Asian Granito India Ltd reports Net Profit of Rs. 24.9 crore in Q3FY21 – rise of 126%

New Delhi: Asian Granito India Limited (AGIL), manufacturer of one of India’s leading tiles brand has reported net profit of Rs. 24.9 crore during Q3FY21, growth of 126% as compared to net profit of Rs. 11 crore in the corresponding period last year. Consolidated Net sales for the quarter ended December 2020 was reported at Rs. 384.6 crores, up by 29% over previous fiscal’s same period net sales of Rs. 297.9 crore. Consolidated EBITDA for the quarter ended December 2020 was reported Rs. 49.5 crore. The Company’s key to success was its impact in the overseas market, steps taken to enhance the operations, efficiency and better retail presence. During the quarter, tiles division has seen strong traction in demand from domestic as well as from export market, resulting strong revenue growth.

Financial Highlights (Consolidated)

  Q3FY21 Q3FY20 Y-O-Y 9MFY21 9MFY20 Y-O-Y
Net Sales (Rs.  Cr) 384.5 297.9 29.1% 858.2 966.8 -11.2%
EBITDA (Rs.  Cr) 49.5 33.5 47.6% 94.6 97.0 -2.5%
EBITDA Margin (%) 12.9 11.3 160 bps 11.0 10.0 100 Bps
Net Profit (Rs.  Cr) 24.9 11.0 125.6% 37.2 34.9 6.8%
Net Profit Margin (%) 6.5 3.7 280 bps 4.3 3.6 70 Bps

The Chairman and Managing Director, Mr. Kamlesh Patel, provided his remarks on the Company’s performance as, “In the third quarter of the current financial year, the demand of our products across various markets cemented our success as we continued to focus on value addition. The strong result is reflected by our topline growth of 29%. Our popularity has been marked in both urban and rural markets, a trend which has been continuing since the last two quarters. The former, in particular, has revived in the real estate segment from December 2021. In the Union Budget 2021, numerous initiatives were announced for injecting optimism in the housing segment and propelling demand for Tiles & Bathware products.

The Covid-19 pandemic adversely affected many companies across the globe, impacting a major part of FY21. However, the demand and production have surged after several restrictions were lifted, thereby flourishing the business environment with the hope of a better tomorrow. Our products are garnering demand in the global markets, which establishes our trustworthy and value-oriented brand image. Other crucial factors which proved advantageous for our Company were the anti-China sentiments, lesser gas prices and massive export orders from the US, European and Middle East markets. To capitalise on the growing international demand, we are aiming to expand our presence to more than 120 countries. The demands from foreign countries will be managed by AGL’s Export House.

Mr. Patel continued, “AGL has consistently delivered on its promise of value addition and cost-effective solutions, which appeal to our customers as a brand they can trust. As a result, the products have been welcomed into various markets and their demand has been very promising. In the near future, we will deploy branding strategies which will establish our dominance in the market and widen our product portfolio. Our dedication towards expanding our product offerings, entering new markets and enhancing operating efficiencies remains the same. We have set a target to increase our touch points to more than 10,000 and have 500 exclusive showrooms. The Company has drafted both short and long-term strategies to ensure its presence and demand in the market.

9 Months Results Highlights: –

Asian Granito India Ltd reported net sales of Rs. 858.2 crore for the 9 months ended December 2020 as compared to previous fiscal’s same period net sales of Rs. 966.8 crores. EBITDA for 9 Months ended December 2020 was reported at Rs. 94.6crores (EBITDA Margin at 11.0%) as compared to Rs. 97crores (EBITDA Margin at 10.0%) in the corresponding period last year. Net Profit for the 9MFY21 stood at Rs. 37.2crores (Net Profit Margin 4.3%) as compared to net profit of Rs. 34.9crores (Net Profit Margin 3.6%).

Asian Granito India Ltd has the widest range of tiles and bathroom fittings, which include ceramic floor, vitrified, digital wall, porcelain, parking, natural marble, Quartz, and much more. With the aim of providing a wholesome bathing solution, the Company has introduced CP Fittings and Faucets to the sanitary division. As we move ahead, we are optimistic about our volume growth and the inspiring operating leverage. The reopening of the metro areas will give us new opportunities to penetrate the markets.