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.

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