Grindwell Norton Limited · NSE:GRINDWELL
Grindwell Norton — Investor Presentation (May 2024)
40 slides from Grindwell Norton's investor presentation, Jun 1, 2024
Slide 1: Exchange filing cover letter for analyst meet presentation
June 1, 2024 National Stock Exchange of India Limited BSE Limited “Exchange Plaza” Phiroze Jeejeebhoy Towers Bandra Kurla Complex Dalal Street Bandra (East) Fort Mumbai 400 051 Mumbai 400 001 Symbol: GRINDWELL Scrip Code No. 506076 Dear Sir/Madam, Sub: Analyst/ Institutional Investor Meet Presentati
Slide 2: Grindwell Norton Ltd. Analysts' Meet
Grindwell Norton Ltd. Analysts’ Meet May 31, 2024
Slide 3: Impact: GNO Organisation
/ crows IMPACT GNO ORGANISATION
Slide 4: Functions and Businesses organisation
FUNCTIONS BUSINESSES Finance Zonal Head Singudasu Abrasives Sales-Dom./ Nrth/Est/ Ind. Ret. Amit Koul Exp. Sales Hari Naresh G. Chnl Orient Abhijit Singh Himanshu D. *Finance Abrasives Operations Partner Ac Adh & AutoAfter Thin Wh Neilesh Ved Indirect Ch Abr. Mktg. Bonded Abr Nag/HP, Sealant Paint/C
Slide 5: Saint-Gobain
SAINT-GOBAIN
Slide 6: Impact: Sustainability, EHS
/ crows IMPACT SUSTAINABILITY EHS
Slide 7: Emissions and key initiatives
Year 2019 2023 Key initiatives: Volume 100 134 Purchase of green energy Scope 1 100 131 Bio-fuel Scope 2 100 0 Gasifier to replace NG Total CO2 100 60 Usage of ETP treated water in process. Note - 2019 numbers are indexed to 100 Rainwater Harvesting projects. Waste material conversion to gas Noise r
Slide 8: Sustainability Initiatives
SUSTAINABILITY INITIATIVES Shift from Gas Fired Kilns to Electrical Kilns ~1300 tons of RM recycled – Savings of ~960 tons of CO2 7
Slide 9: 2023 EHS Awards
2023 EHS Awards Diamonds Rubies Emeralds • GNO, Abrasives, Mora (Noise Reduction Projects) • This is the 2nd Ruby for Mora & 3rd Ruby for GNO in last 6 years. H I C E - Health Indicator for oCcupational Exposure 54% 36% 28% 28% 24%
Slide 10: ESG award recognition
We have won this prestigious award in recognition of our exceptional achievements across overall engagement, sustainability initiatives, cost-saving endeavours, and the successful completion of ESG audits.
Slide 11: Economy
ECONOMY
Slide 12: Economic Update
ECONOMIC UPDATE S&P has revised India’s GDP growth forecast for FY 2024-25 to 6.8% vs 6.5% earlier and FY 2023-24 to 7.3% vs 6.9% earlier Average CPI in Apr-Mar’24 at 6.5% vs 5.6% in Apr-Mar’23. Q1-24 Mfg. PMI at 57.5 vs 55.5 in Q4-23, Services PMI at 61.2 vs 58.1. FY 2023-24 marks a milesto
Slide 13: India: GDP & IIP Growth (%)
INDIA: GDP & IIP GROWTH (%) Yearly GDP Growth (%) trend… Yearly IIP(%) growth trend... 9.1 11.4 8.0 8.3 7.4 7.2 6.4 6.8 6.5 5.5 7.3 5.2 5.8 3.9 4.0 4.6 4.4 3.3 3.3 3.3 3.8 12-13 23-24 (F) 13-14 14-15 15-16 16-17 17-18 18-19 19-20 20-21 21-22 22-23 -0.8 14-15 15-16 16-17 17-18 19-20 20-21 21-22 22-23
Slide 14: New Products & Innovation
NEW PRODUCTS & INNOVATION
Slide 15: R&D: Delivered Innovation (2020-2024)
R&D: DELIVERED INNOVATION (2020-2024) NEW PRODUCTS (—C_INDUSTRIAL_) i \_ Sanl-Tech Omnl Connector laa AUTOMOTIVE » Solution (>) Norbond SG Pyrofix EV Battery Pack Seal Fire retardant tapes SAINT-GOBAIN
Slide 16: Key Innovations: Refractories for Iron & Steel
KEY INNOVATIONS / NEW TECHNOLOGIES: REFRACTORIES IRON & STEEL KEY SEGMENTS - Iron Making through Blast Furnace Route - Molten Iron Transportation KEY PRODUCT OFFERINGS Blast Furnace Refractory Lining Components Tap Hole Clay Torpedo Ladle Lining Torpedo Ladles PERFORMANCE CERAMICS & REFRACTORIES
Slide 17: Deliver growth through innovation
New markets for Composites Structural glazing tapes Thermal Runaway AFT for Bonding Battery pack solutions Solar Gard films Protection Leveraging competencies across… Innovative Solutions in Abrasives SGRI scrubbers' pads IIOT platform for Grinding Co-Dev process monitoring at customers’ Sales & Glo
Slide 18: Investment
INVESTMENT
Slide 19: Average Capex & Investments per Annum
AVERAGE CAPEX & INVESTMENTS PER ANNUM (Rs. Crores) 199 52 Avg 2017-18 to 2019-20 Avg 2021-22 to 2023-24 Includes: Acquisition of PRS Permacel Investment in Advanced Synthetic Minerals 18
Slide 20: Impact: Digital & Automation
/ crows IMPACT DIGITAL & AUTOMATION
Slide 21: Digital tools: Customer Portal, CRM, MES
Customer Portal : CRM: Cyber Security : Mobile Applications: MES/ Industry 4.0: 20
Slide 22: Impact: Employee Engagement
/ crows IMPACT EMPLOYEE ENGAGEMENT
Slide 23: ME@Saint-Gobain engagement results
ME@SAINT-GOBAIN (Result for Grindwell Norton Ltd) Participation Engagement 93 94 93 95 D&I Index TEC Index G & I Index 92 % Index The Engagement Index is at 93, surpassing the Industry Average of 86 Our Employee Net Promoter Score (E-NPS) of 66 significantly surpasses the Industry Average of 38
Slide 24: Corporate Social Responsibility (CSR)
CORPORATE SOCIAL RESPONSIBILITY (CSR)
Slide 25: CSR Portfolio Snapshot
Portfolio Snapshot for GNO NGO Partners 7.8Cr FY 23-24 20 Projects 2 SDGs Anchors 15 Partners 4 States & UT • Workplace Learning • Gender Diversity Strategic Flagship 10k • Skills & Vocational • Education • Local Community Local Training • Environment support near plant Beneficiaries • Sustainabilit
Slide 26: Key Indicators and Trends
Key Indicators GNO-Key Financial Indicators andand Trends Trends 25
Slide 27: Revenue, Nominal GDP and PBT indexed
Revenue Nominal GDP PBT 250 210 200 200 170 163 161 150 131 127 146 104 134 100 118 100 99 50 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 26
Slide 28: GNO: Revenue from Operations
GNO: REVENUE FROM OPERATIONS (Rs. Crores) CAGR: 2019-20 to 2023-2024 2687 GDP: 10.0% 2541 GNO Rev. from Op: 14.2% 2013 1580 1638 19/20 20/21 21/22 22/23 23/24 GNO (Total) 2023-24 vs 2022-23: Increase in Revenue from Operations 5.7%, Export sales reduced by 8.4% 27
Slide 29: GNO: Revenue from Operations, Domestic and Export
GNO: REVENUE FROM OPERATIONS CAGR: 2019-20 to 2023-2024 (Rs. Crores) GDP: 10.0% 2687 GNO Rev. from Op: 14.2% 2541 Domestic: 15.7% Export: 7.5% 2013 2271 1638 2088 1580 1675 1269 1284 453 415 311 354 338 19/20 20/21 21/22 22/23 23/24 GNO (Total) Exports Domestic 2023-24 vs 2022-23: Increase in Revenu
Slide 30: Segment – Revenue from Operations
SEGMENT – REVENUE FROM OPERATIONS (Rs. Crores) CAGR 2019-20 to 2023-24 Abrasives: 10.2% Ceramics & Plastics: 21.2% 1358 1275 1136 920 931 1085 1035 701 539 503 19/20 20/21 21/22 22/23 23/24 Abrasives C&P 2023-24 vs 2022-23: Increase in Revenue from Operations: Abrasives (6.5%), C&P (4.9%) 29
Slide 31: Key Financial Indicators – Revenue from Operations
KEY FINANCIAL INDICATORS – REVENUE FROM OPERATIONS (Rs. Crores) Key Financials (As Published) FY 21-22 FY 22-23 FY 23-24 Growth % Revenue from Operations 2013 2541 2687 5.7% Earning Before Interest and Tax (EBIT) 400 494 516 4.5% Profit Before Tax 396 486 508 4.6% Net Profit for the year 295 362 384
Slide 32: Revenue from Operations Bridge
REVENUE FROM OPERATIONS BRIDGE Apr – Mar’23 Apr – Mar’24 Increase Rs.146 crores (5.7%) (Rs. Crores) 3.2% 2.0% 0.5% 31
Slide 33: GNO: Earning Before Interest and Tax (EBIT)
GNO: EARNING BEFORE INTEREST AND TAX (EBIT) (Rs. Crores) CAGR: 2019-20 to 2023-2024 GDP: 10.0% 516 494 GNO EBIT: 20.2% 400 321 247 19/20 20/21 21/22 22/23 23/24 EBIT 2023-24 vs 2022-23: Increase in EBIT 4.5% 32
Slide 34: Segment: Earning Before Interest and Tax (EBIT)
SEGMENT: EARNING BEFORE INTEREST AND TAX (EBIT) (Rs. Crores) CAGR 2019-20 to 2023-24 Abrasives: 15.3% Ceramics & Plastics: 27.2% 228 207 173 180 156 189 130 107 112 79 19/20 20/21 21/22 22/23 23/24 Abrasives C&P 2023-24 vs 2022-23: Abrasives increased by 5.5%, C&P decreased by 9.1% 33
Slide 35: Key Financial Indicators – EBIT
KEY FINANCIAL INDICATORS – EBIT (Rs. Crores) Key Financials (As Published) FY 21-22 FY 22-23 FY 23-24 Growth % Revenue from Operations 2013 2541 2687 5.7% Earning Before Interest and Tax (EBIT) 400 494 516 4.5% Profit Before Tax 396 486 508 4.6% Net Profit for the year 295 362 384 6.2% EBIT Margin (
Slide 36: Earning Before Interest and Tax (EBIT) bridge
EARNING BEFORE INTEREST AND TAX (EBIT) Apr – Mar’23 Apr – Mar’24 Increase Rs.22 crores (4.5%) (Rs. Crores) 35
Slide 37: GNO Profits – PBIT & PAT
GNO PROFITS – PBIT & PAT (Rs. Crores) GNO PBIT CAGR GNO PAT CAGR 2019-20 to 2023-24: 20.2% 2019-20 to 2023-24: 20.2% PBIT 494 516 PAT 400 321 247 362 384 295 238 184 19/20 20/21 21/22 22/23 23/24 2023-24 vs 2022-23 : PBIT increase by : 4.5%; PAT growth: 6.2% 36
Slide 38: GNO – Dividend
GNO – DIVIDEND Dividend Per Share (Rs.) 20.0 17.00 14.50 15.0 12.00 9.50 10.0 7.50 5.0 0.0 19/20 20/21 21/22 22/23 23/24 Note - FY 23-24 dividend is proposed by Board, subject to approval of shareholders 37
Slide 39: Saint-Gobain
SAINT-GOBAIN
Slide 40: Thank You
Thank You 39