GRINDWELL NORTON 2022-23 Annual Report Analysis

Mon, 12 Feb

GRINDWELL NORTON has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

GRINDWELL NORTON Income Statement Analysis

• Operating income during the year rose 26.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 24.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 19.5% in FY23 as against 19.8% in FY22.
• Depreciation charges increased by 12.5% and finance costs increased by 89.3% YoY, respectively.
• Other income grew by 3.9% YoY.
• Net profit for the year grew by 22.5% YoY.
• Net profit margins during the year declined from 14.7% in FY22 to 14.2% in FY23.

GRINDWELL NORTON Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	20,128	25,413	26.3%
Other income	Rs m	556	578	3.9%
Total Revenues	Rs m	20,683	25,991	25.7%
Gross profit	Rs m	3,979	4,961	24.7%
Depreciation	Rs m	535	601	12.5%
Interest	Rs m	41	78	89.3%
Profit before tax	Rs m	3,959	4,859	22.7%
Tax	Rs m	1,008	1,244	23.4%
Profit after tax	Rs m	2,951	3,615	22.5%
Gross profit margin	%	19.8	19.5
Effective tax rate	%	25.5	25.6
Net profit margin	%	14.7	14.2

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GRINDWELL NORTON Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 5 billion as compared to Rs 5 billion in FY22, thereby witnessing an increase of 5.6%.
• Long-term debt stood at Rs 40 million as compared to Rs 0 million during FY22, a fall of 0.0%.
• Current assets rose 0% and stood at Rs 14 billion, while fixed assets rose 39% and stood at Rs 10 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 24 billion as against Rs 21 billion during FY22, thereby witnessing a growth of 14%.

GRINDWELL NORTON Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	15,581	17,940	15.1
Current Liabilities	Rs m	4,885	5,157	5.6
Long-term Debt	Rs m	0	40	0.0
Total Liabilities	Rs m	21,159	24,059	13.7
Current assets	Rs m	13,778	13,785	0.1
Fixed Assets	Rs m	7,381	10,274	39.2
Total Assets	Rs m	21,159	24,059	13.7

GRINDWELL NORTON Cash Flow Statement Analysis

• GRINDWELL NORTON's cash flow from operating activities (CFO) during FY23 stood at Rs 4 billion, an improvement of 90.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -2 billion, an improvement of 315.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 12 million from the Rs 191 million net cash flows seen during FY22.

GRINDWELL NORTON Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	1,866	3,557	90.6%
Cash Flow from Investing Activities	Rs m	-536	-2,229	-
Cash Flow from Financing Activities	Rs m	-1,139	-1,402	-
Net Cash Flow	Rs m	191	12	-93.6%

Current Valuations for GRINDWELL NORTON

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 32.7, an improvement from the EPS of Rs 26.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,874.9, stands at 57.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 11.6 times, while the price to sales ratio stands at 8.2 times.
• The company's price to cash flow (P/CF) ratio stood at 49.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	181.8	229.5
TTM Earnings per share	Rs	26.7	32.7
Diluted earnings per share	Rs	26.7	32.7
Price to Cash Flow	x	57.2	49.6
TTM P/E ratio	x	67.3	57.1
Price / Book Value ratio	x	10.3	11.7
Market Cap	Rs m	159,739	209,139
Dividends per share (Unadj.)	Rs	12.0	14.5

Ratio Analysis for GRINDWELL NORTON

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.7x during FY23, from 2.8x during FY22. 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 deteriorated and stood at 63.3x during FY23, from 97.1x during FY22. 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 20.2% during FY23, from 18.9% during FY23. 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 27.5% during FY23, from 25.7% during FY22. 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 15.4% during FY23, from 14.1% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	2.8	2.7
Debtors’ Days	Days	430	402
Interest coverage	x	97.1	63.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	14.1	15.4
Return on equity	%	18.9	20.2
Return on capital employed	%	25.7	27.5

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 1,799.4 to Rs 1,874.9, registering a gain of Rs 75.5 or around 4.2%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 34,369.7 (up 1.2%). Over the last one year it has moved up from 27,506.0 to 34,369.7, a gain of 6,864 points (up 25.0%).

Overall, the S&P BSE SENSEX is up 1.8% over the year.

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