investor update –for the quarter ending 30 september 2016

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


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


-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


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


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)


Segment Sales - Slabs Figures in INR Cr.

0


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


11.8 12.08.5 8.0

11.9 11.1

0

5

10

15

20

25

30


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.

[email protected]

+91 11 41686169

Gaurav Sud

Kanav Capital Advisors Pvt. Ltd.

[email protected]

+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.

investor update –for the quarter ending 30 september 2016

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