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.

Asian Granito India Limited (AGL) has reported a strong financial performance for the first quarter of the fiscal year, marking a significant turnaround with improved profitability and revenue growth.

Financial Highlights

• Revenue Growth: AGL's revenue increased to ₹3.88 billion in Q1, up from ₹3.60 billion in the same period last year, representing a growth of 7.78%.
• EBITDA Surge: The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) rose sharply to ₹249.00 million, a substantial 55.04% increase from ₹160.60 million in the corresponding quarter of the previous year.
• Improved EBITDA Margin: The EBITDA margin expanded to 6.40%, up from 4.68% in Q1 of the previous fiscal year.
• Return to Profitability: Asian Granito reported a consolidated net profit of ₹75.00 million, reversing the loss of ₹18.00 million incurred in the same quarter last year.

Performance Analysis

The company's robust performance in Q1 reflects a strong recovery and improved operational efficiency. The significant jump in EBITDA and the expansion of the EBITDA margin indicate better cost management and higher operational leverage.

Asian Granito's return to profitability is particularly noteworthy, signaling a successful turnaround from the losses reported in the previous year. This improvement in bottom-line performance, coupled with revenue growth, suggests that the company's strategic initiatives are yielding positive results.

Looking Ahead

The strong start to the fiscal year positions Asian Granito well for continued growth. Investors and stakeholders will likely be watching closely to see if the company can maintain this momentum in the coming quarters.

Note: This article is based on the financial results for the first quarter as reported by Asian Granito India Limited.