Global Surfaces Limited — Earnings Release 2025

Aug 14, 2024

Ref: GSL/SEC/2024-25/32 Date: August 14, 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 ended June 30, 2024.

Dear Sir/ Madam,

Please find enclosed herewith the Earnings Release on the Un-Audited Standalone and Consolidated Financial Results for the Quarter ended on June 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 and records please.

Thanking You

Yours Faithfully,

For Global Surfaces Limited

DHARAM Digitally signed by DHARAM SINGH SINGH RATHORE Date: 2024.08.14 RATHORE 14:33:26 +05'30' Dharam Singh Rathore Company Secretary and Compliance Officer ICSI Mem. No.: A57411

Place: Jaipur

Encl.: As above

EARNINGS RELEASE

Q1 FY25 14 AUGUST, 2024

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

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CIN: L14100RJ1991PLC073860

Registered Office: Plot No. PA-010-006, Engineering & Related Industries, SEZ Mahindra World City (Jaipur) Ltd, Tehsil Sanganer, Jaipur (Raj)

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.

• Company operates three advanced manufacturing units to support its diverse product offerings.

• Unit I: This facility covers approximately 20,488 square meters and is primarily dedicated to the processing of natural stones.

• Unit II: This unit encompasses around 24,139 square meters and is specifically dedicated to the manufacturing of engineered quartz.

• Units III: This unit covers approximately 39,658 square meters and is exclusively dedicated to the production of engineered quartz.

Our Capabilities:

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Our Reach:

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Canada
USA
. UAE [.] India
Middle
East
Australia
. Manufacturing Facility
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Some of Our Product Offerings:

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Calacatta
Gold
Alexendrita
Antico
Cloud
Titanium
Black
White
Sparkle
Rain Forest
Green
And Many More…
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Our Strengths:

Broad range allows to meet evolving customer demands and effectively compete with industry giants by consistently introducing high-quality, trend-driven products.

Experienced management team balances industry veterans with young professionals, ensuring efficient operations across production, finance, sales, and HR.

In-house R&D facility focuses on creating highquality, cost-efficient engineered quartz, with a dedicated team developing new products and designs to meet diverse customer needs and stay aligned with market trends.

Wide Established product presence portfolio in and international multiple markets designs

Synergy of young and Effective experienced quality checks management team with a thereby committed reducing employee loss base

R&D set strategically up for located new manufacturing product facility development

Top-notch quality products has fuelled the growth of sustainable export business, with the USA as primary market, and has enabled to successfully serve customers in Canada, Australia, and the Middle East.

Rigorous quality control processes for both raw materials and final products, supported by dedicated personnel overseeing equipment and material strength, ensure consistent premium quality and bolster brand value through multilevel checks.

Manufacturing facility is located strategically which enhances operational efficiency and reduces logistics costs, ensuring timely delivery and better market responsiveness.

Technology integration and plant automation

Continuous investments in cutting-edge technology and SAP systems to enhance production quality, operational efficiency, and cost-effectiveness. These upgrades improve output, customer service, and business processes while driving cost efficiencies and integrating functions.

Consolidated Financial Performance:

Revenue from Operations

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1,200.0 1,086.2
1,000.0
800.0
571.5
600.0
363.7
400.0
200.0
-
Q1 FY24 Q4 FY24 Q1 FY25
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EBITDA & EBITDA Margin

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200.0 15.5%
162.0
15.0%
14.9%
150.0
14.5%
14.4%
14.0%
100.0
74.5
13.5%
52.4
13.0%
50.0 13.0%
12.5%
- 12.0%
Q1 FY24 Q4 FY24 Q1 FY25
EBITDA EBITDA margins
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Consolidated Profit & Loss Statement:

Particulars(Rs. Mn)	Q1 FY25	Q1 FY24	YoY(%)	Q4 FY24
Revenue from operations	571.5	363.7	57.1%	1,086.2
Other income	6.9	10.4		-1.2
Total revenue	578.4	374.2		1,085.0
Total expenses excluding depreciation, amortization, and finance cost	497.0	311.3		924.2
EBITDA (Excl OI)	74.5	52.4	42.1%	162.0
EBITDA Margin %	13.0%	14.4%		14.9%
Depreciation & Amortization	45.4	17.0		35.7
Finance Cost	33.5	9.1		10.2
PBT	2.5	36.8		114.9
Tax Expense	15.2	15.0		6.6
PAT	(12.6)	21.8		108.3
PAT Margin %	-2.2%	6.0%		10.0%
Diluted EPS	(0.29)	2.48		0.51

Management Commentary

Commenting on the performance the management team of Global Surfaces Limited, stated:

“ In Q1 FY25, Global Surfaces Limited (GSL) has demonstrated a resilient performance amid evolving market dynamics. Our strategic initiatives, combined with robust operational efficiencies, have enabled us to navigate the complexities of the global market effectively. This period has been marked by both opportunities and challenges, and we are pleased to report a steady growth trajectory in our core areas of business.

For Q1 FY25, GSL reported revenue of Rs. 571.5 Mn , reflecting a growth of 57.1% compared to Rs. 363.7 Mn in Q1 FY24. This growth was achieved despite trade disruptions due to container shortages, particularly in the UAE and Indian markets, which led to shipment delays and higher freight costs. We are actively working to overcome these challenges to minimize their impact on our operations.

EBITDA for the quarter stood at Rs. 74.5 Mn , with an EBITDA margin of 13.0%. The margin compression is primarily attributed to increased logistics expenses, operationalization costs related to the commencement of our new UAE plant, along with higher employee costs due to the hiring of additional production staff for the UAE facility

Our net loss for Q1 FY25 amounted to Rs. 12.6 Mn , reflecting a loss margin of 2.2% . This was primarily driven by higher depreciation and finance costs associated with the commercialization of our UAE plant.

We expect robust demand for our products moving forward, driven by several positive market trends. As interest rates approach their peak, we anticipate a resurgence in real estate activities, which is likely to boost demand for our offerings. Additionally, the strengthening of market conditions is expected to enhance export opportunities, further contributing to our growth. These factors combined position us well to capitalize on emerging opportunities and support our continued expansion in both domestic and international markets.

We are also happy to highlight that at GSL we always like to remain ahead of curve and the recently secured License Agreement with SQIP, LLC which grants us exclusive rights to cuttingedge patented technology for producing engineered quartz stones that replicate the luxurious appearance of natural marble, is a testimony to our efforts in maintaining significant competitive advantage. This strategic partnership positions us as a key player in the Middle East and North Africa (MENA) region, with a right of first refusal in India. By utilizing this advanced technology, we can offer products with more authentic colors and patterns, meeting the growing global demand for high-quality surfaces.

Additionally, the new plant is poised to significantly improve capacity utilization, directly enhancing our profit margins. Optimized production processes will help meet growing product demand more efficiently, leveraging economies of scale. Consequently, we expect stronger margins, boosting our bottom line while allowing us to better serve both existing and new markets with our high-quality engineered surfaces.

In conclusion, despite the challenges faced in Q1 FY25, Global Surfaces Limited has demonstrated resilience and adaptability, achieving solid growth and maintaining a strong operational footing. Our strategic initiatives position us well to capitalize on future opportunities. As we move forward, our focus remains on driving operational excellence, expanding our market presence, 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

Krunal Shah / Naman Maheshwari Captive IR Strategic Advisors Pvt. Ltd.

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

Contact: +919372467194

Email: krunal@cap-ir.com/naman@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 FORWARDLOOKING STATEMENTS TO REFLECT SUBSEQUENT EVENTS OR CIRCUMSTANCES.