Aro Granite Industries Ltd.

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Regd. Office : 1001, 10th Floor, DLF Tower A, Jasola, New Delhi - 110 025. Phone : 91-11- 4 l 686 l 69, Fax : 9 l -l l-2694 l 984, E-mail : [email protected]

June 29, 2021 Bombay Stock Exchange Limited National Stock Exchange of India Limited Department of Corporate Services Listing Department Floor 25, P.J. Towers 5th Floor, Exchange Plaza Dalal Street Sandra (E) Mumbai 400001 Mumbai 400051 (SCRIP CODE: 513729) (SCRIP CODE: AROGRANITE/EQ)

Sub.: Investor Presentation of the Company

Dear Sir,

Please find enclosed herewith a copy of Investor Presentation of the Company for your information and record please.

Thanking You

Yours faithfully For Aro granite industries ltd.

Comp}!�

Encl.: a/a

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CORP. OFF. & WORKS

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KONERIPALLI VILLAGE, SHOOLAGIRI (VIAi, HOSUR TALUK - 635 I I 7, KRISHNAGIRI DIST. TAMIL NADU, INDIA. TEL: 91 - 4344 - 252100 FAX: 91 - 4344 - 252217 E-mail: [email protected] Web: www.arotile.com CIN : L74899DLI 988PLC03 I 5 IO

Investor Update – For the Quarter Ending 31[st] March 2021 June 2021

Investor Update – For the Quarter Ending 31[st] March 2021

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Disclaimer

Certain statements in this communication may be considered as ‘forward looking statements’ within the meaning of applicable law and regulations. These forward-looking statements involves a number of risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward looking statements, important development that could affect the company’s operations include changes in the industry structure, significant changes in politics and economic environment in India and overseas, tax laws, import duties, litigation and labour relations.

Aro granite industries limited does not undertake to revise any forward-looking statement that may be made from time to time by or on behalf of the company.

Aro granite industries limited will not be in any way responsible for any action taken based on such statement and undertakes no obligation to publicly update these forward looking statement to reflect subsequent event or circumstances.

Com an Sna shot p y p

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SEZ

Started commercial Largest processed Granite 100% export oriented, Special Economic Zone Unit operation in 1991 exporter out of India located at Hosur, Located in Mahindra World Tamil Nadu City, Jaipur Installed capacity Supply of over 100 Export to more Granite Slab: Listed on NSE Since shades of Granite from than 42 countries 735,000 Square Meters 2007 & BSE Since India and other countries Granite Tiles: 1997 in India 360,000 Square Meters Quartz slabs: 180,000 Square Meters 3

Indian Granite Industr y

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Export to China
Rs. 3,093 Cr
India exported Rs. 10,200 Cr
Rs. 10,200 Cr
worth of granite in FY2019 of
which Rs.3,093 Cr was exported
Total exports to China
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China is largest market for Indian
raw granite block, 30.32 % of the
total granite were exported to
China
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Large players finished products are

Statewise Granite Reserves

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Madhya Others
Pradesh
Karnataka
Andhra 4 [%] 13 [%] 20 [%]
Pradesh 5 [%]
20 [%]
18 [%]
Rajasthan
Gujarat 19 [%]
Jharkhand
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Source – Indian Mineral Yearbook 2019

Hosur Infrastructure

Slab Plant	Slab Plant	Tile Plant 53 Blade cutting Centre 4 Topping Centre 1 Calibration Line 1 Epoxy line 1 20 Head Polishing line 1 Cross cutting machine 4 Cleft/Split Machine 1
Jumbomatic Gang saws	12
72 Wire Multi Wire Saw	1
20 Head Polishing Line	3
12 head Grinding line	1
Flaming machine	1
Epoxy lines	3

Cut to Size	Cut to Size	Quartz – 180,000 m2/year	Quartz – 180,000 m2/year
CNC Machine	2	Automatic Molding line	1
Edge Polishing	1	Calibration line	2

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HOSUR – Gan saws & Multi Wire Cutter g

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12 x Super Jumbo Gangsaws (4.5m)
1 x Multi Wire (72 Wire)
Suited for Cutting Most Granites
Suited for Fragile Granites, Quartizites, and Special Colours

HOSUR – Tiles

4 nos. Multi Blade Block Cutting Centers
Calibrated and Chemfered tiles
Over 25 years of experience in tile

In 10mm, 13mm, 15mm, 20mm and 30mm	In 13mm, 15mm and 20mm	Special Sizes
305 x 305 mm		400 x 800 mm
305 x 610 mm	600 x 600 mm	600 x 900 mm
400 x 400 mm	610 x 610 mm	600 x 1200 mm
400 x 600 mm		300 x 900 mm
457 x 457 mm

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HOSUR – Quartz

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HOSUR -Warehouse / Showroom

120,000 Square Feet of Display Space

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Jai ur Plant p

We exported our first container (August 1, 2019) from Jaipur about 10 months after we started the construction of the SEZ Unit
Installed capacity of plant is 1,50,000 sq. mtr per annum

Slab Plant	Slab Plant
72 Wire Multi Wire Saw	1
20 Head Polishing Line	1
12 head Grinding line	1
Epoxy lines	2
CNC Machine	1

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Financial Performance (Quarterly)

Particulars In Rs. Cr	Q3 FY20	Q4 FY20	Q1 FY21	Q2 FY21	Q3 FY21	Q4 FY21
Sales	42.53	43.60	28.31	46.74	48.30	56.02
Operating Exp	38.63	40.16	23.92	39.97	43.92	47.77
EBITDA	4.46	4.44	4.52	6.90	4.51	8.49
PAT	0.66	0.47	0.34	1.89	1.05	2.77
EBITDA Margins (in %)	10.48%	10.18%	15.96%	14.77%	9.35%	15.16%
Net Profit/Loss Margins (in %)	1.55%	1.07%	1.20%	4.04%	2.17%	4.95%

Financial Overview (Quarterly)

Revenues from operations Figures in INR Cr.

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80.00
60.00 56.02
46.74 48.30
42.53 43.60
40.00 28.31
20.00
0.00
Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21
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EBITDA

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Figures in INR Cr.
15.00
12.00
8.49
9.00
6.90
6.00 4.46 4.44 4.52 4.52
3.00
0.00
Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21
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Profit After Tax

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Figures in INR Cr.
5.00
4.00
2.77
3.00
1.89
2.00
1.05
1.00 0.66 0.47 0.34
0.00
Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21
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Debt to Equity Ratio

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2.00
1.50
1.00 0.87 0.83 0.78 0.88 0.86 0.86
0.50
0.00
Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21
12
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Financial Overview (Quarterly)

Sales Volume (Square Meters)

Figures in Lakh Sqm.

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4.00
3.00
1.89
2.00 1.44
1.29
1.28 1.10 0.74
1.00
0.00
Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21
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Raw Material Consumption (Cubic Meters)

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Figures in ‘000
10.00
8.00
6.00 4.80 4.80
4.07
4.00 3.03 3.20
1.90
2.00
0.00
Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21
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Does not include raw material consumption in Quartz segment

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Segment Sales - Slabs Figures in INR Cr.
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Segment Sales - Tiles

Figures in INR Cr.

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60.00
46.60
45.00 36.69 38.03 38.99
35.55
30.00 22.77
15.00
0.00
Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21
Include sales of Rs. 2.3 Cr in Q4FY2021 in Quartz segment
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10.00 8.70 9.31 9.43
7.50 6.98 6.91
5.54
5.00
2.50
0.00
Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21
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Financial Highlights (Quarterly)

Sales Increased by 28.49% From 43.60 Cr in Q4 FY2019-20 to 56.02 Cr in Q4 FY2020-21
EBITDA Increased By 90.95% From 4.45 Cr in Q4 FY2019-20 to 8.49 Cr in Q4 FY2020-21
PAT Increased By 496.11% From 0.47 Cr in Q4 FY2019-20 to 2.77 Cr in Q4 FY2020-21
EBITDA Margins Increased From 10.20% in Q4 FY2019-20 to 15.16% in Q4 FY2020-21

Operational Highlights (Quarterly)

Due to Covid-19 induced lockdown our sales were impacted in H1FY2021 but our sales have picked up from Q3FY2021 and we performed better than last year
On the Raw material front we faced challenges in our Hosur facility but now raw material procurement has reached pre-covid levels
Our Jaipur plant is running successfully and contributed more than 18% of our total sales in FY2021
Due to travel restrictions Veego (our machine supplier for quartz plant) helped us through CCTV and Video Conferencing support and we were able to commission the quartz plant with Commercial Production Starting in January 2021
We did Rs 2.3 Cr of sales from our Quartz plant in Q4 2021
The sales of Quartz has been slow initially as our clients cant travel to visit our plants. Whatever offtake that has happened, is largely based on trust our clients have on us even though it’s a new product line

Countr wise Ex orts FY2021 y p

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15 [%]
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New Plant (Jaipur)

Our initiative to start plant in Jaipur has been quite successful - It accounted for 18% of our sales in FY2021
Our sales from Jaipur plant has picked up from monthly sales of Rs. 2 Cr sales to more than Rs. 3 Cr monthly sales
Our portfolio of colors and volume has increased significantly due to wide variety of colors and shades from north India which have high demand in many countries specially in North America
We expect demand for these new colors from North India will increase from other countries also, we shall utilize fully capacity of plant in FY22
Availability of raw granite blocks at stable prices has been a big advantage and has helped us maintain our market share in the export markets
Our business from Rajasthan is growing and we have portfolio of 26 colors with 6-7 shades being core colors, we remain confident on the contribution from the plant

New Processing Facility (Quartz)

Company has set up processing facility for Quartz in its existing plant in Hosur with capacity of 180,000 m2 per Annum in the first phase
Our Quartz plant was expected to commission in January 2020 but was delayed due to Covid-19
We have started production from the plant from January 2021 we are increasing our production slowly and generated revenue of Rs. 2.3 Cr in Q4FY2021
We have successfully completed trial run in February 2021 and product was successfully accepted by our customers,
Our fixed investment in Quartz plant is low, as we are using / sharing existing infrastructure of Hosur Unit with the quartz plant. We expect good ROIs from this plant in the years ahead

Outlook

FY2021 has been a challenging year for the company as we lost sales for 43 days due to lockdown. Overall we were able to salvage the situation in the 2nd Half and closed the year on a satisfactory note.
In May 2021 the Second Wave of Covid-19 hit the country and that also caused state specific lockdowns across India. Since then the situation has improved as our plants are fully operational and raw material availability is also improving
Granite industry has made representation to the new government for re-opening of granite quarries, we expect positive policy changes will increase the availability of raw material
Our Jaipur plant has been successful and has started to contribute significantly to sales and profits of the company. We are optimistic our returns on this investment will be quite good
We have started sales from Quartz plant and due to its high demand across the world we expect our Quartz segment will contribute to our growth in coming years
The GST refund mechanism has smoothened out and that has improved our working capital requirement

For any further information, please contact

Sabyasachi Panigrahi Aro granite industries ltd. [email protected] +91 11 41686169

Gaurav Sud Kanav Capital Advisors Pvt. Ltd. [email protected] +91 98101 22432

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Registered Office: #1001, I0th Floor, DLF Tower A, Jasola , New Delhi - 110 025. (INDIA) Corporate Office & Works: Koneripalli Village, Shoolagiri (Via), Hosur ( TK) - 635 117, Tamilnadu, INDIA.

The Aro granite industries limited’s Logo is the trademark of Aro granite industries limited. In addition to company data, data from market research agencies, stock exchanges and industry publications has been used for this presentation. This material was used during an oral presentation; it is not a complete record of the discussion. This work may not be used, sold transferred, adapted, abridged, copied or reproduced in whole or in part in manner or form or in any media without the prior written consent. All product names and logos mentioned herein are the trademarks or registered trademarks of their respective owners.

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Aro Granite Industries Ltd. Investor Presentation 2021

60674_rns_2021-06-29_833e2405-7b53-4425-80f5-9a879e2cdf1a.pdf