GRINDWELL NORTON 2018-19 Annual Report Analysis

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GRINDWELL NORTON 2018-19 Annual Report Analysis
Mon, 23 Sep

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 11.7% 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 17.3% in FY18.
  • Depreciation charges increased by 0.9% and finance costs decreased by 2.0% 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 10.3% in FY18 to 10.3% in FY19.

GRINDWELL NORTON Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 14,310 15,981 11.7%
Other income Rs m 270 354 31.2%
Total Revenues Rs m 14,579 16,334 12.0%
Gross profit Rs m 2,469 2,718 10.1%
Depreciation Rs m 448 452 0.9%
Interest Rs m 15 15 -2.0%
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 % 17.3 17.0
Effective tax rate % 33.7 35.2
Net profit margin % 10.3 10.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 6% and stood at Rs 4 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 9,905 10,979 10.8
 
Current Liabilities Rs m 2,930 2,887 -1.5
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 13,438 14,493 7.8
 
Current assets Rs m 7,764 8,591 10.7
Fixed Assets Rs m 3,667 3,880 5.8
Total Assets Rs m 13,438 14,493 7.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 -384 million from the Rs 299 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 299 -384 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 600.0, stands at 39.5 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 5.4 times, while the price to sales ratio stands at 3.7 times.
  • The company's price to cash flow (P/CF) ratio stood at 31.1 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 129.2 144.3
TTM Earnings per share Rs 13.6 15.2
Diluted earnings per share Rs 13.6 15.2
Price to Cash Flow x 33.9 31.1
TTM P/E ratio x 39.5 39.5
Price / Book Value ratio x 5.1 5.4
Market Cap Rs m 66,432 66,432
Dividends per share (Unadj.) Rs 5.0 6.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 149.7x 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 15.2% 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 23.9% during FY19, from 23.1% 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 11.7% during FY19, from 11.3% 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 45 47
Interest coverage x 149.7 174.6
Debt to equity ratio x 0.0 0.0
Return on assets % 11.3 11.7
Return on equity % 15.2 15.4
Return on capital employed % 23.1 23.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 505.6 to Rs 600.0, registering a gain of Rs 94.4 or around 18.7%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 19,060.7 (up 5.5%). Over the last one year it has moved up from 18,058.2 to 19,060.7, a gain of 1,002 points (up 5.6%).

Overall, the S&P BSE SENSEX is up 5.3% over the year.

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

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