Pokarna Ltd. — Investor Presentation 2021

Jun 21, 2021

Date: 21 June, 2021

Department of Corporate Services,	Listing Department
BSELimited,	National Stock Exchange of India Ltd.,
Phiroze Jeebhoy Towers,	Exchange Plaza, C-1, Block G,
Dalal Street,	Bandra Kurla Complex,
Mumbai — 400001	Bandra (E)
	Mumbai- 400 051

Dear Sir,

Ref: Scrip Code / Symbol : 532486/ Pokarna

Sub: Result Presentation.

Please find the enclosed Q4 FY 21 Results Presentation.

This is for your information and dissemination.

Table of Content

Safe Harbor

No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the date of this presentation. Certain statements made in this presentation may not be based on historical information or facts and may be "forward looking statements" based on the currently held beliefs and assumptions of the management of the Company, which are expressed in good faith and in their opinion reasonable, including those relating to the Company's general business plans and strategy, its future financial condition and growth prospects and future developments in its industry and its competitive and regulatory environment.

Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance or achievements of the Company or industry results to differ materially from the results, financial condition, performance or achievements expressed or implied by such forwardlooking statements, including future changes or developments in the Company's business, its competitive environment and political, economic, legal and social conditions. Further, past performance is not necessarily indicative of future results. Given these risks, uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward-looking statements. The Company disclaims any obligation to update these forward-looking statements to reflect future events or developments.

This presentation is for general information purposes only, without regard to any specific objectives, financial situations or informational needs of any particular person. This presentation does not constitute an offer or invitation to purchase or subscribe for any securities of the Company by any person in any jurisdiction, including India and the United States. No part of it should form the basis of or be relied upon in connection with any investment decision or any contract or commitment to purchase or subscribe for any securities. The Company may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such change or changes. This presentation may not be copied or disseminated in any manner.

Financial Highlights

Business and Financial Highlights FY21 – Consolidated

Commenced commercial operations - New state-of –the-art quartz surfaces plant in Telangana. The new unit is equipped with a battery of multi-axis anthropomorphic robots to produce exotic natural looking as well as studio designs and is also powered by a whole new generation of fabrication equipment to ensure world-class quality with maximum speed and precision.

Granite business – Business environment continues to remains challenging; undertaking steps towards improving efficiencies and product mix

Quartz business – While demand momentum and visibility remains good (International and domestic); shipping side challenges persists

Apparel business – Efforts directed towards improving efficiencies and containing losses

Integrated product offerings – In addition to manufacturing quartz surfaces, PESL now offers measurement, fabrication and installation services to its end users in India.

PESL is also an exclusive partner of IKEA in India for measurement, supply and installation of made to measure quartz surface worktops in India

Consolidated Financials Rs. In Cr

Particulars	FY21	FY20	%
Revenues	295	394	(25.1)
EBITDA*	88	136	(35.3)
Margins (%)	30	35	(468 bps)
Depreciation	21	23	(8.7)
Interest	21	22	(4.5)
PAT	28	71	(60.6)
Margins(%)	10	18	(850 bps)

*Q4FY21 includes –

• One time inventory write-down of ~Rs. 5 crore on finished goods to cover risks arising from slow-moving items, discontinued products, excess inventories and net realizable value lower than cost.
• ~Rs.6 crore towards CSR expenses, included under the head "other expenses".

Segmental Performance

Segmental Performance

eorCr	Revenue	FY21	FY20	Shift %
s.R	Granite	74	71	+4.2
	Quartz Surfaces	219	317	(30.9)
	Apparels	2	6	(66.7)

EBITDA	FY21	FY20	Shift %
Granite	17	10	70.0
Quartz Surfaces	73	126	(42.1)
Apparels	(1.98)	(0.17)	(10.0)

CapitalEmployed	FY21	FY20	Shift %
Granite	73	78	(5.41)
Quartz Surfaces	514	476	7.95
Apparels	14	16	(10.32)

Rs. Crore

Rs. Crore

Segmental Performance

Witnessed gradual recovery during the course of the year; business environment though continues to remain challenging. Focused on improving efficiencies and product mix

Demand momentum continues to remain strong. Witnessing positive response for products in domestic and International markets. Shipping side bottlenecks though continue to impact business performance. Q4 FY21 EBITDA includes one time inventory write down of Rs.5 crore

Undertaking steps towards containing losses

Key Developments

Enhancing Brand visibility

Commissioning of new unit

• PESL commenced commercial operations during March 2021 at its new state of the art, one of the largest, most modern and environment friendly quartz surfacing plants located at Telangana.
• The new facility is equipped with the most advanced Bretonstone technologies and is spread over 160,000 square meters and has a built-up area of approximately 60,000 square meters.
• It"s a smart factory with several robots and other high levels of process automation for supporting a wide range of Industry 4.0 applications and state-of-the-art fabrication division equipped with disc and waterjet cutting machines, CNC stoneworking centers, edge polishers and other machines for ensuring maximum speed and precision in fabrication
• When fully operational, it will more than double our production capacity and will be used mainly for the production of super jumbo size 347 x 201 cm and jumbo size 330 x 165 cm slabs.
• The unit will help PESL meet the growing requirements of its customers located across North America, Europe, Middle East and India

Build strong & innovative product pipeline

Improve operational efficiencies

Focus on branding

Widen reach and presence

Going Forward

Quartz

• Capacity ramp up at new unit will be implemented in a phased manner over next 12-18 months.
• Expertise, cutting-edge technology, continuous research, design and development efforts to contribute to continued excellence in long-term.
• Positive industry dynamics in the US market.

Granite

• Focusing on improving product mix by increasing share of margin accretive "customized cut to size" products
• Working towards improving efficiencies
• Undertake cost rationalization measures

Apparels

Focusing on containing costs and limiting losses

Key Strengths & Capabilities

Quartz

• Experienced leadership team with significant tenure and track record.
• State of art production facilities and continued focus on R&D
• Comprehensively serving through private label products and Quantra brand
• Laser-focused on operational excellence
• Focused in key niches in the US market with clear roadmap to healthy margins.

Granite

• Vertically integrated with captive quarries and state of the art mining and processing infrastructure
• Broad, diverse presence by geography, for last 25 years
• Experienced management team.

Company Overview

Business Overview

Andhara Pradesh, Telangana and Tamil Nadu

Mfg. unit in Telangana

Granite

• Backward Integrated Sourcing majority of raw material from captive quarries.
• Captive quarries rich in resources Home to some of the most sought after colors.

Black Galaxy	Steel Grey	Tan Brown
Silver Waves	Arizona brown	Dragon Red
Hail Storm	Flash Blue	Vizag Blue
Golden Dream	Pokarna green	Tan Brown Classic
Coffee brown	Black Coffee	Cream Cashmere
SapphireBrown

• Diverse / Rich offerings Company"s color palette includes over 75 varieties of granite sourced from India, Ukraine, Madagascar and Norway.
• Deep entrenched relationship with dealers across key regions of operations.

State-of-the-art Manufacturing Facilities

Fully automated production line – Cutting edge technology armed with fully computer-controlled high speed polishing lines transforms granite from its crude form to final product unmatched in quality.

Unit – I

Survey No.123, Tooprantpet (Village), Choutuppal (Mandal), Yadadri Bhuvanagiri (District), Telangana.

Unit - II

Survey No. 563, 568 & 574, Aliabad Village, Shameerpet, (Mandal), R.R. District, Telangana.

Quartz Surfaces

• Pokarna Engineered Stone Limited (PESL) wholly owned subsidiary of Pokarna Ltd., is India"s largest manufacturer and exporter of quartz surfaces.
• Global Demand Products exported across various geographies.
• Diverse Product offering Color Palette of 80+ catering to best of every market across all spectrums.
• Availability of abundant Raw material: The States of Telangana and Andhra Pradesh are found to be home to some of the best quality quartz raw material.
• In addition to private label manufacturing, distributed and supplied across the globe under the brand name Quantra® .

State-of-the-art Manufacturing Facilities

• Two state-of-the-art Manufacturing units
• Best in business technology Bretonstone® System of Breton S.p.A, Italy. Pokarna is the only Company to use this technology in India.

Factory:

Unit I:Plot. No: 45, APSEZ, Achutapuram, Rambilli Mandal, Vishakapatnam District, Andhra Pradesh. Unit II: Survey No.901-902,908-912,Mekaguda Grampanchayat, Nandigam Mandal, Ranga Reddy, Telangana

Financial Performance

FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 *Q4FY21 includes – • One time inventory write-down of ~Rs. 5 crore on finished goods to cover risks arising from slow-moving items, discontinued

products, excess inventories and net realizable value lower than cost. • ~Rs.6 crore towards CSR expenses, included under the head "other expenses".

Investor Contacts

For more information about us, please visit www.pokarna.com or contact:

M.Viswanatha Reddy Gavin Desa / Suraj Digawalekar Pokarna Limited CDR India 105, 1 st Floor, Surya Towers, S. P. Road, Tel: +91 22 6645 1237 / 1219 Secunderabad, Telangana – 500003 Fax: +91 22 6645 1213 Tel: +91 40 2784 4101 / 2784 2182 E-mail: gavin@cdr-india.com Fax: +91 40 2784 2121 suraj@cdr-india.com E-mail: companysecretary@pokarna.com

BSE : 532486 NSE: POKARNA CIN: L14102TG1991PLC013299