Global Surfaces Limited — Earnings Release 2025

Nov 13, 2024

Ref: GSL/SEC/2024-25/52 Date: November 13, 2024

To,

BSE Limited , Dept of Corporate Services Phiroze Jeejeebhoy Towers Dalal Street, Fort, Mumbai 400 001 (Maharashtra)

National Stock Exchange of India Limited The Listing Department Exchange Plaza, C-1, Block G, Bandra Kurla Complex, Bandra (East), Mumbai 400 051 (Maharashtra)

Scrip Code: 543829

Symbol: GSLSU

Subject Earnings Release on Unaudited Standalone and Consolidated Financial Results of the Company for the Quarter and half year ended September 30, 2024.

Dear Sir/ Madam,

Please find enclosed herewith the Earnings Release on the Un-Audited Standalone and Consolidated Financial Results for the Quarter and half year ended on September 30, 2024.

The above information will also be hosted on the website of the Company and the same can be accessed at www.globalsurfaces.in

This is for information please.

Thanking You

Yours Faithfully,

For Global Surfaces Limited DHARAM Digitally signed by DHARAM SINGH SINGH RATHORE Date: 2024.11.13 17:08:32 RATHORE +05'30' Dharam Singh Rathore Company Secretary and Compliance Officer ICSI Mem. No.: A57411 Place: Jaipur Encl.: As above

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EARNINGS RELEASE Q2 & H1FY25 13[th ] November, 2024

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Nature's Eternal Impressions, Crafted With Design And Thriving With Excellence!

About Us:

• Global Surfaces Limited (GSL) is a leading company in the mining, production, and export of natural stones and engineered quartz products, catering to the global demand for premium surface materials.

• The company has built a sustainable export business with significant growth, focusing primarily on the USA and expanding into Canada, Australia, and the Middle East.

• The company offers a range of products including granite, marble, soft quartzite, phyllites, soapstone, and engineered quartz (Stratum, Prismatic, Kalmasa, and Aurora). These are used in flooring, wall cladding, kitchen counter tops, and other applications

GSL At a Glance:

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20+ 3 80,000+
state of the art cumulative
years of
manufacturing Sq. mtrs. of
experience
units manufacturing space
16,00,000+ 550+ 5+
Sq. mtrs. p.a. Total Workforce countries of
Combined production (Permanent & presence
capacity Contractual)
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Our Capabilities:

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The facility is dedicated to
processing of natural Unit I
stones and is spread Location:
across Bagru (Jaipur)
20,488
Units III
sq. mtrs
Dubai (UAE)
4,71,164 sq. mtrs.
Manufacturing
Capacity
The facility is dedicated to
manufacture engineered Quartz and
spread across
The facility is dedicated
Unit II
39,657.63 to manufacturing of
Location: Mahindra
engineered quartz and
sq. mtrs
World City SEZ
houses a R&D facility and
(Jaipur)
spread across
6,22,896 sq. mtrs.
Manufacturing Capacity
24,139
sq. mtrs
5,21,644 sq. mtrs.
Manufacturing
Capacity
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Key Products:

~~Engineered Quartz~~

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GQ 9008 GQ 9027 GQ 9021 ALLURE MANHATTAN WONDERLAND

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GQ 9024 GQ 9009 ALEXENDRITA INFINITY

GQ 9032 OSAKA

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GQ 9019 STARLET BLACK

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GQ 9022
TAJ MAHAL
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Natural Stones
GRANITES
BIANCO PLATINUM TITANIUM CRYSTAL
ANGEL WHITE BLACK YELLOW
MARBLES
FANTASY FANTASY RAIN FOREST RAIN FOREST
WHITE BROWN GREEN BROWN
QUARTZITES
CRISTALLO DYNAMIC VERDE EL ROMA
BROWN BLUE RIO BLUE
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Key Clientele:

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And Many More…

Certifications:

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NSF ISO 9001:2008 KOSHER PRODUCT UKCERT GREENGUARD CE
Certification Registered QMS Certification Certification Certification Certification Certification
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Our Orderbook and Revenue Mix:

Product-Wise

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4.8%
Q2FY25
95.2%
Natural Stones Quartz
5.4%
H1FY25
94.6%
Natural Stones Quartz
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Geography-Wise

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2.6%
Q2FY25
97.4%
Export Domestic
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5.6%
H1FY25
94.4%
Export Domestic
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Order Book As on 30[th] September, 2024 ~ ₹ 1,090.7 Mn

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0.5%
99.5%
Natural Stones Quartz
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Key Financial Metrics:

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Revenue from Operations EBITDA and EBITDA Margin PAT and PAT Margin
33.6
700.0 80.0 74.5 20.0% 40.0 10.0%
68.1 8.4%
600.0 571.5 70.0 16.9% 20.0
5.0%
60.0 15.0%
469.7
500.0
50.0 13.0% -
402.3
0.0%
400.0 40.0 10.0% Q2 FY24 Q1 FY25 Q2 FY25
-20.0
-2.2%
30.0
300.0 -5.0%
17.2 -12.6
20.0 5.0% -40.0
200.0 3.7%
10.0
-10.0%
-60.0
100.0 - 0.0% -13.2%
-62.0
Q2 FY24 Q1 FY25 Q2 FY25 -80.0 -15.0%
-
Q2 FY24 Q1 FY25 Q2 FY25 EBITDA EBITDA Margins PAT PAT Margins
Revenue from Operations EBITDA and EBITDA Margin PAT and PAT Margin
140.0 20.0% 80.0 8.0%
1,200.0 1,041.1 120.0 120.5 60.0 55.4 7.2% 6.0%
15.7%
1,000.0 91.7 15.0% 40.0
100.0 4.0%
766.1 20.0
800.0 80.0 2.0%
10.0% -
60.0 8.8% 0.0%
600.0 (20.0) H1 FY24 H1 FY25
40.0 -2.0%
5.0% (40.0)
400.0
20.0 (60.0) -4.0%
200.0 - 0.0% (80.0) -7.2% -6.0%
H1 FY24 H1 FY25 (100.0) (74.6) -8.0%
-
H1 FY24 H1 FY25 EBITDA EBITDA Margins PAT PAT Margins
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*EBITDA is calculated excluding Other Income

Consolidated Profit & Loss Statement:

Particulars (Rs. Mn)	Q2 FY25	Q2 FY24	YoY (%)	Q1 FY25	H1 FY25	H1 FY24	YoY (%)
Revenue from operations	469.7	402.3	16.7%	571.5	1,041.1	766.1	35.9%
Other income	10.4	20.1		6.9	17.4	30.5
Total revenue	480.1	422.4		578.4	1,058.5	796.5
Total expenses excluding depreciation, amortization, and finance cost	452.4	334.3		497.0	949.4	645.6
EBITDA (Excl OI)	17.2	68.1		74.5	91.7	120.5
EBITDA Margin %	3.7%	16.9%		13.0%	8.8%	15.7%
Depreciation & Amortization	46.4	17.9		45.4	91.8	34.9
Finance Cost	31.2	14.3		33.5	64.6	23.4
PBT	(49.9)	55.9		2.5	(47.3)	92.7
Tax Expense	12.1	22.3		15.2	27.3	37.3
PAT	(62.0)	33.6		(12.6)	(74.6)	55.4
PAT Margin %	(13.2%)	8.4%		(2.2%)	(7.2%)	7.2%
Diluted EPS	(1.51)	0.64		(0.29)	(1.80)	1.16

Consolidated Balance Sheet Statement:

Particulars(Rs. Mn)	As at 30.09.24	As at 31.03.24
Assets
Non-Current Assets
Property,Plant & Equipment	2,385.9	2,443.3
Capital work-in-progress	1.1	1.2
Intangible Assets	2.5	2.6
Right of Use Assets	486.0	496.4
Loans	0.3	0.3
Other financial assets	26.6	26.8
Income Tax Assets Net	38.5	28.9
Other non-current assets	2.0	3.3
Deferred tax assets(Net)	210.0	213.7
Total Non-Current Assets	3,153.0	3,216.4
Current Assets
Inventories	954.3	767.6
Investments	1.6	1.5
Trade receivables	1,116.0	1,098.6
Cash & cash equivalents	32.1	25.9
Bank Balances	16.8	28.5
Loans	6.9	1.2
Other financial assets	23.5	18.1
Other current assets	80.3	60.3
Total Current Assets	2,231.4	2,001.6
Total Assets	5,384.3	5,217.9

Particulars(Rs. Mn)	As at 30.09.24	As at 31.03.24
Equity & Liabilities
Shareholder's Funds
Equityshare capital	423.8	423.8
Other equity	2,805.6	2,881.3
Non-ControllingInterest	21.5	19.7
Total Shareholder's Funds	3,250.9	3,324.8
Non-Current Liabilities
Long-Term Borrowings	569.3	524.6
Lease Liabilities	449.8	463.0
Provisions	4.1	3.7
Total Non-Current Liabilities	1,023.1	991.2
Current Liabilities
Short-term Borrowings	514.0	458.8
Tradepayables	517.4	386.6
Other financial liabilities	53.6	37.5
Current tax liabilities	6.8	6.5
Other current liabilities	10.3	11.8
Provisions	8.3	0.8
Total Current Liabilities	1,110.3	902.0
Total Equity & Liabilities	5,384.3	5,217.9

Management Commentary:

In Q2FY25, revenue stood at Rs. 469.7 Mn showing a robust growth of 16.7% as compared to Rs. 402.3 Mn in Q2FY24. Also, revenue for H1 FY25 reached Rs. 1,041.1 Mn which grew by 35.9% over H1 FY24

Our EBITDA stood at Rs. 17.2 Mn in Q2 FY25 as compared to Rs. 68.1 Mn in Q2FY24 while margins stood at 3.7% for Q2 FY25. While EBITDA for H1 FY25 stood at Rs. 91.7 Mn and EBITDA margin stood at 8.8%. The contraction in EBITDA is primarily due to a significant increase in raw material costs that could not be transferred to customers, coupled with higher freight expenses resulting from the ongoing container shortage. Additionally, customers have delayed dispatches and placed orders on hold amid uncertainty surrounding the U.S. elections. However, management is now optimistic that these orders will be converted and integrated into the system.

Our net loss for Q2 FY25 amounted to Rs. 62.0 Mn , reflecting a loss margin of 13.2% whereas for H1 FY25 net loss stood at Rs. 74.6 Mn while loss margin stood at 7.2%. This was mainly driven by increased depreciation and finance costs.

At Global Surface FZE’s UAE plant, we have commenced production trials of the licensed technology by SQIP. This advanced technology enables us to produce high-quality engineered quartz surfaces that emulate the look and feel of natural marble looks, featuring more authentic colors and patterns that are in demand across key markets. As we progress toward fullscale commercialization, we anticipate that these products will provide a strong competitive edge through their unique value propositions. The integration of licensed patented technology will not only enhance our product portfolio but is also expected to significantly increase profit margins. Ultimately, this technology investment aims to strengthen our financial performance through the production of value-added, high-margin products.

As a prominent company in the natural and engineered stone industry, we are strategically focused on expanding our presence in the Middle East by bidding for independent projects, which will drive higher profitability. This decision is driven by the increasing demand for high-quality stone materials, especially in construction and real estate, which is booming across the Middle East. The region’s rapid urbanization, coupled with large-scale infrastructure and architectural projects, presents a unique opportunity for us to tap into a growing market.

During the quarter, we experienced subdued demand in the U.S. market due to the U.S. elections. Looking ahead, we are strategically shifting our focus to expand beyond exports and tap into the growing domestic market. With significant growth potential, our goal is to capture 10-15% of the domestic market share over the next few years, leveraging our strengths in product innovation and quality. This expansion will diversify our revenue streams, enhance our market presence, and strengthen our competitive position, enabling us to reach new customer bases and foster long-term growth.

This quarter, we launched our new product series “Quartzites” , strengthening our leadership in engineered surfaces market with 22 premium products. Crafted from high quality Cristobalite , the collection offers exceptional durability, low maintenance, and a sleek white finish, ideal for both residential and commercial spaces. The series broadens our product portfolio, catering to diverse design preferences while positioning us for global market expansion. It enhances our appeal to designers and builders, fostering stronger client relationships. This launch is poised to drive growth and increase our market share.

As we move forward, our main focus remain on driving operational excellence, expanding our market share and delivering value to our stakeholders. We are confident that our proactive approach will continue to strengthen our competitive edge and support sustainable growth in the coming quarters.

For further information on the Company, please visit: https://globalsurfaces.in/

Contact Details:

Mayank Shah

Global Surfaces Limited Contact: +91 0141-7191000 Email: info@globalsurfaces.in

Krunal Shah / Vinayak Shirodkar Captive IR Strategic Advisors Pvt. Ltd. Contact: +919372467194

Email: krunal@cap-ir.com/vinayak@cap-ir.com

Disclaimer:

Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like government actions, local political or economic developments, technological risks, and many other factors that could cause our actual results to differ materially from those contemplated by the relevant forward-looking statements. Global surfaces limited will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward looking statements to reflect subsequent events or circumstances.

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