Proceeds from the sale of shares will be utilized to meet long-term working capital and business development
Ahmedabad, August 11 2021: Asian Granito India Limited (AGIL), one of India's leading tiles companies has divested its entire 18.87% stake in its associated company - Astron Paper and Board Mills Ltd (Astron Paper) for Rs. 46.94 crore. Company sold 87.75 lakh equity shares of Astron Paper through block deal at Rs. 53.5 per share on 10 August 2021. Proceeds of Rs. 46.94 crore from the sale of Astron Paper shares will be utilized to meet long term working capital and business development of Asian Granito India Ltd. The capital gains from the sale of shares of Astron Paper will be tax free at the hands of Asian Granito India Ltd.
With a view to focus on the core business of ceramic tiles and building materials, Asian Granito in its board meeting held on 31 May 2021 had approved disinvestment from Astron Paper. Astron Paper is listed on BSE and NSE.
Commenting on the development, Mr. Kamlesh Patel, Chairman and Managing Director, Asian Granito India Ltd said, "It is important for us to capitalize on our core strengths and capabilities and the divestment from Astron Paper is in line with a company's vision to focus on our core business of tiles and building materials which is witnessing an excellent growth. Company has taken many initiatives in the last few years for improving operational efficiency, financial prudence, cost optimization which has resulted in the strong performance and likely to drive the growth going forward. Company has recently reduced its overall consolidated debt by Rs. 35 crores, resulting in debt equity ratio of less than 0.5 times and proceeds of the divestment will further strengthen the liquidity position of Asian Granito."
Company has recently announced a rights issue of Rs. 225 crores.
For FY 21, Company reported a net profit of Rs. 57.23 crores on consolidated basis - growth of 36% Y-o-Y. Net sales for FY 21 was reported at Rs. 1,292 crores with 6% growth Y-o-Y and EBITDA were reported at Rs. 135.95 crore with 16% growth Y-o-Y. EBITDA Margin improved 91 basis points to 10.5% in FY 21 while Net profit margin improved by 100 basis points to 4.4%.
Asian Granito India Ltd has the widest range of products including, ceramic floor, digital wall, vitrified, parking, porcelain, glazed vitrified, outdoor, natural marble, composite marble & Quartz, etc. To provide a complete bathing solution to its customers, the Company added CP Fittings and Faucets to its sanitary division. Company currently exports to more than 100 countries and planning to expand to 120 plus countries.
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