Investor Update – For the Quarter Ending 30th September 2016
October 2016
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 materially from those
suggested by the forward looking statements, important development that could affect the company’s
operations include changes in the industry structure, significant changes in politics and economic
environment in India and overseas, tax laws, import duties, litigation and labour relations.
Aro granite industries limited does not undertake to revise any forward-looking statement that may be
made from time to time by or on behalf of the company.
Aro granite industries limited will not be in any way responsible for any action taken based on such
statement and undertakes no obligation to publicly update these forward looking statement to reflect
subsequent event or circumstances.
2
Company Snapshot
Started commercial operation in 1991
Largest processed Granite exporter out of India
100% export oriented, located at Hosur,
Tamil Nadu
Listed on NSE Since 2007 & BSE Since
1997 in IndiaAwarded Top Export Award by CAPEXIL for 2012-13 , 2013-14*
Supply of over 100 shades of Granite from
India and other countries
Export to more than 50 countries
Installed capacity
Granite Slab: 585,000 Square Meters
Granite Tiles:360,000 Square Meters
Awarded with “Special Export Award” by
CAPEXIL for 7 years in a row
3
CAPEXIL for 2012-13 , 2013-14*
*2013-14 was the latest awards announced as of 2016
Indian Granite Industry
20%
Accounts for
20% of the
world’s granite
resources
66%Has more than
66% of around
300 shades
available in the
world
97%97% of the
total granite
resources are
untapped
$2.62BnMarket size
approximately
$2.62 bn.
9%Accounts for
more than 9%
of the world
stone exports
Statewise Granite Reserves
20%
20%
19%
18%
5%4% 13%
Karnataka
Rajasthan
Gujarat
Andhra
Pradesh
Madhya
Pradesh
Others
Jharkhand
India Stone Export (%)
25%
6%56%
5%
5%
3%
United
States
OthersGermany
United
Kingdom
EmiratesBelgium
Source – Indian Mineral Yearbook 2013
Source - XXVI world marble and stones report 2015
India Processed Stone Export
683842 840 901
1,121 1,112
140 158 194 215302 282
0
400
800
1,200
2009 2010 2011 2012 2013 2014
Total Export Export to US
Figures in USD $ Mn.
4Source - XXVI world marble and stones report 2015
Indian Granite Industry
Raw Stones
FinishedStones
India exported 6.8mn. tons of
Raw stones in 2014 against
2.3mn. tons of Finished stones
4.75.1
5.7 5.76.1
6
8
Internal Use of Stone In India (mn. Tons)
USA is largest market for Finished
Indian granite, 25% of the total
granite were exported to USA
Large players finished products are
4.5 4.75.1
0
2
4
2009 2010 2011 2012 2013 2014
5
Source -XXVI world marble and stones report 2015
Our Infrastructure
Over 35,000 sqm of covered shed area
Gantry Cranes 3
EOT Cranes 20
53 Blade cutting Centre 4
Topping Centre 1
Calibration Line 1
Jumbomatic Gangsaws 12
20 Head Polishing Line 3
12 head Grinding line 1
Handling Equipment Tile Plant Slab Plant
Calibration Line 1
Epoxy line 1
20 Head Polishing line 1
Cross cutting machine 4
Chamfering Machine 1
12 head Grinding line 1
Flaming machine 1
Epoxy lines 3
6
Awards & Updates
� For the second year in the row we have received the TOP EXPORT AWARD* from
CAPEXIL for the top export of Natural Stone (Granite, Marbles, Slates, -
Tiles, Slabs, Blocks etc)
� Though the Indian Natural Stone Industry went through a difficult year in 2015-16
new quarries in the north (Rajasthan) and a few new quarries in Tamil Nadu havenew quarries in the north (Rajasthan) and a few new quarries in Tamil Nadu have
helped us in sales and availability of raw materials
� Markets from Africa and South America have opened up during the end of the
Quarter and are expected to further open up by Q4.
7*The award is for the financial year 2013-14 the latest edition of the awards
The New Warehouse
� 11,000 sqm Warehouse to store and display entire range of products – Space to display 100,000 sqm of finish slabs
� The new warehouse has enabled us to display better current stocks, which we were unable to stocks, which we were unable to do earlier. This has resulted in customers visiting buying more quantity and variety from us.
� Pending works – Road work, landscaping, external/ street lighting, office completion
8
Cut To Size
� 2 CNC machines from GMM, Italy
� We have supplied materials for Jobs in
� During September we finished the installation of our CNC machines enabling us to
take up more cut to size projects
9
� We have supplied materials for Jobs in Japan, Germany, Australia, Poland etc.
� In the US we have supplied materials for � Vanity Tops in Marriot, Washington DC� Vanity Tops for Condos in Chicago� 3000 sft of Black Flooring for the
Renovation of the Ritz, Chicago
Financial Performance
Particulars In Rs. Cr Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16 Q1 FY17 Q2 FY17
Sales 59.85 60.39 45.32 50.02 67.13 63.76
Operating Exp 56.37 56.54 46.69 50.38 60.94 55.54
10
EBITDA 7.09 7.45 2.12 5.96 9.63 8.22
PAT 1.42 2.83 -0.39 2.01 5.00 3.33
EBITDA Margins (in %) 11.85 12.34 4.68 11.92 14.35 12.89
Net Profit/Loss Margins (in %)
2.37 4.69 -0.86 4.00 7.45 5.22
Financial Highlights
� Sales Increased by 5.59 % From 60.39 Crores in Q2 FY 2015-16 to 63.76 Crores in
Q2 FY 2016-17
� EBDITA Increased by 25.08 % from Rs 6.57 Crores in Q2 FY2015-16 to Rs 8.22
Crores in Q2 FY2016-17
� PAT Increased by 17.59 % from Rs 2.83 Crores in Q2 FY2015-16 to Rs 3.33 Crores� PAT Increased by 17.59 % from Rs 2.83 Crores in Q2 FY2015-16 to Rs 3.33 Crores
in Q2 FY2016-17
� EBITDA Margin increased by 2% from 10.88 % in Q2 FY 2015-16 to 12.89 % in Q2
FY 2016-17
11
Financial Overview (Quarterly)
59.9 60.445.3 50.0
67.1 63.8
0
20
40
60
80
100
Q1FY16 Q2FY16 Q3FY16 Q4FY16 Q1FY17 Q2FY17
Revenues Figures in INR Cr.
7.1 7.52.1
6.09.6 8.2
0.0
10.0
20.0
30.0
40.0
Q1FY16 Q2FY16 Q3FY16 Q4FY16 Q1FY17 Q2FY17
EBITDA Figures in INR Cr.
Q1FY16 Q2FY16 Q3FY16 Q4FY16 Q1FY17 Q2FY17 Q1FY16 Q2FY16 Q3FY16 Q4FY16 Q1FY17 Q2FY17
1.42.8 2.0
5.03.3
0
3
6
9
12
15
Q1FY16 Q2FY16 Q3FY16 Q4FY16 Q1FY17 Q2FY17
-0.40
Profit After Tax Figures in INR Cr.
0.93 0.91 0.87 0.90 0.85 0.78
0.00
0.25
0.50
0.75
1.00
1.25
1.50
Q1FY16 Q2FY16 Q3FY16 Q4FY16 Q1FY17 Q2FY17
Debt to Equity Ratio
12
Figures in Lakh Sqm.
5.6 5.44.4 4.3
6.2 6.0
0.00
2.00
4.00
6.00
8.00
10.00
Q1FY16 Q2FY16 Q3FY16 Q4FY16 Q1FY17 Q2FY17
Raw Material Consumption (Cubic Meters) Figures in ‘000
1.72 1.791.48 1.48 1.62 1.62
0
0.5
1
1.5
2
2.5
3
Financial Overview (Quarterly)Sales Volume (Square Meters)
Q1FY16 Q2FY16 Q3FY16 Q4FY16 Q1FY17 Q2FY17
Segment Sales - Slabs Figures in INR Cr.
0
Q1FY16 Q2FY16 Q3FY16 Q4FY16 Q1FY17 Q2FY17
13
Segment Sales - Tiles Figures in INR Cr.
48.0 48.436.8 42.0
55.3 52.7
0
20
40
60
80
100
Q1FY16 Q2FY16 Q3FY16 Q4FY16 Q1FY17 Q2FY17
11.8 12.08.5 8.0
11.9 11.1
0
5
10
15
20
25
30
Q1FY16 Q2FY16 Q3FY16 Q4FY16 Q1FY17 Q2FY17
Financial Overview (Annual)
153 159188
260 260216
0
100
200
300
2011 2012 2013 2014 2015 2016
Revenues Figures in INR Cr.
22.0 20.325.0
38.9 33.8
21.1
0.0
10.0
20.0
30.0
40.0
2011 2012 2013 2014 2015 2016
EBITDA Figures in INR
2011 2012 2013 2014 2015 2016 2011 2012 2013 2014 2015 2016
11.48.8
11.3
21.116.7
5.9
0
5
10
15
20
25
2011 2012 2013 2014 2015 2016
Profit After Tax Figures in INR Cr.
0.540.63
0.78 0.77 0.77 0.90
0
0.25
0.5
0.75
1
2011 2012 2013 2014 2015 2016
Debt to Equity Ratio
14
Sales Breakup FY2016
Top 5 Countries
USA
Others
37%
Segments
Tiles18.7%
7%
15
AustraliaGermanyBelgium
Japan
Poland18%
7%
6%6%
4%
Slabs81.3%
7%
7%
Outlook
� In the coming quarter we plan to start full swing production with our 2 CNC machines (being installed in
September 2016) for CUT-TO-SIZE
� CUT-TO-SIZE is a value added process, that will allow us to sell products at better margins
� We Plan to further commission the warehouse helping us
� Optimize WIP
� Better display of Finished Goods stock to improve visibility
� Optimize current processes to become more efficient and install the ERP
� We exhibited in the Xiamen Stone Fair 2016 and plan to exhibit in 2017 also to help open up new
markets to us like some Asian markets (mainly for CUT-TO-SIZE projects)
16
For any further information, please contact
Sabyasachi Panigrahi
Aro granite industries ltd.
+91 11 41686169
Gaurav Sud
Kanav Capital Advisors Pvt. Ltd.
+91 98101 22432
© Aro granite industries limited. All rights reserved.
The Aro granite industries limited’s Logo is the trademark of Aro granite industries limited. In addition to company data, data from market research agencies, stock exchanges and industry publications has been used
for this presentation. This material was used during an oral presentation; it is not a complete record of the discussion. This work may not be used, sold transferred, adapted, abridged, copied or reproduced in whole or
in part in manner or form or in any media without the prior written consent. All product names and logos mentioned herein are the trademarks or registered trademarks of their respective owners.
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.
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