Grindwell Norton reports reasonable Q2FY22 resultsGRINDWELL - 2081 Change: 12.35 (0.60 %)
News: Grindwell Norton (GNL) reported reasonable Q2FY22 results. Revenues came in at Rs.512.7 crore, strong growth of 16.8% YoY and 16.7% QoQ, crossing pre-pandemic levels. primarily aided by strong performance in abrasives, ceramics & plastic segment. Overall, EBITDA margins came in at 19.7% (vs. 21.3% Q2FY21) whereas it marginally declined by 10bps on QoQ basis. PAT grew 10.6% to Rs.71.1 crore, YoY, partly aided by higher other income which grew by 32.8% to Rs.14.2 crore, on YoY basis.
Views: Overall GNL registered a reasonable set of numbers with strong revenue growth while margin blip owing to time lag between pass-through for higher commodity prices. Going forward, accelerated growth in plastics segment expected to continue owing to niche value added products in life sciences and focus on export of niche high value products. Also, further revival in industrial/automotive, engineering activities would gradually provide further growth opportunities for abrasive, ceramics segments driving the overall performance in long term.