GRINDWELL NORTON Announces Quarterly Results (3QFY20); Net Profit Up 12.8%

Wed, 5 Feb

GRINDWELL NORTON has announced its results for the quarter ended December 2019. Here is a detailed performance review of the same:

GRINDWELL NORTON Quarterly Financials

No. of Mths Qtr. Ending		3 Dec-18*	3 Sep-19*	3 Dec-19*	QoQ Change	YoY Change
Net Sales	Rs m	3,948	3,923	4,100	4.5%	3.9%
Other income	Rs m	111	103	90	-12.7%	-18.7%
Turnover	Rs m	4,059	4,026	4,190	4.1%	3.2%
Expenses	Rs m	3,308	3,272	3,409	4.2%	3.1%
Gross profit	Rs m	640	651	691	6.1%	7.9%
Depreciation	Rs m	115	145	146	0.5%	26.6%
Interest	Rs m	4	10	10	7.4%	191.4%
Profit before tax	Rs m	632	599	625	4.3%	-1.2%
Tax	Rs m	216	77	155	102.5%	-28.2%
Profit after tax	Rs m	416	523	470	-10.1%	12.8%
Gross profit margin	%	16.2	16.6	16.9
Effective tax rate	%	34.2	12.8	24.8
Net profit margin	%	10.3	13.0	11.2

Year-on-Year Performance:

• The company's operating income during the quarter grew 3.9% on a year-on-year (YoY) basis. The expenses were up by 3.1% YoY during the same period.
• The company's operating profit increased by 7.9% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 16.9% in 3QFY20 as against 16.2% in 3QFY19.
• Depreciation charges increased by 26.6% and finance costs increased by 191.4% YoY, respectively.
• Other income declined by 18.7% YoY during the quarter.
• Net profit for the quarter increased by 12.8% YoY. Net profit margins during the quarter increased from 10.3% in 3QFY19 to 11.2% in 3QFY20.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 4.5% on a quarter-on-quarter (QoQ) basis. The expenses were up by 4.2% QoQ during the same period.
• The company's operating profit increased by 6.1% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 16.9% in 3QFY20 as against 16.6% in 2QFY19.
• Net profit for the quarter declined by 10.1% QoQ, while net profit margins declined from 13.0% in 2QFY19 to 11.2% in 3QFY20.

To see how GRINDWELL NORTON has performed over the last eight quarters,please visit here.

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GRINDWELL NORTON Share Price Performance

Over the last one year,GRINDWELL NORTON share price has moved up from Rs 526.5 to Rs 647.6, registering a Gain of Rs 121.2 or around 23.0%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 17,107.4 (up 1.5%). Over the last one year it has moved up from 17,089.3 to 17,107.4, a gain of 18 points (up 0.1%).

Overall, the S&P BSE SENSEX is up 12.1% over the year.

Current Valuations

At the current price of Rs 647.6, the price to earnings (P/E) ratio of GRINDWELL NORTON stands at 38.8 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 6.5 times.