Grindwell Norton Ltd.Investor Meet

31st May 2019

2

Key Indicators

and Trends

GNO-Key Indicators

and Trends

KEY FINANCIAL INDICATORS(Rs. Crores)

Key Financials (as published) FY 18-19 FY 17-18 Growth %

Revenue from Operations 1598 1454 9.9%

Operating Profit (PBIT) 262 229 14.4%

Profit Before Tax 260 228 14.2%

Net Profit for the period 169 151 11.7%

Revenue from Operations (net of Excise Duty) 1598 1431 11.7%

OP margin (on Revenue net of excise) 16.4% 16.0%

Asset Turnover Ratio 1.44 1.43

Return on Capital Employed 23.6% 22.8%

Return on Business Assets 36.6% 37.3%

Net Cash Flow from Operations (CFO) 85 134

Revenue from Operations bridge

5.9% 5.3% 0.6%

(Rs. Crores)

Apr-Mar 18*

Rs. 1431

Apr-Mar 19

Rs. 1598Increase Rs.167 crores (+11.7%)

*FY 2017-18 numbers are net of excise duty

PCR 29.3%

PPL 14.5%

Abrasives 9.2%

5

FY 2017-18*

Rs. 1431

Abrasives ~ 4%

(Rs. Crores)

FY 2018-19

Rs. 1598(+11.7%)

FY 2016-17*

Rs. 1263(+13.3%)

Revenue from Operations bridge

*FY 2016-17 and FY 2017-18 numbers are net of Excise duty

Revenue from Operations bridge

Apr- Mar 18*

Rs. 1431Increase Rs.167 crores (+11.7%)

Apr- Mar 19

Rs. 1598

(Rs. Crores)

1.3% 4.4%4.5% 1.0% 0.5%

*FY 2017-18 numbers are net of Excise duty

7

FY 2017-18*

Rs. 1431

Abrasives ~ 4%

(Rs. Crores)

FY 2018-19

Rs. 1598(+11.7%)

FY 2016-17*

Rs. 1263(+13.3%)

Revenue from Operations bridge

*FY 2016-17 and FY 2017-18 numbers are net of Excise duty

8

FY 2017-18*

Rs. 893

Abrasives ~ 4%

(Rs. Crores)

FY 2018-19

Rs. 975Increase Rs. 82 crores ( +9.2%)

Abrasives - Revenue from Operations bridge

*FY 2017-18 number is net of Excise duty

318 373

441 502

562

781 884

915 923

1084 10881186

1333

1,479

285 333

397 434

500

710

813 790 820

946 957

1,062

1,184

1,300

33 40 44 68 62 71 71 125 103

138 131 124 149 179

10

260

510

760

1,010

1,260

1,510

2005 2006 2007 2008 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19

GNO (Total) Domestic

Exports

GNO: DOMESTIC & EXPORT SALES OF PRODUCTS

(NET OF EXCISE UPTO FY 2017-18)

9

(Rs. Crores)

GNO Total Sales CAGR:2005 to 2018-19 : 12.6%

2018-19: Sales Growth: 10.9%; Domestic growth: 9.8%

Export growth: 20.1%

CAGR (2005 to 2018-19):

- Domestic: 12.4%

- Exports: 13.8%

Source: Annual Reports

Note - From 15-16, sales are as per IND AS. Up to 14-15 sales are as per IGAAP

GNO, ABRASIVES, C&P SALES OF PRODUCTS

(NET OF EXCISE UPTO FY 2017-18)

10

(Rs. Crores)

2018-19: GNO Sales increased by 10.9%; Abrasives by 9.1%; C&P by 17.9%

318373

441502

562

781884

915 923

1084 1088

1186

1333

1479

236 286

330 358 386

545 610 602 633

737 745

827 887

968

65 77 98 126 152 218

252 251 259309 309 316

397 468

-

300

600

900

1,200

1,500

2005 2006 2007 2008 09/10* 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19

GNO (Total)

Abrasives

C & P

CAGR 2005 to 2018-19 :

- Abrasives : 11.5%

- C&P : 16.4%

Source: Annual Report

GNO Total Sales CAGR:2005 to 2018-19 : 12.6%

(Rs. Crores)

KEY FINANCIAL INDICATORS(Rs. Crores)

Key Financials (as published) FY 18-19 FY 17-18 Growth %

Revenue from Operations 1598 1454 9.9%

Operating Profit (PBIT) 262 229 14.4%

Profit Before Tax 260 228 14.2%

Net Profit for the period 169 151 11.7%

Revenue from Operations (net of Excise Duty) 1598 1431 11.7%

OP margin (on Revenue net of excise) 16.4% 16.0%

Asset Turnover Ratio 1.44 1.43

Return on Capital Employed 23.6% 22.8%

Return on Business Assets 36.6% 37.3%

Net Cash Flow from Operations (CFO) 85 134

Operating Profit bridgeApr-Mar 18

Rs. 229Apr-Mar 19

Rs. 262Increase Rs. 33 crores (+14.4%) (Rs. Crores)

13

FY 2017-18

Rs. 229

Abrasives ~ 4%

(Rs. Crores)

FY 2018-19

Rs.262(+14.4%)

FY 2016-17

Rs.182 (+25.8%)

Operating Profit bridge

Operating Profit bridgeApr-Mar 18

Rs. 229Apr-Mar 19

Rs. 262Increase Rs. 33 crores (+14.4%) (Rs. Crores)

RM Rate (24)Exchange impact (24)Energy (10)

15

FY 2017-18

Rs. 229

Abrasives ~ 4%

(Rs. Crores)

FY 2018-19

Rs.262(+14.4%)

FY 2016-17

Rs.182 (+25.8%)

Operating Profit bridge

GNO, ABRASIVES, C&P – OPERATING PROFIT (PBIT)

16

(Rs. Crores)

54

69

83 80

98

126

149

139 126

157

164

182

229

262

34

4959

5261

8897

8878

100 101112

125134

13 14 15 18

34 3447

36 3744 42 37

60

75

-5

45

95

145

195

245

2005 2006 2007 2008 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19

GNO (Total) Abrasives C & P

In FY19, GNO PBIT increased by 14.5%; Abrasives by 7.5%; C&P by 25.0%

GNO Op. Profit CAGR:

2005 to 2018-19 : 13.0%

CAGR 2005 to 2018-19: -

Abr. : 11.1%

C&P : 14.4%

Source: Annual ReportsNote - From 15-16, OP is as per IND AS. Up to 14-15 OP was as per IGAAP

GNO PROFITS – OPERATING PROFIT(PBIT) & PAT

17

(Rs. Crores)

5469

83 8098

126149

139125

157 164182

229

262

3546

57 55 6486

104 9784

103 106121

151169

0

50

100

150

200

250

300

2005

2006

2007

2008

09/1

0

10/1

1

11/1

2

12/1

3

13/1

4

14/1

5

15/1

6*

16/1

7

17/1

8

18/1

9

PBIT PAT

(1) 2018-19 : PBIT growth: 14.5% ; PAT growth: 12%

(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.)

*From 15-16, OP is as per IND AS. Up to 14-15 OP was as per IGAAP

GNO PAT CAGR

2005 to 2018-19: 12.8%

Source: Annual Reports

GNO Op. Profit CAGR:

- 2005 to 2018-19: 13.0%

GNO PROFITABILITY – ROCE & OP MARGIN (%)

18

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

Operating MarginROCE

Source: Annual & Internal Reports

Note - From 15-16, OP & ROCE are as per IND AS. Up to 14-15 OP & ROCE were as per IGAAP

29.2

23.9

26.8

29.2

30.7

24.9

20.9

23.9

20.1 19.5

22.823.6

18.7

15.7

18.7

16.2

17.1

15.113.5

14.5

13.914.4

16.016.4

10

12

14

16

18

20

15

20

25

30

35

40

2007 2008 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19

ROCE%

OP Margin

2007 2008 09-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19

43 37 33 29 107 97 25 36 41 59 47 62

1.60 1.50 1.40 1.80 1.80 1.60 1.50 1.70 1.45 1.40 1.43 1.44

Year

Capex (in crores)

Asset T/O

GNO: CAPEX IN RS. CRORES & AS % SALES

19

Source: Internal Report

9.7

7.3

4.63.7

12.1

10.6

2.73.3 3.5

4.63.8

4.2

4337

3329

10797

25

3641

59

47

62

(10)

10

30

50

70

90

110

130

0

2

4

6

8

10

12

2007 2008 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19

Cap

ex

in

Rs

. C

rore

s

Ca

pe

x%

Capex %

Capex value

GNO – DIVIDEND PER SHARE & DIVIDEND (+ DDT) PAYOUT (%)

20

**Note: Dividend per share adjusted for bonus/splits

In 2007, a special dividend of Rs.2 per share was declared on account of an extraordinary gain; the

dividend payout % is calculated on net profit including the extraordinary gain

From 2016-17 onwards, Dividend Payout % based on consolidated profit after tax less

minority interest

47%43%

42%39% 40%

38%

45%

40%43%

51%

43% 43% 45% 45%48%

1.25 1.401.75

4.00

2.00

3.00 3.003.25 3.25 3.25 3.25 3.25

4.00

5.00

6.00

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

0%

10%

20%

30%

40%

50%

2004 2005 2006 2007 2008 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19

Dividend (+DDT) Payout (%)

Dividend Per Share (Rs.)**

Source: Annual Reports

Thank You