Grindwell Norton Q4 Results Review — Ceramics, Plastics To Drive Growth: ICICI Direct

ICICI Direct Report

Grindwell Norton Ltd. reported a decent set of Q4 FY23 numbers.

Revenues came in at Rs 664,8 crore, 19% YoY, primarily aided by a strong performance in the ceramics and plastic segment.

Grindwell Norton's Ebitda came in at Rs 129.3 crore, up 4.6% YoY with margins at 19.4% while gross margins contracted 300 basis points to 55% YoY. Consequently, profit after tax grew 9.8% YoY to Rs 98.5 crore.

Key triggers for future price performance:

• Ambition to maintain market share in abrasives and increase market share in ceramic and plastics with gradual penetration of new added products.

• High margin added products and solutions oriented approach to drive margin expansion (from ~16.7% in FY20 to 20.4% in FY25E).

• We expect revenue, Ebitda to grow at a compound annual growth rate of 21.4%, 22.3%, respectively, over FY22-25E.

• Net debt free balance sheet, double-digit return ratios and strong cash generation.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.