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 03:02 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
***EBITDA margin change is bps
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.

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