Aro Granite Industries Limited · NSE:AROGRANITE
Aro Granite Industries — Q4 FY23 Earnings Presentation
36 slides from Aro Granite Industries's earnings presentation, Jun 13, 2023
Slide 1: Cover letter to stock exchanges
Aro granite industries ltd. Regd. Office: I 001, 10th Floor, DLF Tower A, Jasola, New Delhi - 11O 025. Phone: 91-11-41686169, Fax: 91-11-26941984, E-mail: arodelhi@arotile.com June 13, 2023 Bombay Stock Exchange Limited National Stock Exchange of India Limited Department of Corporate Services Listin
Slide 2: Investor Presentation Q4 FY23
Q 4 F Y 2 3 J U N E 2 0 2 3 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 shoul
Slide 4: Table of Contents
TABLE OF CONTENTS 03-07 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 Y e 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 PA 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
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 Jairpur Granite Tiles INSTALLED CAPACITY 3,60,000 Sq. Mt. 6
Slide 8: Global Presence
GLOBAL PRESENCE CONTINENT WISE - CONTRIBUTION FY23 COUNTRY WISE TOP CONTRIBUTIONS 2023 35% 38.97% 19.72% 35.60% USA EUROPE ASIA AMERICA 14% PO LAND 2.25% AFRICA 12% I NDI A - DTA 3.46% 08% AUSTRALIA G ERM ANY 04% I TALY 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 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 By 2014 By 2012 900+ QUARRIES OF GRANITE By 2010 200+ WERE SHUT DOWN IN MADURAI REGION DUE TO QUARRIES OF GRANITE The Bangalore - Hosur cluster ALLEGED IRREGULARITIES IN WERE SHUT DOWN IN MINING OPERATIONS was well-established and well- MADURAI REGION DUE TO known for its capac
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 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 protection processing
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
Slide 24: Challenging Macro Environment
CHALLENGING MACRO ENVIRONMENT Unprecedented increase Post cooling off of freight rates, High inflation and resultant interest in freight cost. the channel is stuffed with rates have resulted in slowdown in Freight cost which used to be high-cost inventory, resulting US markets which happens to be a
Slide 25: Responsible Corporate Citizen
Responsible Corporate CITIZEN 25 C O R P O R AT E S O C I A L RESPONSIBILITY
Slide 26: Corporate Social Responsibility
CORPORATE The health centre has manpower of 1 Doctor, SOCIAL 2 Nurses, 1 Pharmacist RESPONSIBILITY and a housekeeper. The Company has developed a ~ 50 patients are being rural health centre adjacent to treated on a daily basis. the factory premises at Hosur. The health centre has been operational si
Slide 27: Financial & Operational Highlights
Financial & OPERATIONAL HIGHLIGHTS 27 O P E R AT I O N A L H I G H L I G H T S FY 23 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 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 FY23
OPERATIONAL HIGHLIGHTS FY 23 PA R T I C U L A R S HOSUR TILES HOSUR SLABS JAIPUR SLABS HOSUR QUARTZ SALES (In Sq. Mt.) 1,04,194 2,08,918 88,704 53,488 PRODUCTION (In Sq. Mt.) 1,10,919 2,03,626 89,671 43,121 CAPACITY UTILISATION 30.81 34.81 59.78 23.95 27
Slide 29: Summary of Profit and Loss Statement
SUMMARY OF PROFIT AND LOSS STATEMENT (₹ IN CRORES) PA R T I C U L A R S FY19 FY20 FY21 FY22 FY23 REVENUE FROM OPERATIONS 172.44 177.71 179.37 224.74 163.90 OTHER INCOME 2.07 3.15 0.63 1.36 0.55 TOTAL INCOME 174.51 180.86 180.00 226.10 164.45 EBITDA 25.85 21.68 24.43 31.44 19.60 EBITDA MARGIN (%) 14.
Slide 30: Summary of Balance Sheet
SUMMARY OF BALANCE SHEET (₹ IN CRORES) PA R T I C U L A R S FY19 FY20 FY21 FY22 FY23 SHAREHOLDERS FUND 180.22 181.48 187.64 196.42 190.61 NON CURRENT LIABILITIES 8.19 18.04 14.80 14.10 13.6 LONG TERM BORROWINGS 13.72 28.16 41.78 65.32 60.21 CURRENT LIABILITIES 26.23 44.51 33.62 41.55 41.12 SHORT TER
Slide 31: Summary of Cash Flow Statement
SUMMARY OF CASH FLOW STATEMENT (₹ IN CRORES) PA R T I C U L A R S FY19 FY20 FY21 FY22 FY23 CASH FLOW FROM OPERATING ACTIVITIES (7.64) 62.94 0.65 (18.15) 13.96 CASH FLOW FROM INVESTING ACTIVITIES (26.32) (77.73) (3.95) (6.19) (3.03) CASH FLOW FROM FINANCING ACTIVITIES 36.26 11.74 2.70 23.94 (14.53) N
Slide 32: Quarterly Highlights
Quarterly HIGHLIGHTS 32 O P E R AT I O N A L H I G H L I G H T S Q 4 F Y 2 3 33 M A N A G E M E N T C O M M E N TA 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
Slide 33: Operational Highlights Q4 FY23
OPERATIONAL HIGHLIGHTS Q4 FY 23 PA R T I C U L A R S HOSUR TILES HOSUR SLABS JAIPUR SLABS HOSUR QUARTZ SALES (In Sq. Mt.) 22,352 66,754 25,831 21,678 PRODUCTION (In Sq. Mt.) 25,003 44,141 22,424 15,841 CAPACITY UTILISATION 27.78 30.18 59.79 35.20 32
Slide 34: Management Commentary
MANAGEMENT COMMENTARY I am pleased to present the earnings update for Aro Granite Industries Limited. In the past year, we encountered several challenges that impacted our business operations. However, we are delighted to inform you that we have successfully overcome these hurdles and are witnessing
Slide 35: Summary of Profit and Loss Statement
SUMMARY OF PROFIT AND LOSS STATEMENT (₹ IN CRORES) PA R T I C U L A R S Q4FY22 Q3FY23 Q4FY23 Q-o-Q Y- o - Y REVENUE FROM OPERATIONS 57.62 34.3 46.96 36.91% (18.50%) OTHER INCOME 1.21 0.18 0.05 (72.22%) (95.87%) TOTAL INCOME 58.83 34.48 47.01 36.34% (20.09%) EBITDA 6.39 (0.36) 7.08 (2,066.67%) 10.80%
Slide 36: Contact Us
CONTACT US For any further information, please contact Sabyasachi Panigrahi 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: sabyasachi@arotile.com abhishek@theinvestmentlab.in # 1 0 0 1 , I 0 t h F l o o r, D L
Aro Granite Industries — Q4 FY23 Earnings Presentation on 6ix