Asian Granito India drops 4% after weak Q4 numbers

Asian Granito India Ltd

Shares of Asian Granito India Ltd were trading almost 4 percent down around noon after weak Q4 numbers disappointed investors.

Asian Granito India consolidated revenue from operations came in at Rs.455.5 crore, registering a 5 percent decline over the year-ago quarter, the company said on May 24.

Margin declined sharply due to a steep rise in gas price quarter on quarter. There was a 13 percent year-on-year increase in price due to the non-availability of administered pricing mechanism gas, which resulted in a spot purchase from Sabarmati gas, the company said in its filing. Product changes in the material subsidiary resulted in lower production and a reduction of the margin on traded goods.

“In Q4FY2023 export revenues stood at Rs54.2 crore. Overall exports from ceramic industry increased during the quarter and year and we anticipate that exports will boost further in coming quarters,” the company said in the filing.

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Business outlook

Demand for tiles in the domestic market is likely to remain mixed on account of inflation pressure on retail as well as institutional customers, it said. The company, however, expects the government to continue to spend on low-cost housing and construction, which will drive demand for ceramic products, it said.

“Export market continue to remain slightly sluggish, however new avenue for companies continue to open resulting good growth in coming quarter. Margin will continue to remain under pressure in coming quarter on account of inflationary pressure on input cost and limited ability to pass on cost pressure to end customer current level.”

At 11.40 am, Asian Granito was trading 3.8 percent down at Rs 47.85 on NSE.

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