Current/ Expected Orderbook/ Pending Orders?

Current order book for quartz segment stands at Rs. 9 crores (Page 12). The Rs. 9 crores order book includes quartz products with 20mm and 30mm thickness (Page 12). All quartz production is targeted primarily for the international market, and the company has already received approvals and taken orders for export (Page 12). The company is observing demand for new quartz lines before committing to further capacity addition (Page 5). Exports currently contribute around 7% to revenue, indicating some portion of orders are export-oriented (Page 12).

Any current/future new fundraising through debt or equity?

No specific mention of new fundraising through debt or equity in Q4 FY2017 call. The company plans minimal CAPEX this year with focus on internal accruals and LC (Letter of Credit) for machinery purchase. Quartz segment CAPEX of around Rs. 20 crores mostly funded via internal accruals and LC. Future planned CAPEX includes Rs. 35-40 crores for South India JV in 2019, funded through internal accruals. Debt reduction planned via annual repayments of Rs. 17-18 crores gradually reducing long-term borrowings. Management indicates focus on organic and inorganic growth post-GST to minimize CAPEX. No e

Any current/future capex/capital investment/strategic investment?

Current CAPEX of around Rs. 20 crores incurred for quartz segment expansion (brownfield expansion). Quartz capacity recently expanded to 1,600 sq. meters, with plans to add another 1,600 sq. meters through debottlenecking and further brownfield expansion. Planned CAPEX of Rs. 35-40 crores for a JV in South India (Andhra Pradesh) focused on GVT products, expected in 2019. Additional CAPEX of around Rs. 100 crores planned for expansions, including Crystal plant and other ventures. Maintenance CAPEX typically around Rs. 8 to 9 crores annually. Future expansions and CAPEX decisions for quartz segm

Future growth expectations in sales/revenue/volumes?

FY18 revenue growth target: 12-13% Volume growth in FY17 was about 10%; expecting continued growth in volumes with focus on high-value products like GVT, Double Charge, and quartz. Quartz segment expected to contribute additional Rs. 50-60 crores in revenue with ~30% EBITDA margins. Expansion plans include increasing dealer network from 970 to 1,200 by March 2018 and growing showrooms from 144 to 200. Target to increase retail sales to around 50% in coming years. By 2020-21, aiming for a turnover of Rs. 2,000 crores through organic and inorganic growth. Capacity utilization expected to rise: C

Future growth expectations in earnings/operating earnings/profits/EPS?

Target revenue growth for FY18 is 12-13%, building on 7.5% growth in FY17. EBITDA margins are expected to improve and be maintained in the range of 13-15% for FY18, up from around 11.5% in FY17. Growth drivers include increased market share in high-value products like GVT, Double Charge, and new quartz segment with 30% margins. Quartz segment expected to add Rs. 50-60 crores revenue with highest EBITDA margins (30-33%). Expansion plans include increasing dealer network from 970 to 1,200 and showroom count to 200 by March 2018. Benefits from GST implementation expected through industr

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Asian Granito India LtdQ1 FY17Consumer Durables

Asian Granito India Ltd Q1 FY17 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹55.3P/E: 34.8Market Cap: ₹1.8K CrSector: Consumer Durables

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

N/A

Order

N/A

Capex

Yes

1 of 3 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 3

→FY18 revenue growth target: 12-13%
→Volume growth in FY17 was about 10%; expecting continued growth in volumes with focus on high-value products like GVT, Double Charge, and quartz.
→Quartz segment expected to contribute additional Rs. 50-60 crores in revenue with ~30% EBITDA margins.
→Expansion plans include increasing dealer network from 970 to 1,200 by March 2018 and growing showrooms from 144 to 200.
→Target to increase retail sales to around 50% in coming years.
→By 2020-21, aiming for a turnover of Rs. 2,000 crores through organic and inorganic growth.
→Capacity utilization expected to rise: Crystal plant utilization forecasted to move from 65-70% to 80-85%.
→New product lines (e.g., quartz and parking tiles) launched with good market response, indicating potential for volume expansion.
→Industry consolidation post-GST to offer growth and margin improvement opportunities.

Margin guidance

Category 3

→Target revenue growth for FY18 is 12-13%, building on 7.5% growth in FY17.
→EBITDA margins are expected to improve and be maintained in the range of 13-15% for FY18, up from around 11.5% in FY17.
→Growth drivers include increased market share in high-value products like GVT, Double Charge, and new quartz segment with 30% margins.
→Quartz segment expected to add Rs. 50-60 crores revenue with highest EBITDA margins (30-33%).
→Expansion plans include increasing dealer network from 970 to 1,200 and showroom count to 200 by March 2018.
→Benefits from GST implementation expected through industry consolidation and organized sector growth.
→Working capital cycle improvement and retail sales growth to positively impact earnings.
→Longer-term revenue target of Rs. 2,000 crores by 2020-21 with organic and inorganic growth strategies.
→Capacity utilization target increases (e.g., Crystal plant from 65-70% to 80-85%) to support margin and profit expansion.

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Fundraise plans

→No specific mention of new fundraising through debt or equity in Q4 FY2017 call.
→The company plans minimal CAPEX this year with focus on internal accruals and LC (Letter of Credit) for machinery purchase.
→Quartz segment CAPEX of around Rs. 20 crores mostly funded via internal accruals and LC.
→Future planned CAPEX includes Rs. 35-40 crores for South India JV in 2019, funded through internal accruals.
→Debt reduction planned via annual repayments of Rs. 17-18 crores gradually reducing long-term borrowings.
→Management indicates focus on organic and inorganic growth post-GST to minimize CAPEX.
→No explicit discussion about raising funds through fresh equity or debt during the call.

Order book

→Current order book for quartz segment stands at Rs. 9 crores (Page 12).
→The Rs. 9 crores order book includes quartz products with 20mm and 30mm thickness (Page 12).
→All quartz production is targeted primarily for the international market, and the company has already received approvals and taken orders for export (Page 12).
→The company is observing demand for new quartz lines before committing to further capacity addition (Page 5).
→Exports currently contribute around 7% to revenue, indicating some portion of orders are export-oriented (Page 12).

Capex plans

Yes

→Current CAPEX of around Rs. 20 crores incurred for quartz segment expansion (brownfield expansion).
→Quartz capacity recently expanded to 1,600 sq. meters, with plans to add another 1,600 sq. meters through debottlenecking and further brownfield expansion.
→Planned CAPEX of Rs. 35-40 crores for a JV in South India (Andhra Pradesh) focused on GVT products, expected in 2019.
→Additional CAPEX of around Rs. 100 crores planned for expansions, including Crystal plant and other ventures.
→Maintenance CAPEX typically around Rs. 8 to 9 crores annually.
→Future expansions and CAPEX decisions for quartz segment to be based on market response after a 3-month observation post recent line launch.
→Minimal CAPEX for the current year, focusing on optimum utilization and possible JV/outsourcing in Morbi to leverage market consolidation post-GST.

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1Asian Granito India Ltd

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