Aro Granite Industries Reports Q1 Loss of Rs 642.28 Crore Amid Revenue Decline
Aro Granite Industries Limited reported a substantial loss in Q1 FY2025-26. Revenue from operations decreased by 28% to Rs 27.04 crore, while the company posted a net loss of Rs 642.28 crore compared to a profit of Rs 0.75 crore in the same quarter last year. The Granite Slabs/Tiles Division contributed Rs 18.73 crore to revenue, while the Quartz Division generated Rs 8.75 crore. Despite reducing total expenses, the company's EPS turned negative at Rs 4.07. The results reflect challenging market conditions in the granite and quartz industry.
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Aro Granite Industries Limited , a leading manufacturer of granite tiles and slabs, has reported a significant loss in its first quarter results. The company's financial performance shows a stark contrast to the same period last year, reflecting challenging market conditions in the granite and quartz industry.
Financial Highlights
| Particulars (in Rs. Crore) | Q1 FY2025-26 | Q1 FY2024-25 | YoY Change |
|---|---|---|---|
| Revenue from Operations | 27.04 | 37.55 | -28.00% |
| Total Income | 27.47 | 38.74 | -29.09% |
| Total Expenses | 27.37 | 38.59 | -29.07% |
| Net Profit/(Loss) | (642.28) | 0.75 | N/A |
| EPS (in Rs.) | (4.07) | 0.54 | N/A |
Revenue Decline
Aro Granite Industries witnessed a significant decline in its revenue from operations, which fell to Rs 27.04 crore from Rs 37.55 crore in the corresponding quarter of the previous year, marking a 28.00% decrease. The total income for the quarter stood at Rs 27.47 crore, down from Rs 38.74 crore year-over-year.
Segment Performance
The company operates in two business segments:
- Granite Slabs/Tiles Division: This segment contributed Rs 18.73 crore to the revenue.
- Quartz Division: The quartz engineered slabs segment generated Rs 8.75 crore in revenue.
Profitability
The most notable aspect of the results is the substantial net loss of Rs 642.28 crore reported for the quarter, compared to a profit of Rs 0.75 crore in the same quarter last year. This significant downturn has resulted in a negative earnings per share (EPS) of Rs 4.07 for the quarter.
Expenses and Operational Efficiency
Despite the revenue decline, Aro Granite Industries managed to reduce its total expenses to Rs 27.37 crore from Rs 38.59 crore in the corresponding quarter. However, this reduction in expenses was not sufficient to offset the sharp decline in revenue.
Management Commentary
The company's Board of Directors, led by Managing Director Sunil Kumar Arora, approved these audited financial results. The management has not provided specific comments on the factors contributing to the loss or strategies to improve performance in the coming quarters.
Auditor's Report
The financial results have been audited by Alok Mittal & Associates, Chartered Accountants, who have issued an unqualified opinion on the standalone financial results.
Looking Ahead
As Aro Granite Industries faces challenges in both its granite and quartz divisions, investors and stakeholders will be keenly watching for any strategic initiatives or market developments that could help the company return to profitability in the coming quarters.
The granite and quartz industry's dynamics, including global demand for construction materials and competition in the export markets, will likely play a crucial role in the company's performance moving forward.
Historical Stock Returns for Aro Granite Industries
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.08% | -2.46% | -11.70% | -15.27% | -34.50% | -14.28% |
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