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Grindwell Norton Ltd's Q3FY19 consolidated net profit rises 3.1% yoy to Rs41.25cr : Misses Estimates
The company’s consolidated revenue stood at Rs394.80cr, up 8.04% yoy but down 5.28% qoq.
Feb 04, 2019 09:02 IST India Infoline Research Team
Grindwell Norton Ltd Q3FY19
Consolidated Results Q3FY19: (Rs. in cr)
| Q3FY19 | YoY (%) | |
|---|---|---|
| Revenue | 394.80 | 8.0 |
| EBITDA | 64.04 | [0.7] |
| EBITDA Margin (%) | 16.2 | [142] |
| Net Profit (adjusted) | 41.25 | 3.1 |
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Grindwell Norton’s Q3FY19 numbers were below consensus estimates. Total revenues from operations increased 8% yoy to Rs394.8cr vs. Rs365.4cr in Q3FY18, missing the estimates by 5.5%. EBITDA for the quarter under consideration was Rs64cr vs. Rs64.5cr in the same quarter last year, missing the consensus estimates by 11.6%. EBITDA margin contracted by 142bps yoy to 16.2% for the quarter under review. Net profit after taxes rose 3.1% yoy to Rs41.3cr as compared to Rs40cr in Q3FY18, falling 6.8% short of the street estimates.
- Key profitability parameters for the current quarter were muted mainly owing to higher operating expenses (up 9.4% yoy to Rs342.7cr).
- Net tax expenses increased 13.9% yoy to Rs21.6cr in Q3FY19 vs. Rs19cr in Q3FY18.
- Abrasives business for the quarter grew 5.1% yoy to Rs234.5cr, while EBIT declined by 6.4% yoy to Rs31.3cr. As a result, EBIT margin declined from 15% in Q3FY18 to 13.3% in Q3FY19.
- Ceramics & Plastics witnessed a strong growth of 24.3% yoy to Rs132.1cr for the current quarter. EBIT increased by 20.1% yoy to Rs19.1cr, while margin softened to 14.5% (15% in Q3FY18).
- Other income jumped 61.4% yoy to Rs11.1cr for the current quarter as compared to Rs6.9cr for the same quarter last year.
Technical View:
Grindwell Norton Ltd is currently trading at Rs. 538, down by 4.05 points or 0.75% from its previous closing of Rs. 542.05 on the BSE.
The scrip opened at Rs. 540 and has touched a high and low of Rs. 544.80 and Rs. 538 respectively. So far 12,479 (NSE+BSE) shares were traded on the counter. The stock is currently trading below its 50 DMA.
