- The financials of this quarter were impacted due to a planned shutdown of 15-20 days of Quartz business for maintenancepurposes. It went up to 45 days.
- Out of total revenue of Rs. 68 crore, quartz business revenues were Rs. 33 crore as against Rs. 53 crore during Q1 FY17 and granite business revenues were Rs. 34 crore as against Rs. 36 crore.
- EBITDA for the quarter stood at Rs. 18 crore as against Rs. 34 crore, lower by 47%.
- Margins for the quarter stood at 26% as against 39% generated during Q1 FY17.
- PAT stood at Rs. 5 crore as against Rs. 18 crore generated during Q1 FY 17.
- Quartz is getting exported about 85% and Gratine about 68%.
Industry and Business Update
- Apart from IKEA, the company is looking to penetrating domestic market by direct marketing to builders and architectural community.
- Demand in US is very good and the growth of quartz is much better than the other products. Business is being done with customers in Australia
- The company has started a new quarry for improving the efficiency for granite.
- To improve realizations, some products need to be replaced because increasing the prices is not possible as the industry is highly competitive.
- Rs. 325 crore CAPEX has been planned for the Greenfield.
- Capacity Build up take 15 to 18 months for entire erection and coming into production so the timeline cannot be given until the company gets the land.
- The company goes end consumers through distributors and realization to distributor is around $6-$8 on an average which if going to increase with innovative products.
- There are 25 companies which Breton licensed players with 65 line working as of now.
- Pricing of Breton Technology users and others is almost similar but it depends on the product quality. If the product looks exotic, it attracts price more than the average.
- Since Breton does not want to sell anything to China, China produces the Chinese local machine made products which are shipped to US.
- Bretonstone fetches better prices because Chinese productive is extremely low though they also make good money by providing manual products.
- The estimated time of shutdown dragged to 45 days from 15-20 days because of being a first shutdown in eight years, an entire revamping was needed.
- Land which was originally allotted by the state govt. has been taken back because govt. decided to construct a new govt. office complex in that area. So, there is delay in expansion because of the land issue
- The company also did a sponsorship of the CREDAI event in London where about 800 odd builders from India were there.
- The plan to add one polishing line, and the CAPEX required for the same are yet to be finalized.
- There is margin pressure on the quartz side because continuous innovation is required in the business so the company is looking for new innovative looks which can bring better realization.