Asian Granito on a strong growth momentum for FY22
Company News

Asian Granito on a strong growth momentum for FY22

Asian Granito India Limited (AGIL), one of India's leading tile companies, is aiming to continue the strong growth momentum in FY 22. Strategic growth initiatives, operational efficiencies, financial prudence, geographical and product expansion along with low capex and asset light model for expansion are likely to drive the growth in the revenue and margins for the current financial year. Company has recently announced a rights issue of Rs 225 cr, proceeds of the issue to be utilised to reduce debt and for expansion purpose.

For the Q4FY21, the company posted healthy 68% growth in the net sales, 100% growth in EBITDA and 181% growth in Net profit Y-o-Y. Exports for Q4FY21 registered 42% growth. This performance was achieved on the back of robust demand in the tier 2,3 cities and rural areas along with strong demand from exports.

Kamlesh Patel, Chairman and Managing Director, Asian Granito India Limited said, "Company has taken many initiatives in the last few years for improving operational efficiency, financial prudence, cost optimisation which has resulted in the strong performance in the Q4FY21. Further in-order to arbitrage the price of natural gas, management has decided to replace natural gas with Propane gas whenever the price of propane goes below natural gas price. We believe that demand is likely to remain strong in domestic as well as international markets on account of government spending, revival of demand in tier 2 and 3 cities, replacement demand etc."

The company’s average capacity utilisations for the Q4FY21 was 95%, owing to good domestic and international demand. With an improvement in operational efficiency, financial prudence and healthy product mix, EBITDA margins of the company have improved to 9.5% in the quarter ended March 21.

"The company has gradually shifted from a B2B to B2C business model, focusing on asset light and capital light model for expansion. Today, retail sales contribute 42% of the company's total sales which was around 20% a few years back. The improvement in retail sales has resulted in creating a strong brand value for the company, reduced dependency on low margin project business and improvement in margins. Strategically company has reduced its overall consolidated debt by Rs. 35 crores, resulting in debt equity ratio of less than 0.5x. Company is further committed to reduce debt in coming years," said Patel.

Company targets to increase its retail touch points to over 10,000, expand exclusive showrooms to over 500. Going forward, the company plans to increase retail sales to 50% of total sales.

Asian Granito India Limited has the widest range of products including, ceramic floor, digital wall, vitrified, parking, porcelain, glazed vitrified, outdoor, natural marble, composite marble and quartz. To provide a complete bathing solution to its customers, the company added CP fittings and faucets to its sanitary division. It believes that the ceramic industry will continue to show impressive performance in coming years. The company is looking forward to repeating the current year’s success in the coming years too.

Asian Granito India Limited (AGIL), one of India's leading tile companies, is aiming to continue the strong growth momentum in FY 22. Strategic growth initiatives, operational efficiencies, financial prudence, geographical and product expansion along with low capex and asset light model for expansion are likely to drive the growth in the revenue and margins for the current financial year. Company has recently announced a rights issue of Rs 225 cr, proceeds of the issue to be utilised to reduce debt and for expansion purpose. For the Q4FY21, the company posted healthy 68% growth in the net sales, 100% growth in EBITDA and 181% growth in Net profit Y-o-Y. Exports for Q4FY21 registered 42% growth. This performance was achieved on the back of robust demand in the tier 2,3 cities and rural areas along with strong demand from exports. Kamlesh Patel, Chairman and Managing Director, Asian Granito India Limited said, Company has taken many initiatives in the last few years for improving operational efficiency, financial prudence, cost optimisation which has resulted in the strong performance in the Q4FY21. Further in-order to arbitrage the price of natural gas, management has decided to replace natural gas with Propane gas whenever the price of propane goes below natural gas price. We believe that demand is likely to remain strong in domestic as well as international markets on account of government spending, revival of demand in tier 2 and 3 cities, replacement demand etc. The company’s average capacity utilisations for the Q4FY21 was 95%, owing to good domestic and international demand. With an improvement in operational efficiency, financial prudence and healthy product mix, EBITDA margins of the company have improved to 9.5% in the quarter ended March 21. The company has gradually shifted from a B2B to B2C business model, focusing on asset light and capital light model for expansion. Today, retail sales contribute 42% of the company's total sales which was around 20% a few years back. The improvement in retail sales has resulted in creating a strong brand value for the company, reduced dependency on low margin project business and improvement in margins. Strategically company has reduced its overall consolidated debt by Rs. 35 crores, resulting in debt equity ratio of less than 0.5x. Company is further committed to reduce debt in coming years, said Patel. Company targets to increase its retail touch points to over 10,000, expand exclusive showrooms to over 500. Going forward, the company plans to increase retail sales to 50% of total sales. Asian Granito India Limited has the widest range of products including, ceramic floor, digital wall, vitrified, parking, porcelain, glazed vitrified, outdoor, natural marble, composite marble and quartz. To provide a complete bathing solution to its customers, the company added CP fittings and faucets to its sanitary division. It believes that the ceramic industry will continue to show impressive performance in coming years. The company is looking forward to repeating the current year’s success in the coming years too.

Next Story
Infrastructure Urban

Trump-Backed $100 Billion Stargate to Use Solar Power for AI Infra

A $100 billion joint venture, endorsed by former President Donald Trump, is set to advance artificial intelligence in the U.S. and will rely partly on renewable energy sources such as solar power and batteries, favored by his climate-focused predecessor.The Stargate venture, announced on January 23, 2025, involves SoftBank Group Corp., OpenAI, and Oracle Corp. These companies will invest $100 billion to establish infrastructure in the U.S., including data centres for OpenAI. Although executives highlighted a potential $500 billion expansion, they did not specify energy sources for the project...

Next Story
Building Material

JK Cement Acquires Majority Stake in Saifco Cement to Expand in J&K

JK Cement has made a significant move in its growth strategy by acquiring a 60% equity stake in Saifco Cement, a cement manufacturer based in Srinagar, Jammu and Kashmir. The acquisition, valued at approximately Rs 1.74 billion, was approved during a board meeting on January 25, 2025.Located in Khunmoh, Srinagar, Saifco's integrated manufacturing unit, which includes both clinker and grinding capacities, aligns with JK Cement's expansion plans. Saifco has an annual turnover of around Rs 860 million, and this acquisition not only strengthens JK Cement's presence in the region but also offers a ..

Next Story
Infrastructure Transport

Etihad Unveils Train Connecting Dubai and Abu Dhabi in 30 Minutes

Etihad Rail has announced the launch of a new high-speed passenger train service between Dubai and Abu Dhabi, set to reduce travel time to just 30 minutes. The trains will travel at speeds of up to 350 km/h, significantly improving connectivity between the two emirates.The announcement was made during an official ceremony at Al Faya Depot, with officials from the Dubai Media Office (DMO) and Abu Dhabi Media Office (ADMO) sharing the news on social media platform X.The high-speed rail route will pass through major destinations and tourist attractions, providing a fast, efficient travel experien..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000