Aro Granite Industries Limited — PPTs, 26-11-2024: Investor Presentation

### Financial Highlights

For Q2 FY25, Aro Granite Industries reported revenues of ₹28.61 crores, representing a 23.82% decline quarter-on-quarter and a 23.55% drop year-on-year. The EBITDA was negative at ₹2.02 crores, with an EBITDA margin shrinking to -7.06%. Profit after tax also suffered significantly, recording a loss of ₹7.20 crores.

### Strategic Initiatives and Growth Drivers

The company is ramping up its quartz production capacity and plans to leverage market recovery anticipated in Q4, post US elections and stabilization of freight rates. There is a commitment to return to profitability by increasing production efficiencies and addressing supply chain challenges.

### Business Developments

Recent operational highlights include a continued expansion in capacity utilization, especially in quartz, though the granite sector has faced setbacks due to higher freight costs and soft demand. Additionally, the Jaipur facility's capacity has been noted as a significant future growth area.

### Market Position and Competitive Advantage

Aro Granite holds a strong competitive advantage with its established brand in natural stone processing, particularly with a diversified product mix. The shift to a stock-and-sell model has positioned the company to manage raw material variability.

### Investor Implications

The current financial pressures stem from macroeconomic headwinds, but signs of recovery in the latter half of FY25 may offer opportunities for upside. Investors should watch closely for improvements in freight rates and demand trends, which could enhance margins and overall profitability.