Grindwell Norton reports mixed financial results for Q1 2024, net sales reach five-quarter high.

Grindwell Norton, a leading player in the abrasives industry, has recently declared its financial results for the quarter ending June 2024. The company has reported a flat performance for the quarter, with a slight improvement in its overall score from -6 to -1 in the last three months.

One of the key highlights of the financial results is the company's net sales, which have reached a five-quarter high of Rs 705.60 crore. This indicates a positive trend in the near term for Grindwell Norton. Additionally, the company has also shown a high dividend payout ratio of 49.06% annually, which is the highest in the last five years. This shows that the company is distributing a higher proportion of its profits as dividends to its shareholders.

However, there are some areas of concern for Grindwell Norton based on its financial results. The profit before tax (PBT) less other income has fallen by -5.21% year on year, standing at Rs 109.64 crore for the quarter. This indicates a negative trend in the near term for the company's PBT. Another concerning factor is the debtors turnover ratio, which is at its lowest in the last five half-yearly periods at 7.47 times. This suggests that the company's pace of settling its debtors has slowed down.

Overall, Grindwell Norton's financial results for the quarter ending June 2024 show a mixed performance. While the company has shown positive trends in terms of net sales and dividend payout ratio, there are also some areas of concern such as the decline in PBT and slow pace of settling debtors. MarketsMOJO has given a 'Hold' call for the company's stock based on these financial results.