Grindwell Norton - Q3FY21 First Cut - ICICI Direct

(CMP: Rs. 688; MCap: Rs. 7,618 crore)

Grindwell Norton (GNL) reported strong Q3FY21 numbers across operational parameters owing to better demand and revival in key sectors like automotive/ industrial/ construction/ engineering amid economic recovery.

- Revenues came in at Rs. 457.7 crore, which registered a decent growth of 11.6% YoY primarily aided by strong performance in Ceramics & plastic segment. Revenue contribution from Abrasives, ceramics & 'new initiatives' segment stood at ~58%, ~34% & ~9%, respectively

- Abrasive segment revenue grew by 12.0% to Rs. 265.3 crore, YoY, Ceramics and plastic segment grew by 18.0% to Rs. 155.1 crore, YoY while 'new initiatives' segment de-grew by 9.2% to Rs. 41.2 crore, YoY

- Abrasive segment registered EBIT margin of 13.5% with an improvement of 170bps, YoY. While EBIT margins for Ceramics and plastic segment expanded by to 24.1%, YoY (Vs. 12.7% in Q3FY20) and for 'new initiative' segment EBIT margin stood at 28.5% (Vs. 27.6%, YoY)

- Overall, EBITDA margins came in at 21.4%, which improved by 460bps YoY basis. This was primarily aided by reduction in overall operating expenses and better gross margins which improved by 180bps to 56.9%, on YoY basis

- PAT grew by 40.3% to Rs. 66.0 crore, YoY, despite lower other income which declined by 35% to Rs. 5.0 crore, on YoY basis

Shares of GRINDWELL NORTON LTD. was last trading in BSE at Rs.686.3 as compared to the previous close of Rs. 675.7. The total number of shares traded during the day was 2758 in over 349 trades.

The stock hit an intraday high of Rs. 697.15 and intraday low of 677. The net turnover during the day was Rs. 1889954.

Source : Equity Bulls

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