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Asian Granito India Ltd reports 138% rise in Net Profit in Q3FY20

BY Realty Plus

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Asian Granito India Limited (AGIL), manufacturer of one of India’s leading tiles brand has reported an excellent financial performance in third quarter (October-December). On 81% rise in exports and 317 bps improvement in EBITDA margin, AGIL has reported 138% rise in net profit at Rs. 11.05 crores for the quarter ended December 2019 as against net profit of 4.64 crores in the corresponding period of previous fiscal. Net sales for the quarter ended December 2019 at Rs. 297.86 crores was higher by 1% over previous fiscal’s same period net sales of Rs. 296.22 crores. The revenues increased marginally owing to a slow demand in the industry and anti-dumping imposed on quartz products. EBITDA for the quarter ended December 2019 was reported at Rs. 33.53 crores (EBITDA Margin at 11.26%) as compared to Rs. 23.96 crores ((EBITDA Margin at 8.09%) in the corresponding period last year. This is mainly because of stable average realization of our high margin products, efficient product mix in tiles segment, production efficiency, cost reduction and higher capacity utilization. The Earning EPS was at Rs. 3.70 per share for Q3FY20. Commenting on the results and performance, Kamlesh Patel, Chairman and Managing Director said, "It gives immense satisfaction for the Board of Directors to present the third quarter results for Financial Year 2020. The company’s performance during the quarter has been phenomenal amidst the challenging economic scenario prevailing in the industry. AGIL continues to improve its operational efficiency, ensuring focus on premium product segments and Marble & Quartz division. In addition, the company looks to cater to government projects and key accounts which has seen an upside in the last few quarters. Our overall capacity utilization for the quarter is at 89%. On exports and pricing environment during the quarter, Mr. Patel added. “We are witnessing good traction in overseas markets and our export business stands at 13 % of total revenues in Q3FY20 vs. 7% in the same quarter FY 2019. We have witnessed a considerable jump in the export business in Q3FY20. Average price realization for exports has been stable during the quarter”. The Promoter group shareholding was 34.08% as on 31 st December, 2019. On business front, the company looks to strengthen its identity as the leader in the Indian ceramic industry by consistently introducing innovative and value-added products in the market to keep pace with its valued customers and the important initiatives are as follows:

  1. To leverage the synergies, the company has entered in sanitary ware and recently, the company had launched the CP Fittings and Faucets division to provide Complete Bathroom Solutions under brand AGL.
  2. Company has launched 160 SKUs in Sanitaryware, including Wash Basins, Water Closets (WC), Urinals, etc. and will expand the product range gradually.
  3. Company has set a target to increase its touchpoints to over 10,000, expand the network of exclusive showrooms to 500 and achieve revenue target of Rs. 2,000 crores in the next couple of years

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