Aro Granite Industries Limited · NSE:AROGRANITE

Aro Granite Industries — Investor Presentation (February 2016)

27 slides from Aro Granite Industries's investor presentation, February 2016

  1. Slide 1: Corporate Overview

    Corporate Overview February 2016

  2. Slide 2: Disclaimer

    Disclaimer Certain statements in this communication may be considered as „forward looking statements‟ within the meaning of applicable law and regulations. These forward-looking statements involves a number of risks, uncertainties and other factors that could cause actual results to differ materiall

  3. Slide 3: Managing Director Message

    Managing Director Message This year was full of challenges for Aro granite industries limited The year started with decline in demand from one of our key market Russia, which was impacted by Ukraine issue. Thereafter fall in currency of Brazil and Europe further reduced demand of Indian granite. Bra

  4. Slide 4: Company Snapshot

    Company Snapshot Started commercial Largest processed Granite 100% export oriented, Listed on NSE Since operation in 1991 exporter out of India located at Hosur, 2007 & BSE Since Awarded Top Export Award by Tamil Nadu 1997 in India CAPEXIL for 2012-13* *2012-13 was the latest awards announced as of

  5. Slide 5: Milestones

    Milestones Tripled Tiling Capacity Achieved Certification Crossed New Warehouse for ISO 9001 Quality Listed on NSE Turnover of Started Commercial Management System Set Up plant for production of Tile Rs.100Cr Received certification for Top Export Cut-To-Size best exporter Award 1995 2001 2009 2013 1

  6. Slide 6: Management Team

    Management Team Year of Joining Total Years of Educational Full Name Age Designation Aro granite Experience Qualification industries ltd. 1988 BSc, Chemistry (H) from Sunil Kumar Arora 57 Promoter & Managing Director 35 (Founder & St. Stephen's College, Promoter) Delhi Post Graduate Degree K. Raghav

  7. Slide 7: Management Team

    Management Team Year of Joining Total Years of Educational Full Name Age Designation Aro granite Experience Qualification industries limited. Bachelor of Business Management Corporate Head – Post Graduate Degree Sahil Arora 27 6 2010 International Marketing in Management from Indian School of Busine

  8. Slide 8: Global Granite Industry

    Global Granite Industry Processed Production (mn. tons)*  Production of stone increasing at CAGR 5.5% since 2009 90 66 68 73 77 81  75% of the granite products are used in Building Material 62 60  Largest consumer of granite globally are 30 China, USA, North America, Japan and European countries

  9. Slide 9: Global Granite Industry

    Global Granite Industry Stone in building material is mainly used for Global Countertop Global Flooring Demand (mn. sq. mtr) Demand (bn. sq. ft) Countertop Flooring Walls 600 300 CAGR: 4.2% 503 CAGR: 6.8% 240 500 409 200 161 400 300 100 2013 2018 2014 2020 Source: Stone-idea.com Source: Grand View R

  10. Slide 10: Indian Granite Industry

    Indian Granite Industry 20% 66% 97% $2.62Bn 9% Statewise Granite Reserves Accounts for Has more than 97% of the Market size Accounts for Madhya Others 20% of the 66% of around total granite approximately more than 9% Karnataka Pradesh % 13% 4 20% world‟s granite 300 shades resources are $2.62 bn. of

  11. Slide 11: Indian Granite Industry

    Indian Granite Industry Finished Stones Internal Use of Stone In India (mn. Tons) India exported 6.8mn. tons of Raw stones in 2014 against Raw 2.3mn. tons of Finished stones 8 Stones 6.1 6 5.7 5.7 5.1 4.5 4.7 USA is largest market for Finished Indian granite, 25% of the total 4 granite were exported

  12. Slide 12: Current Challenges

    Current Challenges Raw Material Government Exchange Oil Engineered Shortage Policy Rate Prices Stone  Closure of Mine  Delay in opening  Brazilian and  Oil producing  A composite new quarries European currency countries are facing material made of  Delay in opening fell more than cash shortage

  13. Slide 13: Current Challenges – Dramatic Fall of Brazilian Real

    Current Challenges – Dramatic Fall of Brazilian Real 110% 80% 50% 20% 1-Oct-14 1-Oct-15 1-Dec-14 1-Dec-15 1-Nov-14 1-Feb-15 1-Mar-15 1-Nov-15 1-Jun-14 1-Sep-14 1-Jan-15 1-Apr-15 1-Jun-15 1-Sep-15 1-Jan-16 1-Jul-14 1-Jul-15 1-May-14 1-Aug-14 1-May-15 1-Aug-15 -10% Brazilian Real Indian Rupee Percenta

  14. Slide 14: Business Strategy

    Business Strategy Manufacturing Raw Customer Exports Facility Material Relations  State-of-the-art  92% of revenue comes  Supply more than 100  We have very strong manufacturing facility from exports colors ranges relation with our customers  Machines sourced from  We have exports in more  So

  15. Slide 15: Competitive Advantage

    Competitive Advantage  Located at Hosur near to Granite  Our presence in Hosur gives us Hub conveniently located near easy access Bangalore Location Access to Best Raw material  We have overseas suppliers for  Access to Granite Mines in South raw material Indian states  Our Managing Director Su

  16. Slide 16: Our Infrastructure

    Our Infrastructure Over 35,000 sqm of covered shed area Handling Equipment Tile Plant Slab Plant Gantry Cranes 3 53 Blade cutting Centre 4 Jumbomatic Gangsaws 12 EOT Cranes 20 Topping Centre 1 20 Head Polishing Line 3 Calibration Line 1 12 head Grinding line 1 Epoxy line 1 Flaming machine 1 20 Head

  17. Slide 17: New Infrastructure

    New Infrastructure Warehouse Cut-To-Size  11,000 sqm Warehouse to store and  2 nos. CNC Bridge display entire range of products cutting machines  8 EOT Cranes and dedicated inspection areas 17

  18. Slide 18: Business Segments

    Business Segments Slab Tile  Contributes 81% of our sales  Contributes 19% of our sales  Installed capacity 5,85,000 Sq. mtr per annum,  Installed capacity 3,60,000 Sq. mtr per annum,  Capacity utilization 92%  Capacity utilization 67%  Process larger block for granite slab and sell them  Pr

  19. Slide 19: New Business Segment: Cut-to-Size

    New Business Segment: Cut-to-Size  These are pre designed  We have purchased 2 CNC Bridge cutting machines to deliver countertop, tabletop or value added services through Cut-To-Size by supplying ready to stairs which are available as install materials for Projects and Homes, both Domestically and

  20. Slide 20: Exports

    Exports Aro Export destinations Aro granite industries limited exports to over 50 countries 20

  21. Slide 21: Financial Overview

    Financial Overview Revenues Figures in INR Cr. EBITDA Figures in INR 300 260 260 40.0 38.9 33.8 188 30.0 23.8 25.0 200 153 159 22.0 20.3 133 20.0 100 10.0 0 0.0 2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 2015 Profit After Tax Figures in INR Cr. Debt/Equity 25 21.1 1 0.78 0.77 0.77 20 16.

  22. Slide 22: Balance Sheet

    Balance Sheet Figures in INR Cr. 2015 2014 2013 2012 2011 2010 Share Capital 15.30 15.30 10.20 10.20 10.20 10.36 Total Reserves 139.39 126.62 112.42 102.31 94.71 87.02 Secured Loans 10.16 0.00 6.98 3.12 4.84 47.43 Trade Payables 18.69 21.25 15.03 24.27 11.54 13.73 Short Term Borrowings 108.77 109.19

  23. Slide 23: Key Ratios

    Key Ratios 2015 2014 2013 2012 2011 2010 Earnings Per Share (Rs) 10.91 13.79 11.04 8.61 9.31 10.27 EBITM (%) 9.81 13.29 10.76 10.07 10.39 14.03 PATM (%) 6.49 8.32 5.96 5.47 6.27 8.06 ROA (%) 5.55 7.80 4.80 4.33 5.35 6.27 ROE (%) 11.25 15.95 9.58 8.08 9.39 11.29 Inventory Days 144.05 119.23 136.80 14

  24. Slide 24: Ownership structure

    Ownership structure Shareholding Pattern As on 31 Dec 2015 Top 5 Shareholders as on 31 Dec 2015 Others Promoter Sunil Kumar Others Arora 32% 47% 41% 49% 10% 10% 2% 4% 2%3% Dilip Kumar Lekhi FII Indian Body Corp. Bharti Pitti Sujata Arora Shares Outstanding 1.53 Cr Surefin Financial Market Cap (as on

  25. Slide 25: Awards & Achievements

    Awards & Achievements “Star Export House” Integrated Management “Top Export Award 2012-13” Systems (IMS) Certification Certification from Ministry of “Special Export Award” Commerce and Industry First granite Awarded for outstanding company in India export performance for 7 years in a row 25

  26. Slide 26: Outlook / Future Growth Drivers

    Outlook / Future Growth Drivers New display warehouse Foray into natural quartzite Cut to Order Expansion into new geographies New machines and cranes Inventory & Working Capital Management Import of raw blocks Cost optimization 26

  27. Slide 27: For more information, please contact

    For more information, please contact  investorgrievance@arotile.com  +91 43 4425 2100 Registered Office: #1001, I0th Floor, DLF Tower A, Jasola , New Delhi - 110 025. (INDIA) Corporate Office & Works: Koneripalli Village, Shoolagiri (Via), Hosur ( TK) - 635 117, Tamilnadu, INDIA. © Aro granite ind

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