Grindwell Norton Limited · NSE:GRINDWELL
Grindwell Norton — Investor Presentation (May 2022)
30 slides from Grindwell Norton's investor presentation, May 13, 2022
Slide 1: Exchange cover letter: Analyst Meet presentation and video recording
May 13, 2022 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 Presentat
Slide 2: Grindwell Norton Ltd. Investor Meet
Grindwell Norton Ltd. Investor Meet May 13, 2022
Slide 3: GNO Organisation
GNO Organisation
Slide 4: Organisation structure by function and business
> 30 Years > 15 years > 25 Years > 10 years FUNCTION ABRASIVES >20 Years S BND, TW,CP, S&M EXP PM RM BM PM ADH & S&M HR Ops BM OPS OPS OPS CS Finance Abrasives Coated NWN Auto SA OPS PM TECH EHS PROJ ENGG Fin IT PUR SCM CEO – APAC & INDIA MD - GNO CERAMICS & PLASTICS Finance sh Services PPL S&M OPS
Slide 5: Macro outlook
MACRO OUTLOOK Near term outlook is volatile • RBI issued revised projections of real GDP growth for 2022-23 at 7.2%, owing to anticipated impact of escalating geopolitical tensions • Headwinds from higher fuel and commodity prices brought about a broad-based rise in inflationary pressures weighing o
Slide 6: Economic update
ECONOMIC UPDATE ➢ IMF revised India real GDP growth projections for FY 22-23 to 8.2% from 9% citing adverse impact of Russia- Ukraine war; Global growth outlook for 2022 cut to 3.6% from 4.4%. ➢ Nomura India BRI at 125.4 in Apr’22; slightly lower than March ➢ Manufacturing PMI rose to 54.7 in Apr 20
Slide 7: India: GDP & IIP growth (%)
INDIA: GDP & IIP GROWTH (%) Yearly GDP Growth (%) trend… Yearly IIP(%) growth trend... 9.0 11.2 8.0 8.3 7.4 7.2 6.4 6.8 6.5 5.5 3.7 4.6 4.4 4.8 4.0 3.8 3.3 3.3 3.3 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20 20-21 21-22 (F) 22-23 (F) -0.8 21-22 (F) 22-23 (F) 14-15 15-16 16-17 17-18 19-20 20-21 1
Slide 8: Macro economic environment
MACRO ECONOMIC ENVIRONMENT Weekly Narrow Recovery Index continued to improve with ~3.1%MoM jump in April MTD. The economic activity is now ~10- 12% above pre-covid levels Broad Recovery Index rose by 2.6% MoM in Mar’22 & ~5% above pre-covid levels. Overall it is was flat QoQ in Q1 2022 as Omicron wa
Slide 9: Broad Recovery Index vs GNO quarterly sales
BROAD RECOVERY INDEX VS GNO QUARTERLY SALES Index: Broad Recovery : Feb 2020 = 100 GNO Sales : Avg. 2019 = 100 138 127 127 124 112 110 109 108 99 102 99 101 93 91 90 85 61 57 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 8
Slide 10: GNO Key Indicators and Trends
GNO-Key Indicators Key Indicators and Trends and Trends 9
Slide 11: Key financial indicators – revenue from operation
KEY FINANCIAL INDICATORS – REVENUE FROM OPERATION (Rs. Crores) Growth Key Financials(As Published) FY 19-20 FY 20-21 FY 21-22 21-22 vs 20-21 Revenue from Operations 1580 1638 2013 22.9% Operating Profit (PBIT) 247 321 400 24.7% Profit Before Tax 243 317 396 24.8% Net Profit for the period 184 238 29
Slide 12: Revenue from operations bridge
REVENUE FROM OPERATIONS BRIDGE Apr 20 - Mar 21 Apr 21 – Mar 22 Rs.1638 Rs.2013 Increase Rs.375 crores (22.9%) (Rs. Crores) 11
Slide 13: Revenue from operation - bridge
REVENUE FROM OPERATION - BRIDGE Apr 20 - Mar 21 Apr 21 – Mar 22 Rs.1638 Rs.2013 Increase Rs.375 crores (22.9%) (Rs. Crores) 12
Slide 14: GNO: Revenue from operations & exports
GNO: REVENUE FROM OPERATIONS & EXPORTS (NET OF EXCISE UP TO FY 2017-18) (Rs. Crores) 2013 CAGR: 2009-10 to 2021-22 GNO Rev. from Op :10.8% Exports :16.7% 1580 1454 1183 966 906 588 09/10 11/12 13/14 15/16 17/18 19/20 21/22 GNO (Total) 2021-22: Increase in Revenue from Operations 22.9% Export growth:
Slide 15: GDP vs Abrasives and C&P, Tech & Digital Services sale of products
GDP VS ABRASIVES AND C&P, TECH & DIGITAL SERVICES SALE OF PRODUCTS (NET OF EXCISE UP TO FY. 2017-18) (Rs. Crores) 1,500 C&P, T ech & D igital Serv ices CAGR 2009-10 to 2021-22: Abras ive s GDP : 5.6% Abrasives : 9.4% 1,136 C&P, Tech & Digital Services : 13.0% 1,000 920 887 877 745 633 659 610 567 50
Slide 16: Key financial indicators – operating margin
KEY FINANCIAL INDICATORS – OPERATING MARGIN (Rs. Crores) Growth Key Financials(As Published) FY 19-20 FY 20-21 FY 21-22 21-22 vs 20-21 Revenue from Operations 1580 1638 2013 22.9% Operating Profit (PBIT) 247 321 400 24.7% Profit Before Tax 243 317 396 24.8% Net Profit for the period 184 238 295 24.1
Slide 17: Operating profit bridge
OPERATING PROFIT BRIDGE Apr 20 - Mar 21 Apr 21 – Mar 22 Rs.321 Rs.400 Increase Rs.79 crores (24.7%) (Rs. Crores) 16
Slide 18: Operating profit bridge
OPERRATING PROFIT BRIDGE (Rs. Crores) FY 2019-20 (29.9%) FY 2020-21 (24.7%) FY 2021-22 Rs.247 Rs.321 Rs.400 Abrasives ~ 4% 17
Slide 19: GNO, Abrasives, C&P – operating profit (PBIT)
GNO, ABRASIVES, C&P – OPERATING PROFIT (PBIT) (Rs. Crores) GNO Op. Profit CAGR: CAGR 2009-10 to 2021-22: - Abr. : 8.2% 2009-10 to 2020-21 : 12.4% C&P, Tech & Digital Services : 16.9% 450 400 400 Abrasives 350 C&P, Tech and Digital Services 300 247 229 244 250 182 200 149 140 156 126 125 150 112 104
Slide 20: GNO profitability – ROI & OP margin (%)
GNO PROFITABILITY – ROI & OP MARGIN (%) ROI OP Margin 50 48.6 22 ROI% OP Margin% 45 20 40 37.7 37.3 35.9 18.6 18 18.1 34.2 35 16.7 28.2 16 30 14.5 14 25 23.5 14.1 13.1 13.1 20 12 15 10 09/10 11/12 13/14 15/16 17/18 19/20 21/22 Source: 19 Annual Report
Slide 21: GNO profits – operating profit (PBIT) & PAT
GNO PROFITS – OPERATING PROFIT(PBIT) & PAT (Rs. Crores) GNO Op. Profit CAGR: GNO PAT CAGR: 2009-10 to 2021-22: 12.4% 2009-10 to 2021-22: 13.6% PBIT 400 PAT 247 229 295 149 164 125 98 184 151 104 106 84 64 09/10 11/12 13/14 15/16* 17/18 19/20 21/22 2021-22 : PBIT increase by : 24.7%; PAT growth: 24.1
Slide 22: GNO capital expenditure trend - Capex
GNO CAPITAL EXPENDITURE TREND - CAPEX (Rs. Crores) Capex 126 67 50 48 39 2017-18 2018-19 2019-20 2020-21 2021-22 Capex = Purchased of property, plant & equipment and intangible assets Source: 21 Annual Report
Slide 23: GNO – Dividend per share
GNO – DIVIDEND PER SHARE 60% 12.00 12.0 11.0 50% 9.50 10.0 9.0 40% 7.50 8.0 30% 7.0 6.00 6.0 5.00 20% 5.0 4.00 3.25 3.25 3.25 3.25 3.25 4.0 10% 3.00 3.00 Dividend Per Share (Rs.)** 3.0 0% 2.0 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20* 20/21 21/22 **Note: Dividend per share ad
Slide 24: Saint-Gobain
SAINT-GOBAIN
Slide 25: Digital: customer connect, analytics, operational excellence
Customer connect Digital Operational excellence n Analytics • Digital Lead Generation • SCM - Autonomous • Pricing / Margin Management Planning & Scheduling, • Micro-market Mapping Optimization • Salesforce Automation & • Defect Reduction Nudging • Digital Twins • Analytics on secondary sales • Thro
Slide 26: Engagement – Me@Saint-Gobain Survey
Engagement – Me@Saint-Gobain Survey No of respondents 2021 – 1740 (93%) MY WELL-BEING E-NPS ENGAGEMENT INDEX(%) INDICATOR (%) 94 91 70 93 93 68 India Manufacturing 76 India Manufacturing 14 India Manufacturing 74 NPS Indicator calculation I would recommend my company to friends or relatives as a goo
Slide 27: Acquisition: PRS Permacel
ACQUISITION: PRS PERMACEL
Slide 28: PRS Permacel acquisition overview
➢ Part of J&J until 1999; acquired by PRS group ➢ Active in the Pressure Sensitive Adhesive Tape (PSAT); forward integration to printing of tapes/labels ➢ Major share of Aesthetic decals business with major 2-wheeler manufactures ➢ Manufacturing facility at Ambernath (near Mumbai) ➢ FY22 Est Results
Slide 29: PSAT India Zoom – 11000 MINR; Leveraging Permacel
PSAT India Zoom – 11000 MINR Leveraging Permacel • Huge addressable market. 500 • Large number of RDSO approvals 500 2500 • Established foot print in Aerospace & Defense • Presence in Auto - to leverage SG range and explore 2000 wire harness. • Backward integration 1250 • Opportunity to grow in rest
Slide 30: Thank You
400 PBIT PAT 247 295 229 164 149 125 184 151 Thank You 98 104 106 84 64 (Rs. Crores) 09/10 11/12 13/14 15/16* 17/18 19/20 21/22 29