Aro Granite Industries Limited

Sunil Kumar Arora

MANAGING DIRECTOR, ARO GRANITE INDUSTRIES LIMITED

Sahil Arora

WHOLETIME DIRECTOR, ARO GRANITE INDUSTRIES LIMITED

M. Madangopal

CFO, ARO GRANITE INDUSTRIES LIMITED

Sabyasachi Panigrahi

LEGAL HEAD AND COMPANY SECRETARY, ARO GRANITE INDUSTRIES LIMITED

Gaurav Sud

KANAV CAPITAL

26%

concall. Thank you for taking out your time for attending this call. Our sales for the year grew 26% to Rs. 226 crores, thanks to a great Q1 and Q2 numbers with profit after tax increasing by 47% to

Rs. 226 crore

l. Thank you for taking out your time for attending this call. Our sales for the year grew 26% to Rs. 226 crores, thanks to a great Q1 and Q2 numbers with profit after tax increasing by 47% to Rs. 8.90 crores.

47%

ew 26% to Rs. 226 crores, thanks to a great Q1 and Q2 numbers with profit after tax increasing by 47% to Rs. 8.90 crores. The growth in sales and profitability was due to a very strong first half of

Rs. 8.90 crore

to Rs. 226 crores, thanks to a great Q1 and Q2 numbers with profit after tax increasing by 47% to Rs. 8.90 crores. The growth in sales and profitability was due to a very strong first half of the year. The ship

19%

us achieve breakeven levels in the first full year of operations. Quartz for the year represented 19% of our total sales. Our Jaipur plant continues to shine with Jaipur contributing to 19% of our sa

46%

colors were closed and many struggled with labor shortages. Our slab plant in Hosur accounted for 46% of our sales and our tile plant accounted for 16% of our total sales. During the end of Q2, the w

16%

hortages. Our slab plant in Hosur accounted for 46% of our sales and our tile plant accounted for 16% of our total sales. During the end of Q2, the world was plunged into a massive supply chain crunc

3x

rious locations. It was very difficult to get containers which cost container prices skyrocket to 3x tox of the regular price in August. This sudden price increase led to customers delaying containe

50%

es would have stocked them for 9 months as inventory. The shipping cost to USA has led to a 40 to 50% increase in the landed price which shipping cost going for as much as 10 to 15% of the landed cos

15%

as led to a 40 to 50% increase in the landed price which shipping cost going for as much as 10 to 15% of the landed cost in previous years, now being anywhere between 30 to 50%. Eastern Europe is a k

rs,

landed price which shipping cost going for as much as 10 to 15% of the landed cost in previous years, now being anywhere between 30 to 50%. Eastern Europe is a key market for us. The current Ukraine-R

4x

to $2000 the container has gone to now $8000 to $15,000 a container. So, that is anywhere between 4x to 15x, 10x the price of the container and like we were mentioning from 12% of the landed cost, i

“We will be starting the call with a brief overview of the company’s performance and then follow with a Q&A session.”

“In the long term or in the medium term, building material is still in high demand especially in US and Europe, building material is still quite sort after.”

“That is the segment we will be focusing on.”

“We have two segments in the domestic sales that is the high end or the export rejection, so we will be continuing to focus on the high-end sales for the domestic market.”

“So, in the past, our focus was on the basic, but in the coming months, it will be stretching to the more complex.”

“Sahil, for the Quartz division, is there any plan to cater to a domestic market as well from there?”

Sahil Arora

22

Siddharth Agarwal

16

Lalith

8

Moderator

6

Madangopal

3

Gaurav Sud

2

Gaurav Sud

Thanks, Rutuja. Welcome everyone and thanks for joining this Q4 FY22 earnings call for ARO Granite Industries. The results and investor updates have been mailed to you and it is also available on the stock exchange. In case, anyone does not have a copy of the press release, please do write to us, we will be happy to send it over to you. To take us through the results of this quarter and answer your questions, we have today with us, Mr. Sunil Kumar Arora - Managing Director; Mr. Sahil Arora - Whole Time Director; Mr. Madangopal – CFO and Mr. Sabyasachi Panigrahi - Legal Head and Company Secretary. We will be starting the call with a brief overview of the company’s performance and then follow with a Q&A session. I would like to remind you all that everything said on this call that reflects any outlook for the future, which can be construed as a forward-looking statement must be viewed in conjunction with uncertainties and risks that we face. These uncertainties and risks are included but

Sahil Arora

Thank you, Gaurav. The management of ARO Granite Industries Limited would like to welcome you to the year ending concall. Thank you for taking out your time for attending this call. Our sales for the year grew 26% to Rs. 226 crores, thanks to a great Q1 and Q2 numbers with profit after tax increasing by 47% to Rs. 8.90 crores. The growth in sales and profitability was due to a very strong first half of the year. The shipping challenges of Q3 and Q4 however prevented our sales increasing even further. During the year, our Quartz plant reached good acceptance in the North American markets for our basic volume colors and order flows was smooth. Despite the challenges of not having the Chinese suppliers technicians onsite we have been able to reduce rejection of contamination to low levels. This helped us achieve breakeven levels in the first full year of operations. Quartz for the year represented 19% of our total sales. Our Jaipur plant continues to shine with Jaipur contributing to 19%