💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue for FY19 was INR 272.18 Cr, representing a 15% decrease from INR 320.34 Cr in FY18. However, Q4 FY19 revenue grew 9% YoY to INR 83.53 Cr. The mining business is the primary driver, with a new engineered stone division launched in fiscal 2021 to diversify revenue streams.

Geographic Revenue Split

The company operates primary mining activities in Ramganjmandi, Kota, Rajasthan, India. It also has international operations through its wholly-owned subsidiary, Al Rawasi Rock and Aggregates LLC, based in the UAE, which contributes to the consolidated rock and aggregates segment.

Profitability Margins

Profitability showed significant improvement in Q4 FY19; PAT margin increased to 12.6% (INR 10.52 Cr) from 8.3% (INR 6.39 Cr) YoY. PBT for FY19 was INR 30.36 Cr, up 15% from INR 26.39 Cr in FY18, despite lower revenues, indicating improved operational efficiency.

EBITDA Margin

EBITDA margin for Q4 FY19 improved to 26.1% (INR 21.78 Cr) from 19.8% (INR 15.28 Cr) in Q4 FY18, a 43% increase in absolute EBITDA. For the full year FY19, EBITDA was INR 55.39 Cr (20.3% margin) compared to INR 52.72 Cr (16.4% margin) in FY18.

Capital Expenditure

The company is investing in technology up-gradation to match global standards and recently established an engineered stone division. While specific future INR Cr figures are not disclosed, the group maintains an above-average financial risk profile with a net worth of INR 179.14 Cr as of March 31, 2020.

Credit Rating & Borrowing

CRISIL upgraded the rating to 'CRISIL BB+/Positive/CRISIL A4+' in October 2020 from 'CRISIL BB/Negative'. Total rated bank facilities were INR 130 Cr. Borrowings include a Cash Credit of INR 38 Cr, ECB of INR 27.05 Cr, and FCNR loans of INR 28.86 Cr. Promoters provided unsecured loans of INR 63.68 Cr as of March 31, 2020.

⚙️ Operational Drivers

Raw Materials

The primary raw material is natural Kota stone deposits from owned mines, representing the core of the business. Other inputs include consumables for mining and technology components for the engineered stone division.

Import Sources

Raw materials are primarily sourced from the company's own mines in Ramganjmandi, District Kota, Rajasthan. Aggregates are sourced from operations in the UAE.

Key Suppliers

Not specifically disclosed, as the company is a primary miner; however, it relies on equipment and utility providers for mining operations.

Capacity Expansion

The company is the largest stone mining company in India. It recently expanded into the engineered stone division (fiscal 2021) and resumed full mining operations after obtaining a 5-year consent to operate.

Raw Material Costs

Not disclosed as a specific percentage of revenue, but the company faces high archetypical costs during the monsoon (Q2), specifically for dewatering mines, which often leads to seasonal losses.

Manufacturing Efficiency

Bank limit utilization averaged 86% through March 2020. Efficiency is impacted by Q2 seasonality where labor remains comparatively idle due to rains.

Logistics & Distribution

The company distributes Kota stone to over 1,000 diversified customers. Distribution costs are inherent to the heavy nature of stone products but specific INR values are not provided.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

Growth is targeted through the resumption of mining activities, the launch of the engineered stone division, and technology upgrades to meet global standards. The company leverages its position as the only listed player in the stone mining industry to maintain a strong market position.

Products & Services

Kota stone, engineered stone, and rock aggregates.

Brand Portfolio

ASI Industries, Al Rawasi Rock and Aggregates.

New Products/Services

Engineered stone division, which started in fiscal 2021, is expected to improve the business risk profile.

Market Expansion

The company is diversifying its business and investing in technology to match global standards, targeting both domestic and international markets through its UAE subsidiary.

Market Share & Ranking

Largest stone mining company in India and the only listed player in the stone mining industry.

🌍 External Factors

Industry Trends

The industry is seeing a shift toward engineered and processed stones. ASI is positioning itself by diversifying into engineered stone while maintaining its lead in natural Kota stone mining.

Competitive Landscape

The industry is largely unorganized; ASI Industries has no direct listed peers in the stone mining sector in India.

Competitive Moat

The company's moat is built on 30+ years of experience, ownership of large-scale mining assets, and being the only listed entity in its sector. This scale provides a cost advantage that is difficult for smaller, unorganized players to replicate.

Macro Economic Sensitivity

The business is sensitive to construction and real estate cycles, as well as environmental regulations affecting mining licenses.

Consumer Behavior

There is an increasing demand for standardized, high-quality stone products, which the company is addressing through its engineered stone division.

Geopolitical Risks

Operations in the UAE through Al Rawasi Rock and Aggregates LLC expose the company to Middle Eastern regulatory and geopolitical environments.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Mines and Minerals (Development and Regulation) Act and environmental clearances. Compliance with SEBI LODR and the Companies Act 2013 is maintained.

Environmental Compliance

The company must comply with National Green Tribunal (NGT) norms. It recently secured a consent to operate for the next five years following a short-duration ban.

Legal Contingencies

The company has disclosed pending litigations in Note 31 of its financial statements. It also transferred INR 25.96 Lakhs (INR 0.26 Cr) to a special account for unspent CSR amounts related to ongoing projects.

⚠️ Risk Analysis

Key Uncertainties

Regulatory changes regarding mining rights and environmental norms (NGT) pose a high risk. Seasonality (monsoon) remains a consistent operational uncertainty.

Geographic Concentration Risk

High concentration in Rajasthan for mining, though partially offset by the UAE aggregates business.

Third Party Dependencies

Low dependency on third-party suppliers for raw materials as it owns its mines, but dependent on power and equipment vendors.

Technology Obsolescence Risk

The company is actively mitigating technology risks by upgrading to global standards in its stone processing and engineered stone units.

Credit & Counterparty Risk

Credit risk is mitigated by a highly diversified base of over 1,000 customers.