Results are little bit disappointing but not bad. Their overall EBITDA is about 33% this quarter in spite of Rs 3.2 crores loss from Apparel business. Yes Granite degrew, I have a feeling, going forward, their Granite segment will not grow much or will grow slower(I mean exports, but domestic granite business could still grow). Good thing Quartz grew, its their rising star, but I expected it to hit Rs 60 crores revenue this quarter considering their claim of Quartz plant running at 80%., either I overestimated, or they misrepresented the capacity utilization, will have to find out. I think Quartz EBITDA for this quarter are about 40%. Which is very impressive. Its encouraging to see how their Quartz segment margins are expanding. Compare the margins for last few quarters of quartz, you will notice. There is 2 months data on stoneupdate.com for this quarter, for July and August it shows 490k (july 175K and August 315K) square footage of quartz imports from India, for now , lets assume September did another 350k square feet (giving some monthly increment ) that makes it 840K square feet for the quarter from India. Give it a realization of $10 per square feet and and Rs60/USD exchange, that makes it little over Rs 50 crores in Rupee terms. That brings us to believe Pokarna is the only exporter of Quartz from India…would like to know if I am getting it wrong.
But most disappointing thing is their apparel business, Rs 1.5 cr revenue and Rs 3.2 crore loss?? Really??
I haven’t had a chance to look at the other Balance sheet details yet. Will spend some time over the weekend.
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