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GRINDWELL NORTON 2018-19 Annual Report Analysis
Sun, 31 Mar

GRINDWELL NORTON has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

GRINDWELL NORTON Income Statement Analysis

  • Operating income during the year rose 13.5% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 10.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 17.0% in FY19 as against 17.5% in FY18.
  • Depreciation charges increased by 0.9% and finance costs decreased by 2.2% YoY, respectively.
  • Other income grew by 31.2% YoY.
  • Net profit for the year grew by 11.8% YoY.
  • Net profit margins during the year declined from 10.7% in FY18 to 10.6% in FY19.

GRINDWELL NORTON Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 14,082 15,981 13.5%
Other income Rs m 269 354 31.2%
Total Revenues Rs m 14,351 16,334 13.8%
Gross profit Rs m 2,469 2,718 10.1%
Depreciation Rs m 448 452 0.9%
Interest Rs m 15 15 -2.2%
Profit before tax Rs m 2,275 2,604 14.5%
Tax Rs m 766 917 19.8%
Profit after tax Rs m 1,509 1,687 11.8%
Gross profit margin % 17.5 17.0
Effective tax rate % 33.7 35.2
Net profit margin % 10.7 10.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

GRINDWELL NORTON Balance Sheet Analysis

  • The company's current liabilities during FY19 down at Rs 3 billion as compared to Rs 3 billion in FY18, thereby witnessing an decrease of -1.5%.
  • Current assets rose 11% and stood at Rs 9 billion, while fixed assets rose 4% and stood at Rs 6 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 14 billion as against Rs 13 billion during FY18, thereby witnessing a growth of 8%.

GRINDWELL NORTON Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 9,867 10,925 10.7
 
Current Liabilities Rs m 2,930 2,887 -1.5
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 13,392 14,453 7.9
 
Current assets Rs m 7,764 8,591 10.7
Fixed Assets Rs m 5,628 5,862 4.2
Total Assets Rs m 13,392 14,453 7.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



GRINDWELL NORTON Cash Flow Statement Analysis

  • GRINDWELL NORTON's cash flow from operating activities (CFO) during FY19 stood at Rs 845 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -538 million, an improvement of 21.2% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -682 million on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs -375 million from the Rs 322 million net cash flows seen during FY18.

GRINDWELL NORTON Cash Flow Statement 2018-19

Particulars No. of months 12 12 % Change
Year Ending Mar-18 Mar-19
Cash Flow from Operating Activities Rs m 1,339 845 -36.9%
Cash Flow from Investing Activities Rs m -444 -538 -
Cash Flow from Financing Activities Rs m -603 -682 -
Net Cash Flow Rs m 322 -375 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for GRINDWELL NORTON

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 15.2, an improvement from the EPS of Rs 13.6 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 593.5, stands at 38.9 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 6.0 times, while the price to sales ratio stands at 4.1 times.
  • The company's price to cash flow (P/CF) ratio stood at 28.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Sales per share (Unadj.) Rs 127.2 144.3
TTM Earnings per share Rs 13.6 15.2
Diluted earnings per share Rs 13.6 15.2
Price to Cash Flow x 28.6 28.1
TTM P/E ratio x 37.1 38.9
Price / Book Value ratio x 5.1 5.5
Market Cap Rs m 50,591 60,104
Dividends per share (Unadj.) Rs 5.0 6.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for GRINDWELL NORTON

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 3.0x during FY19, from 2.6x during FY18. The current ratio measures the company's ability to pay short-term and long-term obligations.

    Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 174.6x during FY19, from 149.4x during FY18. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

  • Profitability Ratios
  • Return on Equity (ROE): The ROE for the company improved and stood at 15.4% during FY19, from 15.3% during FY19. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

    Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 24.0% during FY19, from 23.2% during FY18. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

    Return on Assets (ROA): The ROA of the company improved and stood at 11.8% during FY19, from 11.4% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Current ratio x 2.6 3.0
Debtors’ Days Days 459 470
Interest coverage x 149.4 174.6
Debt to equity ratio x 0.0 0.0
Return on assets % 11.4 11.8
Return on equity % 15.3 15.4
Return on capital employed % 23.2 24.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how GRINDWELL NORTON has performed over the last 5 years, please visit here.

GRINDWELL NORTON Share Price Performance

Over the last one year, GRINDWELL NORTON share price has moved up from Rs 505.1 to Rs 593.5, registering a gain of Rs 88.4 or around 17.5%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 18,472.0 (up 0.5%). Over the last one year it has moved down from 18,476.7 to 18,472.0, a loss of 5 points (down 0.0%).

Overall, the S&P BSE SENSEX is up 16.3% over the year.

(To know more, check out historical annual results for GRINDWELL NORTON and quarterly results for GRINDWELL NORTON)

Annual Report FAQs

What is the current share price of GRINDWELL NORTON?

GRINDWELL NORTON currently trades at Rs 1,899.1 per share. You can check out the latest share price performance of GRINDWELL NORTON here...

What was the revenue of GRINDWELL NORTON in FY19? How does it compare to earlier years?

The revenues of GRINDWELL NORTON stood at Rs 16,334 m in FY19, which was up 13.8% compared to Rs 14,351 m reported in FY18.

GRINDWELL NORTON's revenue has grown from Rs 10,695 m in FY15 to Rs 16,334 m in FY19.

Over the past 5 years, the revenue of GRINDWELL NORTON has grown at a CAGR of 11.2%.

What was the net profit of GRINDWELL NORTON in FY19? How does it compare to earlier years?

The net profit of GRINDWELL NORTON stood at Rs 1,687 m in FY19, which was up 11.8% compared to Rs 1,509 m reported in FY18.

This compares to a net profit of Rs 1,209 m in FY17 and a net profit of Rs 1,064 m in FY16.

Over the past 5 years, GRINDWELL NORTON net profit has grown at a CAGR of 12.8%.

What does the cash flow statement of GRINDWELL NORTON reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of GRINDWELL NORTON reveals:

  • Cash flow from operations decreased in FY19 and stood at Rs 845 m as compared to Rs 1,339 m in FY18.
  • Cash flow from investments decreased in FY19 and stood at Rs -538 m as compared to Rs -444 m in FY18.
  • Cash flow from financial activity decreased in FY19 and stood at Rs -682 m as compared to Rs -603 m in FY18.

Here's the cash flow statement of GRINDWELL NORTON for the past 5 years.

(Rs m)FY15FY16FY17FY18FY19
From Operations1,0551,3921,6981,339845
From Investments-302-376-438-444-538
From Financial Activity-459-99329-603-682
Net Cashflow294221,289322-375

What does the Key Ratio analysis of GRINDWELL NORTON reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of GRINDWELL NORTON reveals:

  • Operating profit margins witnessed a fall and stood at 17.0% in FY19 as against 17.5% in FY18.
  • Net profit margins declined from 10.7% in FY18 to 10.6% in FY19.
  • Debt to Equity ratio for FY19 stood at 0.0 as compared to 0.0 in FY18.

Here's the ratio/financial analysis of GRINDWELL NORTON for the past 5 years.

 FY15FY16FY17FY18FY19
Operating Profit Margin (%)17.117.316.617.517.0
Net Profit Margin (%)9.910.010.410.710.6
Debt to Equity Ratio (x)0.00.00.00.00.0

Read: Latest Annual Report Analysis of GRINDWELL NORTON

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