analysis of GRINDWELL NORTON's quarterly results.
GRINDWELL NORTON 2018-19 Annual Report Analysis (Annual Result Update)
Sep 23, 2019 | Updated on Sep 23, 2019Here's an analysis of the annual report of GRINDWELL NORTON for 2018-19. It includes a full income statement, balance sheet and cash flow analysis of GRINDWELL NORTON. Also includes updates on the valuation of GRINDWELL NORTON.
Garden Reach Shipbuilders and Engineers Ltd: Is This PSU Shipbuilder Worth Betting On? (IPO)
Sep 24, 2018Should you apply for the IPO of Garden Reach Shipbuilders and Engineers Ltd?
More Views on NewsMost Popular
How the 8-Year Cycle Can Help Identify Multibaggers (Fast Profits Daily)
Sep 11, 2020This is how you can apply the greed and fear cycle in the market to pick stocks.
I Recommended this Stock over Page Industries because it's Relevant to Doubling Your Income (Profit Hunter)
Sep 7, 2020Things are not often what they seem in the market and how you can take advantage of this.
The NASDAQ Whale Could Harm Your Portfolio (Fast Profits Daily)
Sep 7, 2020The discovery of Softbank pushing up prices on the NASDAQ will cause volatility in the market. Stay alert!
This Could Be the Best September for Auto Stocks (Profit Hunter)
Sep 11, 2020Here's why I think this month could be a great for auto stocks.
MoreOUR TOP 5 IDEAS
- REVEALED: 5 Pandemic-Proof Smallcaps You Should Know About...
- Are You Making One of These 15 Costly Mistakes While Investing. Learn more!
- Covid-19 Proof Multibagger Stocks - Download this FREE Report Now
- Free Report: The Secret to Increasing Your Trading Profits Daily!
- No Guessing, No Hunches, and No Missed Trends Ever! Join Us on YouTube Now.
GRINDWELL NORTON SHARE PRICE
Sep 18, 2020 (Close)
TRACK GRINDWELL NORTON
- Track your investment in GRINDWELL NORTON with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
- Add To MyStocks
MORE ON GRINDWELL NORTON
GRINDWELL NORTON 5-YR ANALYSIS
COMPARE GRINDWELL NORTON WITH
MARKET STATS
ABOUT EQUITYMASTER
Since 1996, Equitymaster has been the source for honest and credible opinions on investing in India. With solid research and in-depth analysis Equitymaster is dedicated towards making its readers- smarter, more confident and richer every day. Here's why hundreds of thousands of readers spread across more than 70 countries Trust Equitymaster.
FREE NEWSLETTERS
PREMIUM PRODUCTS
QUICK LINKS
APPS
Copyright © Equitymaster Agora Research Private Limited.
Whitelist | Refer | Terms | Privacy | Contact | About | Sitemap
Equitymaster Agora Research Private Limited (Research Analyst) 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407
All rights reserved. Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.
LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.
Equitymaster requests your view! Post a comment on "Grindwell: Waiting in the wings". Click here!
Comments are moderated by Equitymaster, in accordance with the Terms of Use, and may not appear
on this article until they have been reviewed and deemed appropriate for posting.
In the meantime, you may want to share this article with your friends!