Pokarna AR 19 notes
Total revenue – 471 cr vs 343 cr ( 37 % yoy growth)
PAT at 81 cr vs 43 cr
D/E – 0.67
Granite business is becoming competitive with limited entry barriers.
Granite business margins are unpredictable , it is not possible to know about material quality without quarrying the rock. Hence wastage can sometimes be more , sometimes less. In this year the wastage was on the higher side resulting in higher costs for granite business
We are seeking ways to reduce our costs of quarrying in each of our quarries and enhance our productivity through investments in equipment and technology and maintaining a flexible workforce.
The Board of the Company has decided not to pursue restructuring solution for Apparel business as despite continuous efforts, no attractive restructuring solution could be identified.
Accordingly, Apparel business has been reclassified from discontinued operations to continuing operations in the financial statements.
Company trying hard to turnaround Apparel business.
All future growth aspirations dependent on quartz business, business at an exciting point right now.
All focus on bringing the greenfield expansion in this segment.
Participated in various trade shows across USA and China.
US ,China & India are major markets for granite business
80 % of India’s granite exports are to China.
Chinese enterprises process Indian material for domestic consumption and also export significant quantity of processed granite to the US.
The U.S. Trade Representative (USTR) in March 2019 announced that the United States (US) intended to terminate India’s status from Generalized System of Preferences (GSP) program
Termination of India’s status as a beneficiary developing country under the GSP program would mean that Company’s Granite slabs and cut to size products when imported into the US may be subject to certain safeguard measures or levies
India’s export of quartz surfaces products to the US increased from US$ 38.69 million to US$ 69.54 Million.
In May 2019, a U.S. producer petitioned the U.S. Department of Commerce and the U.S. International Trade Commission to investigate alleged dumping by and subsidies to Indian producers and to levy countervailing and anti-dumping duties against quartz surfaces imports from India
Pokarnia is fighting against this and believes the allegations are unjustified.
Oct 2019 annd Dec 2019 a preliminary determination will be made on this matter and by April 2020 a final call will be taken.
PESL started supplying products to IKEA in India .
PESL is working on creating the groundwork and platform for offering stone installation and maintenance related services in India to retail and other institutional clients.
Apparel business generated revenues of 729.47 lakhs as against 846.04 lakhs in FY2018.
The division’s revenue was entirely derived from domestic market. EBITDA for the segment stood at 274.50 lakhs as against 317.60 lakhs in FY2018
Ashish Kacholia reduced his stake from 7.48 % to 4.98 %