Investor Meet Presentation [Company Update]

Grindwell Norton Ltd. Investor Meet

2nd June 2015

2

Key Indicators

and Trends

Key Financial Indicators

(Rs. Crores)

Key Financials FY 14-15 FY 13-14 Growth %

Net Sales 1084 923 17.4%

Operating Profit 157 125 25.6%

Profit After Tax 103 84 22.6%

OP margin % 14.5% 13.5%

Asset Turnover 1.7 1.5

ROCE % 23.9% 20.9%

Net Cash Flow from Operations (CFO) 105 106

Net Sales Bridge

4

FY 2013-14

Sales = Rs. 923

Abrasives ~ 4%

(Rs. Crores)

FY 2014-15

Sales = Rs.1084

11% 3% 3%

Increase Rs.161 crores (+ 17%)

103

923

27

1084

31

2013-14 Domestic Volume Export Volume Price 2014-15

Net Sales Bridge

5

FY 2013-14

Sales = Rs. 923

Abrasives ~ 4%

(Rs. Crores)

FY 2014-15

Sales = Rs.1084

11% 5% 1%

Increase Rs.161 crores (+ 17%)

103

923

10

1084

48

2013-14 Abrasives Ceramics &

Plastics

Others 2014-15

Net Sales Bridge

6

FY 2013-14

Sales = Rs. 923

Abrasives ~ 4%

(Rs. Crores)

FY 2014-15

Sales = Rs.1084 (+ 17%)

103

48

1084

10

923

152

31

915

-40

2012-13 Abrasives Ceramics

& Plastics

Others Michelin

Exports

2013-14 Abrasives Ceramics

& Plastics

Others 2014-15

FY 2012-13

Sales = Rs. 915 (+ 0.9%)

GNO, Abrasives, C&P, Others Qtrly Sales

7

(Rs. Crores)

127137

152

172179 184

192

226

201

227 222234

224 230 234227

220230 228

245255

278266

285

87 97

103 116 122

128 132

162

144156

149162

145152 153 152 148

165152

168 171183 180

203

32 37

43 49 52 52 54 59 54

66 63 68 63 6070

57 61 59 64 69 7487

74 74

8 3

6 6 5 3 5 5 3 5 10 415 18

12 1710 6 12 9 11 7 13 7

-

50

100

150

200

250

300

Q1

09/1

0

Q2

09/1

0

Q3

09/1

0

Q4

09/1

0

Q1

10/1

1

Q2

10/1

1

Q3

10/1

1

Q4

10/1

1

Q1

11/1

2

Q2

11/1

2

Q3

11/1

2

Q4

11/1

2

Q1

12/1

3

Q2

12/1

3

Q3

12/1

3

Q4

12/1

3

Q1

13/1

4

Q2

13/1

4

Q3

13/1

4

Q4

13/1

4

Q1

14/1

5

Q2

14/1

5

Q3

14/1

5

Q4

14/1

5

GNO (Total)

Abrasives

C & P

Others

Source: Quarterly results

225 266

318 373

441

502 562

781

884 915 923

1084

203 238

285 333

397 434

500

710

813 790 820

946

21 27 33 40 44 68 62 71 71

125 103138

-

200

400

600

800

1,000

2003 2004 2005 2006 2007 2008 09/10* 10/11 11/12 12/13 13/14 14/15

GNO (Total)

Domestic

Exports

GNO: Domestic & Export Sales (Net)

8

(Rs. Crores) GNO Total Sales CAGR: - 2003 to 2014-15 : 15.4% - 2003 to 2011-12 : 18.7% - 2012 to 2014-15 : 7.0%

2014-15: Sales Growth: 17% ; Domestic growth: 15% Export growth: 34%

CAGR (2003 to 2014-15): - Domestic: 14.0% - Exports: 18.5%

Source: Annual Report

GNO, Abrasives, C&P, Others - Net Sales

9

(Rs. Crores)

In FY15, GNO Sales increased by 17%; Abrasives by 16%; C&P by 19%; Others by 24%

225266

318373

441

502562

781

884915

923

1084

174 207

236 286

330 358

386

545

610 602633

737

46 53 65 77 98

126 152

218 252 251 259

309

5 6 17 11 12 18 24 19 22

6231 38

-

200

400

600

800

1,000

2003 2004 2005 2006 2007 2008 09/10* 10/11 11/12 12/13 13/14 14/15

GNO (Total)

Abrasives

C & P

Others CAGR 2003 to 2014-15: - Abrasives : 14.0% - C&P : 18.9%

GNO Total Sales CAGR: - 2003 to 2014-15 : 15.4% - 2003 to 2011-12 : 18.7% - 2012 to 2014-15 : 7.0%


Key Financial Indicators

(Rs. Crores)

Key Financials FY 14-15 FY 13-14 Growth %

Net Sales 1084 923 17.4%

Operating Profit 157 125 25.6%

Profit After Tax 103 84 22.6%

OP margin % 14.5% 13.5%

Asset Turnover 1.7 1.5

ROCE % 23.9% 20.9%

Net Cash Flow from Operations (CFO) 105 106

Operating Profit Bridge

11

FY 2013-14

OP = Rs. 125

Abrasives ~ 4%

(Rs. Crores)

FY 2014-15

OP = Rs.157 Increase Rs.32 crores (+ 26%)

157

-1213-19

-10-7

40

27

125

2013-1

4Pric

e

Volum

e & M

ix

Input C

ost

Depreciatio

n

Staff

cost

Other I

ncome

Other E

xpenses

2014-1

5


12

FY 2013-14

OP = Rs. 125

Abrasives ~ 4%

(Rs. Crores)

FY 2014-15

OP = Rs.157 Increase Rs.32 crores (+ 26%)

157

7 2 22

125

1


Plastics

Others Unallocable 2014-15


13

FY 2013-14

Sales = Rs. 125

Abrasives ~ 4%

(Rs. Crores)

FY 2014-15

Sales = Rs.157 (+ 26%)

157

1722

125139

1 32-11

-7


Plastics

Others Unallocable 2013-14 Abrasives Ceramics &

Plastics

Others Unallocable 2014-15

FY 2012-13

Op = Rs. 139 (- 11%)

GNO, Abrasives, C&P, Others - Qtrly Op. Profit

14

(Rs. Crores)

2225

27

31 30

27

30

39

3435

37

43

3634 35

3432

3028

34

3739

38

43

1416 17

20 21 2120

26

24 2423

27

22 22 22 2220

21

16

2022

25 25

29

8 89

1110

7 810 10

12 11

14

108

9 8 97

911 12 12

1011

20

2 1 1 0 1 1 1 0

3

12 3 3 3 2

1 0 0

42

4 4

-10

0

10

20

30

40

50Q

1 0

9/10

Q2

09/

10

Q3

09/

10

Q4

09/

10

Q1

10/

11

Q2

10/

11

Q3

10/

11

Q4

10/

11

Q1

11/

12

Q2

11/

12

Q3

11/

12

Q4

11/

12

Q1

12/

13

Q2

12/

13

Q3

12/

13

Q4

12/

13

Q1

13/

14

Q2

13/

14

Q3

13/

14

Q4

13/

14

Q1

14/

15

Q1

14/

15

Q1

14/

15

Q1

14/

15

GNO (Total)**

Abrasives

C & P

Others

(1) Q4 09/10 PBIT for GNO Total and C&P excludes a one time reversal of provision made towards “wheeling

charges” of Rs 7.7 crores. (2) **GNO Total includes unallocated income / expenses.

Source: Quarterly results

GNO, Abrasives, C&P, Others – Op. Profit

15

(Rs. Crores)

32

44

54

69

83 8098

126

149125

126

157

21

32 34

49

5952

61

88

97

88

78

100

8 913 14 15

18

34 34

47

36 3744

0 1 2 3 35 4 4 5

14 11 13

-10

10

30

50

70

90

110

130

150

2003 2004 2005 2006 2007 2008 09/10* 10/11 11/12 12/13 13/14 14/15

GNO (Total)

Abrasives

C & P

Others

In FY15, GNO PBIT increased by 26%; Abrasives by 28%; C&P by 19%; Others by 18%

GNO Op. Profit CAGR: - 2003 to 2014-15 : 15.5% - 2003 to 2011-12 : 21.2% - 2012 to 2014-15 : 1.6%

CAGR 2003 to 2014-15: - Abrasives : 15.5% - C&P : 16.6%


GNO Profits – Op. Profit & PAT

16

(Rs. Crores)

32

4454

69

83 80

98

126

149139

125

157

2029

3546

57 5564

86

10497

84

103

0

20

40

60

80

100

120

140

160

20

03

20

04

20

05

20

06

20

07

20

08

09

/10

*

10

/11

11

/12

12

/13

13

/14

14

/15

PBIT PAT

(1) 2014-15: PBIT growth: 26% ; PAT growth: 23%

(2) 2007 PBIT & PAT are excluding a one time extra-ordinary gain of Rs 77 crores arising out of sale of

shareholding in Lincoln Helios (India) Ltd.

(3) 2009/10 PBIT and PAT excludes a one time reversal of provision made towards “wheeling charges” of Rs

7.7 crores (pro-rata for 12 months is Rs 6 crores.)

GNO PAT CAGR

2003-2015 : 15.9%

GNO Op. Profit CAGR: - 2003 to 2014-15 : 15.5% - 2003 to 2011-12 : 21.2% - 2012 to 2014-15 : 1.6%


GNO Profitability – ROCE & Op Margin (%)

17

21.9

27.9

30.8

34.5

29.2

23.9

26.8

29.2

30.7

24.9

20.9

23.912.6

16.516.9

18.418.7

15.7

18.7

16.2

17.1

15.1

13.5

14.5

10

12

14

16

18

20

15

20

25

30

35

40

2003 2004 2005 2006 2007 2008 09/10 10/11 11/12 12/13 13/14 14/15

ROCE%

OP Margin

Note: Op. Profit is before considering extra-ordinary items.

Operating Margin ROCE

Year 2003 2004 2005 2006 2007 2008 09-10 10-11 11-12 12-13 13-14 14-15

Capex (in crores) 7 13 14 42 43 37 33 29 107 97 25 36

Asset T/o 1.7 1.7 1.8 1.9 1.6 1.5 1.4 1.8 1.8 1.6 1.5 1.7

Source: Internal Report

GNO: Capex in Rs. Crores & as % of Net Sales

18

3.2

4.8 4.3

11.2

9.7

7.3

4.6

3.7

12.1

10.6

2.7 3.3

7 13 14

42 43 37

33 29

107

97

25 36

(10)

10

30

50

70

90

110

130

0

2

4

6

8

10

12

2003 2004 2005 2006 2007 2008 09/10 10/11 11/12 12/13 13/14 14/15

Cap

ex

in

R

s. C

rore

s

Cap

ex

%

Capex %

Capex value

Source: Internal Report

GNO (Standalone) – Dividend per share (Rs.) &

Dividend (+ DDT) payout (%)

19

In 2007, a special interim dividend of Rs 4 per share was declared

47% 43% 42%

78%

40%

38%

45% 40% 43%

51%

43%

2.5 2.8

3.5

8.0

4.0

6.0 6.0 6.5 6.5 6.5 6.5

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

2004 2005 2006 2007 2008 09/10 10/11 11/12 12/13 13/14 14/15

Divided (+ DDT) Payout (%)

Dividend Per Share (Rs.)


Thank You

Documents

Investor Meet Presentation [Company Update]