Significant Post Balance Sheet Events:

The Company has entered into a definitive agreement with Tenax SPA Italy (Tenax Italy) for acquiring
70% of the share capital of Tenax India Stone Products Pvt Ltd (Tenax India) for cash consideration of
approximately Rs.80.00 crores (depending upon the actual cash and working capital at the time of
closing), subject to certain preconditions being met prior to closing of the transaction. Tenax Italy is
the leading manufacturer of adhesives, coating, surface treatment chemicals and abrasives for the
marble, granite and stone industry. Tenax India is a subsidiary of Tenax Italy engaged in the sales and
distribution of Tenax Italy products for the retail market in India.

Company’s overall performance:

For the full financial year 2019-20, the company posted a net profit of Rs 1,122.05 crore as
compared with Rs 928.39 crore in 2018-19. The 4 th quarter performance was significantly impacted
by the lockdown on account of the pandemic as well as related disruptions in the supply chain.
While topline growth remains subdued, earnings have improved substantially, primarily as a result of
softer input costs. Operating income during the year rose 3.0% on a year-on-year (YoY) basis. The
company's operating profit increased by 12.6% YoY during the fiscal. Operating profit margins
witnessed a fall and down at 20.9% in FY20 as against 19.1% in FY19. Depreciation charges increased
by 28.0% and finance costs increased by 28.9% YoY, respectively. Other income grew by 1.9% YoY.
Net profit for the year grew by 20.9% YoY. Net profit margins during the year grew from 12.8% in
FY19 to 15.1% in FY20. The company's current liabilities during FY20 stood at Rs 19 billion as
compared to Rs 16 billion in FY19, thereby witnessing an increase of 19.6%. Long-term debt stood at
Rs 251 million as compared to Rs 85 million during FY19, a growth of 195.3%. Current assets rose 5%
and stood at Rs 38 billion, while fixed assets rose 21% and stood at Rs 21 billion in FY20. Overall, the
total assets and liabilities for FY20 stood at Rs 65 billion as against Rs 59 billion during FY19, thereby
witnessing a growth of 11%. The company's cash flow from operating activities (CFO) during FY20
stood at Rs 13 billion, an improvement of 51.5% on a YoY basis. Cash flow from investing activities
(CFI) during FY20 stood at Rs 1 billion on a YoY basis. Cash flow from financial activities (CFF) during
FY20 stood at Rs -8 billion on a YoY basis. Overall, net cash flows for the company during FY20 stood
at Rs 5 billion from the Rs -183 million net cash flows seen during FY19. The trailing twelve-month
earnings per share (EPS) of the company stands at Rs 22.1, an improvement from the EPS of Rs 18.3
recorded last year. The price to earnings (P/E) ratio, at the current price of Rs 1,618.5, stands at 95.1
times its trailing twelve months’ earnings. The price to book value (P/BV) ratio at current price levels
stands at 16.0 times, while the price to sales ratio stands at 9.8 times. The company's price to cash
flow (P/CF) ratio stood at 64.2 times its end-of-year operating cash flow earnings. The company's
current ratio deteriorated and stood at 2.0x during FY20, from 2.3x during FY19. The current ratio
measures the company's ability to pay short-term and long-term obligations. The company's interest
coverage ratio deteriorated and stood at 44.7x during FY20, from 52.5x during FY19. The interest
coverage ratio of a company states how easily a company can pay its interest expense on
outstanding debt. A higher ratio is preferable. The ROE for the company improved and stood at
25.2% during FY20, from 22.4% during FY20. The ROE measures the ability of a firm to generate
profits from its shareholders’ capital in the company. The ROCE for the company improved and
stood at 33.6% during FY20, from 32.9% during FY19. The ROCE measures the ability of a firm to
generate profits from its total capital (shareholder capital plus debt capital) employed in the
company. The ROA of the company improved and stood at 17.7% during FY20, from 16.1% during
FY19. The ROA measures how efficiently the company uses its assets to generate earnings. Over the
last one year, the company’s share price moved up from Rs 1,327.8 to Rs 1,618.5, registering a gain
of Rs 290.7 or around 21.9%.