Aro Granite Industries Limited · NSE:AROGRANITE
Aro Granite Industries — Q2 FY25 Earnings Presentation
36 slides from Aro Granite Industries's earnings presentation, Nov 26, 2024
Slide 1: Exchange filing cover letter
Date: 26.11.2024 Bombay Stock Exchange Limited National Stock Exchange of India Limited Department of Corporate Services Listing Department Floor 25, P.J. Towers 5th Floor, Exchange Plaza Dalal Street Bandra (E) Mumbai 400001 Mumbai 400051 (SCRIP CODE: 513729) (SYMBOL: AROGRANITE/EQ) Subject: Invest
Slide 2: Investor Presentation Q2 & H1 FY25
Q 2 & H 1 F Y 2 5 N O V E M B E R 2 0 2 4 Investor P R E S E N TAT I O N ARO GRANITE INDUSTRIES LIMITED
Slide 3: Disclaimer
DISCLAIMER This investor presentation has been prepared by Aro Granite Industries Limited and does not constitute a prospectus or placement memorandum or an offer to acquire any securities. This presentation or any other documentation or information (or any part thereof) delivered or supplied should
Slide 4: Table of Contents
TABLE OF CONTENTS 04-07 A b o u t T h e C o m p a n y 08-21 B u s i n e s s M o d e l E v o l u t i o n 22-23 C u r r e n t M a c r o E n v i r o n m e n t 24-25 R e s p o n s i b l e C o r p o r a t e Citizen 26-30 5 Ye a r F i n a n c i a l & Operational Highlights 31-34 Q u a r t e r l y H i g h
Slide 5: About the Company
About the COMPANY 05 C O M P A N Y S N A P S H O T 06 P R O D U C T O F F E R I N G S 07 G L O B A L P R E S E N C E 01
Slide 6: Company Snapshot
COMPANY SNAPSHOT PREMIUM QUALITY PRODUCTS Multi Materials 100+ Natural Stone & Shades of granites Engineered Stone and quartiztes ESTABLISHED GLOBAL BRAND Largest 50+ processed granite Countries exporter out of India About the Company TOP-NOTCH MANUFACTURING CAPABILITIES GROWTH PLATFORM Incorporated
Slide 7: Product Offerings
PRODUCT OFFERINGS Quartz INSTALLED CAPACITY 1,80,000 Sq. Mt. Granite Slabs INSTALLED CAPACITY 5,85,000 Sq. Mt. at Hosur & 1,50,000 Sq. Mt. at Jaipur Granite Tiles INSTALLED CAPACITY 3,60,000 Sq. Mt. 6
Slide 8: Global Presence
GLOBAL PRESENCE CONTINENT WISE - CONTRIBUTION FY24 COUNTRY WISE TOP CONTRIBUTIONS 2024 54% 38.21% 3.49% 54.59% US A EUROPE ASIA AMERICA 15% P O L A ND 0.67% AFRICA 11% G E RMA NY 3.04% 03% AUSTRALIA I TA LY 7
Slide 9: Business Model Evolution
Business Model EVOLUTION 09 T H E G R O W T H P H A S E 13 T H E C H A L L E N G I N G T I M E S 15 C O R R E C T I V E A C T I O N S 16 T R A N S I T I O N O F B U S I N E S S 02 21 S U M M A R Y
Slide 10: Growth Phase – Hosur Tiles
GROWTH PHASE – HOSUR TILES 1991 STARTED COMMERCIAL PRODUCTION WITH CAPACITY OF 90,000 Sq. Mt. 1995 EXPANDED CAPACITY TO 1,80,000 Sq. Mt. 2001 STARTED COMMERCIAL PRODUCTION WITH CAPACITY OF 1,68,000 Sq. Mt. *Capacity as at September 2022 – 3,60,000 Sq. Mt 9
Slide 11: Growth Phase – Hosur Slabs
GROWTH PHASE – HOSUR SLABS The slab plant at Hosur was setup using state–of–the –art manufacturing lines from some of the worlds leading manufacturers. 2003 2012 EXPANDED CAPACITY TO EXPANDED CAPACITY BY 50% TO 1,97,000 Sq. Mt. 3,90,000 Sq. Mt. 2006 2006 DOUBLED TILING CAPACITY TO EXPANDED CAPACITY
Slide 12: 3 Step Value Chain for Made to Order Business
3 STEP VALUE CHAIN FOR PROCURING BLOCKS PROCESSING THE RAW FROM QUARRIES IN BLOCKS TO FINISHED PACKAGING AND HOSUR BASED ON GRANITE SLABS BY SALE TO FINAL ORDERS FROM SAWING, CUTTING CUSTOMER CUSTOMERS AND POLISHING MADE TO ORDER BUSINESS 11
Slide 13: Consistent Performance
CONSISTENT PERFORMANCE REVENUE & PROFITABILITY (₹ IN CRORES) 251 150 78.19 6.54 29.71 21 4 9 0.3 1.5 1995 2002 2006 2011 2014 Revenues Profits 12
Slide 14: The Challenging Times
THE CHALLENGING TIMES Resulting By 2014 in acute shortage By 2012 900+ QUARRIES OF GRANITE of granite By 2010 200+ WERE SHUT DOWN IN MADURAI REGION DUE TO rough blocks QUARRIES OF GRANITE The Bangalore - Hosur cluster ALLEGED IRREGULARITIES IN was well-established and well- WERE SHUT DOWN IN MADURAI
Slide 15: Resulting In
RESULTING IN REVENUE & PROFITABILITY (₹ IN CRORES) 253 237 213 199 171 17 10 6 13 1 2015 2016 2017 2018 2019 Revenues Profits 14
Slide 16: Corrective Actions
CORRECTIVE ACTIONS 01 02 03 04 05 Transition of Providing value Added Multi-Wire Setup a new Further diversified business model to added service like capacities in manufacturing business and Stock & Sell from cut-to-size for Hosur to enable facility in Jaipur forayed into Made to Order margin protec
Slide 17: Transition of Business Model
TRANSITION OF BUSINESS MODEL The Company created state-of-the- With majority of mines shutdown, art 11,000 Sq. Mt. warehouse facility the availability of rough granite posed as a challenge and hence in its Hosur facility to stock and the operations of Make-to-Order showcase its inventory. were no lo
Slide 18: Value Added Service
VALUE ADDED SERVICE The Company setup a Cut-to-Size The setup consisted of Intra CNC unit at its Hosur facility to process bridge sawing and polishing machines. ready to install granites as per specific customer requirements This enabled the Company to cater to specific requirements of large domesti
Slide 19: Multi-Wire Capacity in Hosur
MULTI-WIRE CAPACITY IN HOSUR The Company installed a new Multi-Wire technology is the Multi-Wire granite cutting latest available technology and is more efficient. machine at its facility in Hosur. Multi-Wire machines are useful for sawing rough blocks that are hard and brittle. This enabled the Com
Slide 20: New Granite Slab Plant – Jaipur
NEW GRANITE SLAB PLANT – JAIPUR With advent of Multi-Wire Initial ramp-up technology the granite mined from The Company ramped up production Rajasthan could now be processed. to optimum levels in the first year of operation To efficiently capitalize on the opportunity, in 2019 the Company Capacity e
Slide 21: New Quartz Plant – Hosur
NEW QUARTZ PLANT – HOSUR Imposition of ADD and CVD on Initial ramp-up China by USA for quartz, opened The Company significantly ramped up up the market for Indian production levels in the first year of manufacturers. operation. However, the Company only focused on manufacturing basic designs first.
Slide 22: Summarizing
SUMMARIZING I N I T I AT I V E IMPACT ON BUSINESS IMPACT ON FINANCIALS TRANSITION IN BUSINESS MODEL TO Helped curtail the drop in revenues and Increased the working capital requirement of the STOCK AND SELL loss of business business Incremental CAPEX with no additional topline CUT-TO-SIZE Added a va
Slide 23: Current Macro Environment
Current Macro ENVIRONMENT 23 C H A L L E N G I N G M A C R O ENVIRONMENT 03
Slide 24: Challenging Macro Environment
CHALLENGING MACRO ENVIRONMENT Supply Chain Disruptions Rising interest rates, intended to Inflation resurfaced after an earlier Supply chain disruptions intensified control inflation, increased borrowing period of control, reducing consumer this year due to geopolitical costs for industries like con
Slide 25: Responsible Corporate Citizen
Responsible Corporate CITIZEN 25 C O R P O R AT E S O C I A L RESPONSIBILITY 04
Slide 26: Corporate Social Responsibility
CORPORATE The health centre has manpower of 1 Doctor, SOCIAL 2 Nurses, 1 Pharmacist and a housekeeper. RESPONSIBILITY The Company has developed a ~ 50 to 60 patients are being rural health centre adjacent to treated on a daily basis. the factory premises at Hosur. The health centre has been operatio
Slide 27: Financial & Operational Highlights
Financial & OPERATIONAL HIGHLIGHTS 27 O P E R A T I O N A L H I G H L I G H T S FY 24 28 S U M M A R Y O F P R O F I T A N D L O S S S TAT E M E N T 29 S U M M A R Y O F B A L A N C E S H E E T 05 30 S U M M A R Y O F C A S H F L O W S TAT E M E N T
Slide 28: Operational Highlights FY24
OPERATIONAL HIGHLIGHTS FY 24 PAR T I C U L A R S HOSUR TILES HOSUR SLABS JAIPUR SLABS HOSUR QUARTZ SALES (In Sq. Mt.) 95,079 1,24,659 81,968 1,19,373 PRODUCTION (In Sq. Mt.) 95,924 1,17,073 86,939 1,14,744 CAPACITY UTILISATION 26.65% 18.29% 57.96% 63.75% 27
Slide 29: Summary of Profit and Loss Statement
SUMMARY OF PROFIT AND LOSS STATEMENT (₹ IN CRORES) PAR T I C U L A R S FY20 FY21 FY22 FY23 FY24 REVENUE FROM OPERATIONS 177.71 179.37 224.74 163.90 155.09 OTHER INCOME 3.15 0.63 1.36 0.55 0.38 TOTAL INCOME 180.86 180.00 226.10 164.45 155.47 EBITDA 21.68 24.43 31.45 19.60 31.23 EBITDA MARGIN (%) 12.2
Slide 30: Summary of Balance Sheet
SUMMARY OF BALANCE SHEET (₹ IN CRORES) PAR T I C U L A R S FY20 FY21 FY22 FY23 FY24 SHAREHOLDERS FUND 181.48 187.64 196.42 190.61 192.02 NON CURRENT LIABILITIES 46.20 56.58 79.42 73.81 62.08 LONG TERM BORROWINGS 28.17 41.78 65.32 60.21 46.41 CURRENT LIABILITIES 166.86 160.27 175.53 185.95 190.49 SHO
Slide 31: Summary of Cash Flow Statement
SUMMARY OF CASH FLOW STATEMENT (₹ IN CRORES) PAR T I C U L A R S FY20 FY21 FY22 FY23 FY24 CASH FLOW FROM OPERATING ACTIVITIES 62.94 0.65 (18.15) 13.96 35.03 CASH FLOW FROM INVESTING ACTIVITIES (77.73) (3.94) (6.19) (3.03) 0.04 CASH FLOW FROM FINANCING ACTIVITIES 11.74 2.70 23.94 (14.53) (32.35) NET
Slide 32: Quarterly Highlights
Quarterly HIGHLIGHTS 32 O P E R A T I O N A L H I G H L I G H T S Q 2 F Y 2 5 33 M A N A G E M E N T C O M M E N T A R Y 34 S U M M A R Y O F P R O F I T A N D L O S S S TAT E M E N T 06
Slide 33: Operational Highlights Q2 FY25
OPERATIONAL HIGHLIGHTS Q2 FY25 PAR T I C U L A R S HOSUR TILES HOSUR SLABS JAIPUR SLABS HOSUR QUARTZ SALES (In Sq. Mt.) 15,406 18,884 12,955 27,628 PRODUCTION (In Sq. Mt.) 17,958 21,972 14,846 29,742 CAPACITY UTILISATION 19.95% 11.95% 39.58% 66.09% 32
Slide 34: Management Commentary
“ MANAGEMENT COMMENTARY I am pleased to provide an update on the performance of Aro Granite Industries Limited for Q2FY25. This quarter proved particularly challenging, as our financials were significantly impacted by a drop in demand, primarily within the granite sector in the US markets. This decl
Slide 35: Summary of Profit and Loss Statement
SUMMARY OF PROFIT AND LOSS STATEMENT (₹ IN CRORES) PAR T I C U L A R S Q2FY24 Q1FY25 Q2FY25 Q-o-Q Y- o - Y REVENUE FROM OPERATIONS 37.42 37.55 28.61 (23.82%) (23.55%) OTHER INCOME 1.30 1.18 (2.08) (275.46%) (259.80%) TOTAL INCOME 38.72 38.74 26.53 (31.51%) (31.48%) EBITDA 6.86 6.29 (2.02) (132.12%)
Slide 36: Contact Us
CONTACT US For any further information, please contact Ayush Goel Abhishek Mehra ARO GRANITE INDUSTRIES ARO GRANITE INDUSTRIES T I L A D V I S O R S P R I VAT E LIMITED LIMITED LIMITED REGISTERED OFFICE: ayushgoel@arotile.com abhishek@theinvestmentlab.in # 1 0 0 1 , I 0 t h F l o o r, D L F To w e r
Aro Granite Industries — Q2 FY25 Earnings Presentation on 6ix