• JULY 27, 2000

Grindwell Norton: Other income adds to bottomline in 1Q

Grindwell Norton Ltd., has declared staid results in the first quarter of FY2001. The company has recorded a 27% growth in net profit, but this growth is largely on account of a 37% jump in other income. The company's turnover has increased by a marginal 4% compared to 1QFY2000.

(Rs m) 1QFY00 1QFY01 Change
Sales 501 519 3.6%
Other Income 19 26 36.8%
Expenditure 447 459 2.7%
Operating Profit (EBDIT) 54 60 11.1%
Operating Profit Margin (%) 10.8% 11.6%  
Interest 9 8 -11.1%
Depreciation 14 15 7.1%
Profit before Tax 50 63 26.0%
Tax 16 20 25.0%
Profit after Tax/(Loss) 34 43 26.5%
Net profit margin (%) 6.8% 8.3%  
No. of Shares (eoy) (m) 13.8 13.8  
Earnings per share* 9.9 12.3  

Grindwell is a 51% subsidiary MNC Saint-Gobain. It manufactures bonded abrasives, coated abrasive products, super abrasives, engineered ceramics, and engineered fluids.

However, the company has shown signs of improvement in turnover when these results are compared to its performance in the last quarter of FY2000 (4QFY00). Compared to 4QFY00, its turnover has surged by 9%. But here also its other income has surged by more than 85%. As a result, the company's net profit has surged by 38% in 1QFY2001 when compared to 4QFY00.

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