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GRINDWELL NORTON 2021-22 Annual Report Analysis
Tue, 12 Jul

GRINDWELL NORTON has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

GRINDWELL NORTON Income Statement Analysis

  • Operating income during the year rose 22.9% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 26.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 19.8% in FY22 as against 19.2% in FY21.
  • Depreciation charges decreased by 1.6% and finance costs increased by 20.5% YoY, respectively.
  • Other income declined by 7.2% YoY.
  • Net profit for the year grew by 24.5% YoY.
  • Net profit margins during the year grew from 14.5% in FY21 to 14.7% in FY22.

GRINDWELL NORTON Income Statement 2021-22

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Net Sales Rs m 16,379 20,128 22.9%
Other income Rs m 598 556 -7.2%
Total Revenues Rs m 16,978 20,683 21.8%
Gross profit Rs m 3,152 3,989 26.6%
Depreciation Rs m 544 535 -1.6%
Interest Rs m 34 41 20.5%
Profit before tax Rs m 3,173 3,969 25.1%
Tax Rs m 795 1,008 26.9%
Profit after tax Rs m 2,378 2,961 24.5%
Gross profit margin % 19.2 19.8
Effective tax rate % 25.0 25.4
Net profit margin % 14.5 14.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Read Now: We're Bullish on 2 Non-Nifty Stocks

GRINDWELL NORTON Balance Sheet Analysis

  • The company's current liabilities during FY22 stood at Rs 5 billion as compared to Rs 4 billion in FY21, thereby witnessing an increase of 10.8%.
  • Current assets rose 11% and stood at Rs 14 billion, while fixed assets rose 19% and stood at Rs 7 billion in FY22.
  • Overall, the total assets and liabilities for FY22 stood at Rs 21 billion as against Rs 19 billion during FY21, thereby witnessing a growth of 13%.

GRINDWELL NORTON Balance Sheet as on March 2022

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Networth Rs m 13,560 15,581 14.9
 
Current Liabilities Rs m 4,355 4,826 10.8
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 18,621 21,101 13.3
 
Current assets Rs m 12,469 13,793 10.6
Fixed Assets Rs m 6,152 7,307 18.8
Total Assets Rs m 18,621 21,101 13.3
* 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 FY22 stood at Rs 2 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY22 stood at Rs -536 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY22 stood at Rs -1 billion on a YoY basis.
  • Overall, net cash flows for the company during FY22 stood at Rs 191 million from the Rs 67 million net cash flows seen during FY21.

GRINDWELL NORTON Cash Flow Statement 2021-22

Particulars No. of months 12 12 % Change
Year Ending Mar-21 Mar-22
Cash Flow from Operating Activities Rs m 3,313 1,866 -43.7%
Cash Flow from Investing Activities Rs m -2,296 -536 -
Cash Flow from Financing Activities Rs m -950 -1,139 -
Net Cash Flow Rs m 67 191 186.5%
* 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 26.7, an improvement from the EPS of Rs 21.5 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 1,690.0, stands at 63.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 12.0 times, while the price to sales ratio stands at 9.3 times.
  • The company's price to cash flow (P/CF) ratio stood at 45.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-21* 12 Mar-22*
Sales per share (Unadj.) Rs 147.9 181.8
TTM Earnings per share Rs 21.5 26.7
Diluted earnings per share Rs 21.5 26.7
Price to Cash Flow x 36.1 45.7
TTM P/E ratio x 44.3 63.2
Price / Book Value ratio x 5.8 10.3
Market Cap Rs m 78,689 159,739
Dividends per share (Unadj.) Rs 9.5 12.0
* 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 deteriorated and stood at 2.9x during FY22, from 2.9x during FY21. 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 97.3x during FY22, from 93.8x during FY21. 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 19.0% during FY22, from 17.5% during FY22. 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 25.7% during FY22, from 23.6% during FY21. 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 14.2% during FY22, from 13.0% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-21* 12 Mar-22*
Current ratio x 2.9 2.9
Debtors’ Days Days 450 430
Interest coverage x 93.8 97.3
Debt to equity ratio x 0.0 0.0
Return on assets % 13.0 14.2
Return on equity % 17.5 19.0
Return on capital employed % 23.6 25.7
* 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 1,308.5 to Rs 1,690.0, registering a gain of Rs 381.5 or around 29.2%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 27,225.4 (down 0.9%). Over the last one year it has moved up from 22,982.4 to 27,225.4, a gain of 4,243 points (up 18.5%).

Overall, the S&P BSE SENSEX is up 2.5% 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 FY22? How does it compare to earlier years?

The revenues of GRINDWELL NORTON stood at Rs 20,683 m in FY22, which was up 21.8% compared to Rs 16,978 m reported in FY21.

GRINDWELL NORTON's revenue has grown from Rs 14,351 m in FY18 to Rs 20,683 m in FY22.

Over the past 5 years, the revenue of GRINDWELL NORTON has grown at a CAGR of 9.6%.

What was the net profit of GRINDWELL NORTON in FY22? How does it compare to earlier years?

The net profit of GRINDWELL NORTON stood at Rs 2,961 m in FY22, which was up 24.5% compared to Rs 2,378 m reported in FY21.

This compares to a net profit of Rs 1,839 m in FY20 and a net profit of Rs 1,687 m in FY19.

Over the past 5 years, GRINDWELL NORTON net profit has grown at a CAGR of 18.4%.

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 FY22 and stood at Rs 1,866 m as compared to Rs 3,313 m in FY21.
  • Cash flow from investments increased in FY22 and stood at Rs -536 m as compared to Rs -2,296 m in FY21.
  • Cash flow from financial activity decreased in FY22 and stood at Rs -1,139 m as compared to Rs -950 m in FY21.

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

(Rs m)FY18FY19FY20FY21FY22
From Operations1,3398453,1763,3131,866
From Investments-444-538-4,421-2,296-536
From Financial Activity-603-682-951-950-1,139
Net Cashflow322-375-2,19567191

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 down at 19.8% in FY22 as against 19.2% in FY21.
  • Net profit margins grew from 14.5% in FY21 to 14.7% in FY22.
  • Debt to Equity ratio for FY22 stood at 0.0 as compared to 0.0 in FY21.

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

 FY18FY19FY20FY21FY22
Operating Profit Margin (%)17.517.016.719.219.8
Net Profit Margin (%)10.710.611.614.514.7
Debt to Equity Ratio (x)0.00.00.00.00.0

Read: Latest Annual Report Analysis of GRINDWELL NORTON

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