Consolidated Results Q3FY18: (Rs. in crore)
|EBITDA Margin (%)||17.6||366|
|Net Profit (adjusted)||40.24||45.2|
Grindwell Norton’s Q3FY18 consolidated sales increased by 16.2% yoy (adjusting for excise duty in Q3FY17) to Rs365.4cr from Rs314.4cr in Q3FY17. If we do not factor in the excise duty impact, sales for Q3FY18 have grown by ~8% yoy. EBITDA has increased by 46.6% yoy to Rs64.5cr from Rs44.0cr in Q3FY17, while EBITDA margin increased from 14% in Q3FY17 to 17.6% in Q3FY18. Increase in EBITDA was a result of decrease in operating expenses in proportion to sales. As a result, net profit during the quarter grew by 45.2% to Rs40.2cr in Q3FY18. vs. Rs27.7cr in Q3FY17.
• Sales in the abrasives segment (60% of FY17 sales) has increased by mere 1.5% yoy to Rs221.6cr. However, EBIT margin has increased from 11.9% in Q3FY17 to 15.1% in Q3FY18.
• Sales in the ceramics and plastics segment (~29% of FY17 sales) increased by 24.3% yoy to Rs105.7cr, while EBIT margin has jumped to 15% vs. 9.5% in Q3FY17.
• Sales in the other segment has increased by 19.3% yoy to Rs40.4cr, while EBIT margin for the segment was 6.7% in the quarter vs. 6.3% in Q3FY17.
Grindwell Norton Ltd is currently trading at Rs. 506.65, down by 0.25 points or 0.05% from its previous closing of Rs. 506.90 on the BSE.
The scrip opened at Rs. 497.30 and has touched a high and low of Rs. 515 and Rs. 485.50 respectively. So far 25,094(NSE+BSE) shares were traded on the counter. The stock is currently trading above its 50 DMA.