Asian Granito India Limited (AGIL) conducted two crucial meetings on September 18, as part of its ongoing corporate restructuring process. The National Company Law Tribunal (NCLT)-convened meetings were held to consider a composite scheme of arrangement involving a demerger between AGIL, Adicon Ceramica Tiles Private Limited, and Adicon Ceramics Limited.

Meeting Details

The meetings, which took place at the Ahmedabad Management Association, were chaired by Mr. S. B. Gautam, a former NCLT member. The schedule was as follows:

Purpose and Proceedings

The primary objective of these meetings was to seek approval from both secured and unsecured creditors for the proposed demerger scheme. During each session, creditors were given the opportunity to vote by poll on the resolution concerning the scheme of arrangement.

Demerger Scheme

The composite scheme of arrangement under consideration involves a demerger between:

1. Asian Granito India Limited
2. Adicon Ceramica Tiles Private Limited
3. Adicon Ceramics Limited

This restructuring aims to reorganize the company's operations, potentially leading to improved efficiency and focused business strategies for each entity involved.

Voting and Results

Both meetings saw creditors casting their votes through a polling process. The company has stated that the results of these polls will be:

1. Uploaded on the official website of Asian Granito India Limited ( www.aglasiangranito.com )
2. Notified separately to the stock exchanges

Regulatory Compliance

The meetings and subsequent disclosures are in line with regulatory requirements, including:

• Regulation 30 read with Schedule III of SEBI (Listing Obligations and Disclosures) Regulations, 2015
• Regulation 37 of the SEBI (Listing Obligations and Disclosures) Regulations, 2015

Management Statement

Dhruti Trivedi, Company Secretary and Compliance Officer of Asian Granito India Limited, confirmed that the required quorum was present for both meetings, ensuring their validity under NCLT directions.

The outcome of these meetings and the subsequent poll results will be crucial in determining the future structure of Asian Granito India Limited and its associated companies. Stakeholders and market observers will be keenly awaiting the official announcement of the voting results to gauge the path forward for this significant corporate action.

Asian Granito India Limited , a leading manufacturer of ceramic tiles, has reported its highest-ever quarterly revenue, showcasing robust growth in the third quarter of the fiscal year 2022. The company's performance highlights its resilience and strategic positioning in the market despite challenging conditions.

Record-Breaking Revenue

Asian Granito posted a consolidated revenue of Rs 436.60 crore for the quarter ended December 31, 2021. This represents a significant 16.10% growth compared to the previous quarter, marking a new milestone for the company in terms of quarterly revenue.

Domestic Market Performance

The impressive revenue growth was primarily driven by two key factors:

1. Volume Growth: The company experienced an increase in sales volume in the domestic market.
2. Improved Realizations: Better pricing in the domestic market contributed to the revenue boost.

EBITDA Margins and Cost Pressures

Despite the strong top-line growth, Asian Granito faced some challenges on the profitability front:

• EBITDA margin declined by 41 basis points to 8.50% from 8.90% in Q2 FY22.
• The margin compression was mainly attributed to rising input costs, particularly gas prices.
• Gas prices surged from Rs 42.00 per scm to Rs 72.00 per scm during the period, impacting the company's cost structure.

Export Performance

While domestic performance was strong, the export segment faced headwinds:

• Export revenues stood at Rs 43.30 crore.
• Performance remained muted due to higher shipping freight costs and container shortages.

Debt-Free Status and Rights Issue

In a significant development for its financial health:

• Asian Granito became completely debt-free at the standalone level.
• This was achieved after the successful completion of a rights issue.
• The company utilized the proceeds to pay off all outstanding debt.

Capacity Utilization

The company reported strong operational efficiency:

• Average capacity utilization for the nine months of FY2022 was approximately 85%.
• This high utilization rate indicates robust demand and efficient production management.

Future Outlook

The management of Asian Granito expressed optimism about future growth prospects:

• They expect demand to grow further as pandemic restrictions ease.
• Declining international freight costs are anticipated to provide relief on the export front.

Conclusion

Asian Granito India Limited's performance in Q3 FY2022 demonstrates its ability to capitalize on domestic market opportunities while navigating global supply chain challenges. The company's debt-free status and high capacity utilization position it well for future growth. However, managing input costs will be crucial for maintaining profitability in the coming quarters.