Grindwell Norton reports decent set of numbersGRINDWELL - 2116 Change: 21.65 (1.03 %)
Grindwell Norton (GNL) reported decent Q2FY23 numbers with revenue growth of 23.8% YoY owing to better demand and revival in key sectors. Consolidated revenues came at Rs 634.7 crore, up 23.8% YoY and marginally down 0.5% QoQ, primarily aided by strong performance in Ceramics & plastic. Revenue contribution from Abrasives, Ceramics, IT Services & Others stood at ~50.3%, ~42.9%, ~5.7% & ~2.6% respectively. EBITDA came in at Rs122.5 crore, grew by 21.2% YoY with margins of 19.3% (Vs. 19.7% Q2FY22, while gross margins marginally declined by 20bps to 53.5% YoY. PAT grew by 26.6% YoY to Rs 90.1 crore, and marginally declined by 2.6% QoQ.
Overall GNL reported a decent set of numbers with good revenue growth and sustained margins despite volatile input cost. Going forward, accelerated growth in plastics segment is expected to continue owing to niche value added products in life sciences and focus on export of niche high value products. Also, a revival in industrial/automotive, engineering activities would gradually provide further growth opportunities for abrasive, ceramics segments driving the overall performance in long term