Grindwell Norton Limited · NSE:GRINDWELL
Grindwell Norton — Investor Presentation (May 2023)
26 slides from Grindwell Norton's investor presentation, May 12, 2023
Slide 1: Exchange filing cover letter for analyst meet presentation
May 12, 2023 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 12, 2023
Slide 3: GNO Organisation
GNO Organisation
Slide 4: Functions and Businesses organisation chart
FUNCTIONS BUSINESSES Abrasives S&M, BH S&M, BH, National Zonal Head App.Engg. Bnd & TW & Finance Singudasu Amit Chnl Head Sales Head Himanshu Prakash Ops (Mora) Deepak Hari Koul Yogesh K. Naresh G. Dubey Patil KJSingh Chindarkar Operations Head-Bnd Abr Prtn Ac.+ Adh & Nag/HP R&D & Proc Indirect Ch S
Slide 5: Economic Update
ECONOMIC UPDATE ➢ RBI lowered GDP growth projection for 2023-24 to 6.5% & remains cognizant of risks posed to growth by geopolitical tensions & global financial market volatility ➢ IIP rose by 5.6% YoY basis in Feb’23; led by a growth in 12 out of 23 sub-groups of manufacturing sector ➢ Consumer Pri
Slide 6: 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 6.4 6.8 6.5 6.9 5.5 3.9 5.7 4.6 4.4 4.89 4.0 3.8 3.3 3.3 3.3 3.38 22-23 (F) 23-24 (F) 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20 20-21 21-22 -0.8 22-23 (F) 23-24 (F) 14-15 15-16 16-17 17-
Slide 7: Broad Recovery Index vs GNO Sales
Index: Broad Recovery : Feb 2020 = 100 GNO Sales : Avg. 2019 = 100 Broad Recovery Index GNO 165 158 157 149 138 127 127 124 112 110 112 110 114 114 109 108 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 Q2 2022 Q3 2022 Q4 2022 Q1 2023 6
Slide 8: GNO Key Indicators and Trends
GNO-Key Indicators Key Indicators and Trends and Trends 7
Slide 9: Key Financial Indicators – Revenue from Operation
KEY FINANCIAL INDICATORS – REVENUE FROM OPERATION (Rs. Crores) Growth Key Financials(As Published) FY 20-21 FY 21-22 FY 22-23 22-23 vs 21-22 Revenue from Operations 1638 2013 2541 26.3% Operating Profit (PBIT) 321 400 494 23.4% Profit Before Tax 317 396 486 22.8% Net Profit for the period 238 295 36
Slide 10: Revenue from Operations Bridge
REVENUE FROM OPERATIONS BRIDGE Apr 21 - Mar 22 Apr 22 – Mar 23 Rs.2013 Rs.2541 Increase Rs.529 crores (26.3%) (Rs. Crores) 9
Slide 11: Revenue from Operation - Bridge
REVENUE FROM OPERATION - BRIDGE Apr 21 - Mar 22 Apr 22 – Mar 23 Rs.2013 Rs.2541 Increase Rs.529 crores (26.3%) (Rs. Crores) 10
Slide 12: GNO: Revenue from Operations & Exports
GNO: REVENUE FROM OPERATIONS & EXPORTS (NET OF EXCISE UP TO FY 2017-18) (Rs. Crores) CAGR: 2016-17 to 2022-2023 2541 GNO Rev. from Op :10.9% Exports :15.7% 2013 1598 1580 1638 1454 1364 16/17 17/18 18/19 19/20 20/21 21/22 22/23 GNO (Total) 2022-23: Increase in Revenue from Operations 26.2% Export gr
Slide 13: 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, Tec h & Digital CAGR 2016-17 to 2022-23: Serv ic es GDP : 4.4% 1,2751,266 Abras ives Abrasives : 7.5% C&P, Tech & Digital Services : 15.4% 1,136 1,000 968 920 931 887 827 877
Slide 14: Key Financial Indicators – Operating Margin
KEY FINANCIAL INDICATORS – OPERATING MARGIN (Rs. Crores) Growth Key Financials(As Published) FY 20-21 FY 21-22 FY 22-23 22-23 vs 21-22 Revenue from Operations 1638 2013 2541 26.3% Operating Profit (PBIT) 321 400 494 23.4% Profit Before Tax 317 396 486 22.8% Net Profit for the period 238 295 362 22.5
Slide 15: Operating Profit Bridge
OPERATING PROFIT BRIDGE Apr 21 - Mar 22 Apr 22 – Mar 23 Rs.400 Rs.494 Increase Rs.94 crores (23.4%) (Rs. Crores) 14
Slide 16: Operating Profit Bridge by segment
OPERRATING PROFIT BRIDGE (Rs. Crores) FY 2021-22 (23.5%) FY 2022-23 Rs.400 Rs.494 Abrasives ~ 4% 15
Slide 17: GNO, Abrasives, C&P – Operating Profit (PBIT)
GNO, ABRASIVES, C&P – OPERATING PROFIT (PBIT) (Rs. Crores) GNO Op. Profit CAGR: CAGR 2016-17 to 2022-23: - Abr. : 8.2% 2016-17 to 2022-23 : 18.1% C&P, Tech & Digital Services : 28.5% 600 494 500 Abrasi ves C&P, Tech and Digital Services GNO (Total) 400 400 321 314 262 300 247 244 229 209 182 200 156
Slide 18: GNO Profitability – ROI & OP Margin (%)
GNO PROFITABILITY – ROI & OP MARGIN (%) ROI OP Margin ROI% OP Margin% 50 48.7 48.6 22 47.6 45 20 40 37.3 35.9 36.6 18.6 18 18.1 35 17.5 32.0 16 30 15.3 14.5 14 25 14.1 20 12.6 12 15 10 16/17 17/18 18/19 19/20 20/21 21/22 22/23 Source: 17 Annual Report
Slide 19: GNO Profits – Operating Profit (PBIT) & PAT
GNO PROFITS – OPERATING PROFIT(PBIT) & PAT (Rs. Crores) GNO Op. Profit CAGR: GNO PAT CAGR: 2016-17 to 2022-23: 18.1% 2016-17 to 2022-23: 20.0% PBIT PAT 494 400 321 262 247 362 229 182 295 238 169 184 151 121 16/17 17/18 18/19 19/20 20/21 21/22 22/23 2022-23 : PBIT increase by : 23.5%; PAT growth: 22
Slide 20: Capex + Acquisition
CAPEX + ACQUISITION (Rs. Crores) Capex Capex 295 149 130 59 67 130 39 50 48 16/17 17/18 18/19 19/20 20/21 21/22 22/23 Source: Annual Report 19
Slide 21: Capex + Acquisition
CAPEX + ACQUISITION (Rs. Crores) Capex + Acquisition 295 129 54 Average 10 Yr 2021-22 2022-23 20
Slide 22: GNO – Dividend Per Share
GNO – DIVIDEND PER SHARE 60% 14.50 16.0 12.00 50% 9.50 11.0 40% 7.50 6.00 30% 5.00 6.0 4.00 20% 1.0 10% Dividend Per Share (Rs.)** 0% -4.0 16/17 17/18 18/19 19/20* 20/21 21/22 22/23 **Note: Dividend per share adjusted for bonus/splits Source: 21 Annual Report
Slide 23: Saint-Gobain
SAINT-GOBAIN
Slide 24: Digital: Customer Connect and 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 25: Engagement – Me@Saint-Gobain Survey
ENGAGEMENT – ME@SAINT-GOBAIN SURVEY No of respondents 2022 – 1968 (95%) ENGAGEMENT INDEX(%) E-NPS 93 68 93 67 India Manufacturing 13 India Manufacturing 74 NPS Indicator calculation I would recommend my company to friends or relatives as a good place to work 2022 2021 Strongly agree Somewhat agree N
Slide 26: Thank You
494 PBIT 400 PAT 321 362 262 247 229 295 182 238 Thank You 184 169 151 121 (Rs. Crores) 16/17 17/18 18/19 19/20 20/21 21/22 22/23 25