Capitaline

Results 11-Aug-23

Analysis

Grauer & Weil (India)

Sales up 1%, OP up 20%

Grauer & Weil (India) consolidated net sales increased 0.70% to Rs 200.26 crore in Q1FY24 compared to Q1FY23. Sales of Engineering segment has gone up 2.55% to Rs 7.63 crore (accounting for 3.80% of total sales). Sales of Mall segment fell 0.11% to Rs 9.08 crore (accounting for 4.52% of total sales). Sales of Surface Finishings segment has gone up 0.66% to Rs 184.20 crore (accounting for 91.68% of total sales).

Profit before interest, tax and other unallocable items (PBIT) have jumped 22.29% to Rs 54.15 crore. PBIT of Engineering segment rose 18.63% to Rs 1.21 crore (accounting for 2.23% of total PBIT). PBIT of Mall segment fell 5.68% to Rs 6.81 crore (accounting for 12.58% of total PBIT). PBIT of Surface Finishings segment rose 28.00% to Rs 46.13 crore (accounting for 85.19% of total PBIT).

PBIT margin of Engineering segment rose from 13.71% to 15.86%. PBIT margin of Mall segment fell from 79.43% to 75.00%. PBIT margin of Surface Finishings segment rose from 19.69% to 25.04%. Overall PBIT margin rose from 22.19% to 26.95%.

Operating profit margin has jumped from 20.06% to 23.86%, leading to 19.75% rise in operating profit to Rs 47.78 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 52.72% to 46.25%. Purchase of finished goods cost fell from 0.80% to 0.45%. Employee cost increased from 9.44% to 11.02%. Other expenses rose from 18.45% to 20.82%.

Other income rose 40.93% to Rs 5.75 crore. PBIDT rose 21.71% to Rs 53.53 crore. Provision for interest fell 38.64% to Rs 0.27 crore.

PBDT rose 22.32% to Rs 53.26 crore. Provision for depreciation rose 2.61% to Rs 5.12 crore.

Profit before tax grew 24.88% to Rs 48.14 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 11.24 crore, compared to Rs 9.72 crore. Effective tax rate was 23.35% compared to 25.21%.

Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 27.99% to Rs 36.90 crore.

Promoters’ stake was 69.05% as of 30 June 2023 ,compared to 69.05% as of 30 June 2022.

Full year results analysis

Net sales (including other operating income) of Grauer & Weil (India) has increased 27.79% to Rs 981.82 crore. Sales of Engineering segment has gone up 37.34% to Rs 100.34 crore (accounting for 10.18% of total sales). Sales of Mall segment rose 86.50% to Rs 36.46 crore (accounting for 3.70% of total sales). Sales of Surface Finishings segment has gone up 25.11% to Rs 848.91 crore (accounting for 86.12% of total sales).

Profit before interest, tax and other unallocable items (PBIT) has jumped 31.72% to Rs 173.27 crore. PBIT of Engineering segment rose 22.29% to Rs 10.15 crore (accounting for 5.86% of total PBIT). PBIT of Mall segment rose 127.92% to Rs 28.49 crore (accounting for 16.44% of total PBIT). PBIT of Surface Finishings segment rose 21.57% to Rs 134.63 crore (accounting for 77.70% of total PBIT).

PBIT margin of Engineering segment fell from 11.36% to 10.12%. PBIT margin of Mall segment rose from 63.94% to 78.14%. PBIT margin of Surface Finishings segment fell from 16.32% to 15.86%. Overall PBIT margin rose from 17.06% to 17.58%.

Operating profit margin has jumped from 14.66% to 15.82%, leading to 37.92% rise in operating profit to Rs 155.34 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 56.73% to 56.14%. Purchase of finished goods cost fell from 0.62% to 0.44%. Employee cost decreased from 10.34% to 9.58%. Other expenses fell from 18.05% to 18.00%.

Other income rose 37.73% to Rs 19.02 crore. PBIDT rose 37.90% to Rs 174.36 crore. Provision for interest fell 25.90% to Rs 1.86 crore. Loan funds declined from Rs 24.69 crore as of 31 March 2022 to Rs 24.44 crore as of 31 March 2023. Inventories declined from Rs 143.20 crore as of 31 March 2022 to Rs 127.03 crore as of 31 March 2023. Sundry debtors were higher at Rs 183.71 crore as of 31 March 2023 compared to Rs 129.92 crore as of 31 March 2022. Cash and bank balance rose to Rs 287.33 crore as of 31 March 2023 from Rs 257.95 crore as of 31 March 2022. Investments rose to Rs 17.28 crore as of 31 March 2023 from Rs 0.64 crore as of 31 March 2022

PBDT rose 39.19% to Rs 172.5 crore. Provision for depreciation rose 0.92% to Rs 19.81 crore. Fixed assets declined from Rs 246.79 crore as of 31 March 2022 to Rs 241.65 crore as of 31 March 2023. Intangible assets increased from Rs 0.85 crore to Rs 5.38 crore.

Profit before tax EO grew 46.40% to Rs 152.69 crore. The company reported EO expense of Rs 72 lakh related to loss of inventories due to a fire in one of the production unit of the company compared to EO income of Rs 2.42 crore. PBT after EO rose 42% to Rs 151.97 crore.

Provision for tax was expense of Rs 39.01 crore, compared to Rs 28.05 crore. Effective tax rate was 25.67% compared to 26.26%.

Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 43.42% to Rs 112.96 crore.

Equity capital stood at Rs 22.67 crore as of 31 March 2023 to Rs 22.67 crore as of 31 March 2022. Per share face Value remained same at Rs 1.00.

Promoters’ stake was 69.05% as of 31 March 2023 ,compared to 69.05% as of 31 March 2022.

The scrip is currently trading at Rs 117

Grauer & Weil (India) : Consolidated Results
Particulars	2306 (03)	2206 (03)	Var.(%)	2303 (12)	2203 (12)	Var.(%)
Net Sales	200.26	198.86	1	981.82	768.29	28
OPM (%)	23.9	20.1		15.8	14.7
OP	47.78	39.9	20	155.34	112.63	38
Other Inc.	5.75	4.08	41	19.02	13.81	38
PBIDT	53.53	43.98	22	174.36	126.44	38
Interest	0.27	0.44	-39	1.86	2.51	-26
PBDT	53.26	43.54	22	172.5	123.93	39
Depreciation	5.12	4.99	3	19.81	19.63	1
PBT	48.14	38.55	25	152.69	104.3	46
Share of Profit/(Loss) from Associates	0	0		0	0.09
PBT before EO	48.14	38.55	25	152.69	104.39	46
EO Income	0	0	PL	-0.72	2.42	PL
PBT after EO	48.14	38.55	25	151.97	106.81	42
Taxation	11.24	9.72	16	39.01	28.05	39
PAT	36.9	28.83	28	112.96	78.76	43
Minority Interest (MI)	0	0		0	0
Net profit	36.9	28.83	28	112.96	78.76	43
EPS (Rs)*	#	#		5.0	3.4
Notes
* EPS is on current equity of Rs 22.67 crore, Face value of Rs 1, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database

Grauer & Weil (India) : Consolidated Segment Results
	% of (Total)	2306 (03)	2206 (03)	Var.(%)	% of (Total)	2303 (12)	2203 (12)	Var.(%)
Sales
Engineering	4	7.63	7.44	3	10	100.34	73.06	37
Mall	5	9.08	9.09	0	4	36.46	19.55	87
Surface Finishings	92	184.2	183	1	86	848.91	678.54	25
Total Reported Sales	100	200.91	199.53	1	100	985.71	771.15	28
Add: Unallocable		5.1	3.41	50		0	0	-
Net Sales		206.01	202.94	2		985.71	771.15	28
PBIT
Engineering	2	1.21	1.02	19	6	10.15	8.3	22
Mall	13	6.81	7.22	-6	16	28.49	12.5	128
Surface Finishings	85	46.13	36.04	28	78	134.63	110.74	22
Total PBIT	100	54.15	44.28	22	100	173.27	131.54	32
Less : Interest		0.27	0.44	-39		1.86	2.51	-26
Add: Other un-allcoable		-5.74	-5.29	9		-19.44	-22.22	13
PBT		48.14	38.55	25		151.97	106.81	42

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