Asian Granito India Ltd reports PAT of 5.5 cr

Asian Granito India Limited (AGIL) have declared its Financial Results for Q4FY2019 and Financial Year ended on 31st March, 2019. Highlights of FY2019:-

• Asian Granito India Ltd reported Net Sales of Rs. 1186.7 crore in FY19 as compared to Rs. 1155.6 crore in the previous corresponding period, registering a growth of 2.7%.
• Net Profit for FY 2019 is recorded at Rs. 20.6 crore as against Rs. 52.6 crore in FY 2018, --thereby registering a decline of 60.8%
• EBITDA stood at Rs. 86.5 crore for the FY19 with EBITDA Margin at 7.3%
• PAT Margin for FY 2019 stood at 1.7%, decline of 282 bps compared to same period last year
• On consolidated result performance from Quartz remains encouraging and margins also remains strong, however tiles realization remains under pressure for Financial Year 2019.

Commenting on the results and performance,Kamlesh Patel, Chairman and Managing Director said, "Overall performance during the quarter remains subdued on account of lower volume across the segment, however for full year we have register marginal growth of 3% YoY. Over capacity and higher supply in the industry, rising input costs, pricing pressure from unorganised players were few of the concerns which resulted in lower single digit volume growth in FY2019. Hence margins also remained under pressure on resulting sharp decline in profitability for the year. However we feel that worst is likely to be over for the industry in terms of pricing pressure we expect to see a good growth ahead in terms of volume and value. Demand has started picking up which will further get boost from the recently elected stable government at the centre. We expect double digit growth in FY 2020. Company will further focus on improving margins by focusing on efficiency in operation, focusing on high value products, controlling cost etc. Going forward company will be investing only in expanding capacity in the premium products i.e. Quartz & Marbles and entry in Sanitary ware & CP fitting." During the quarter company approved issue of 50 lakh warrants convertible into equity shares on preferential basis to promoter and non-promoter group. Company will raise Rs. 90 crore from the issue which will be utilised to fund long term capital requirements for future growth of the company, to meet working capital requirement and reduce debt.