KAJARIA CERAMICS LIMITED · PDF fileThe start of production of high end digital ceramic wall...

Oct. 16, 2012

KAJARIA CERAMICS LIMITED

Investor Update – Q2 FY13 /H1 FY13

Investor Update Q2 FY13 / H1 FY13

DISCLAIMER

Certain Statements in this document may be forward-looking within the meaning of applicable laws and regulations. And actual results might differ substantially from those expressed or implied. Such statements are subject to certain risks and uncertainties like regulatory changes, local political or economic developments, technological risks, and many other factors could cause our actual results to differ. Kajaria Ceramics Limited will not be in any way responsible for any action taken based on such statements.

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Content

Chairman’s Message

Financial Performance - Q2 FY13 / H1 FY13

Balance sheet perspective

Income Statement

Shareholding Pattern

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Chairman’s Message

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An increasing number of Indians have the Affordability and Aspiration to upgrade to their lifestyles, than ever before, especially when it comes to do their homes. We only ensured the Availability that we are there at the right time at the right place, with the right product – pan India – to satiate their appetite. This simple philosophy resulted in a 28%* topline growth complimented by a 34%* growth in the bottomline during the H1 FY13 as compared to the corresponding period of the previous year. This gives us the confidence of achieving our initial guidance of 20-25% topline growth in FY 13. The start of production of high end digital ceramic wall tiles at Vennar Ceramics, Vijaywada and our recent acquisition of a fourth unit – a newly set up 2.70 MSM of vitrified tile facility at Morbi, Gujarat should help in achieving the targeted growth.

* Consolidated


Production Growth – Q2FY13

Sales Volume– Q2 FY13

* All figures are on standalone basis and are in million sq. mtr. of tiles, unless mentioned

Strong domestic demand

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Production Growth – H1 FY13

Sales Volume– H1 FY13

6.90 6.92

0.59 1.91

0.00

2.00

4.00

6.00

8.00

10.00

Q2 FY12 Q2 FY13Own Manufacturing JVs

7.49

8.83

13.33 13.91

1.14 3.45

0

5

10

15

20

H1 FY12 H1 FY13Own Manufacturing JVs

14.47

17.36

6.56 6.69

0.56 1.71

0.00

2.00

4.00

6.00

8.00

10.00

12.00

Q2 FY12 Q2 FY13

Own Manufacturing JVs Outsource/Imports

9.61 10.75

2.49 2.34

12.69 12.89

1.13 2.73

0.00

5.00

10.00

15.00

20.00

25.00

H1 FY12 H1 FY13

Own Manufacturing JVs Outsource/Imports

18.05 20.86

4.23 5.24


Continued growth momentum in revenues

R e v e n u e G r o w t h - Standalone

Refer Slide 12 for detailed Income Statement

Consolidated Revenue (net sales) is up by 23% at Rs 388.74 crore in Q2FY13 as compared to Rs 317.28 crore in Q2FY12 and up 27% at Rs 744.78 crore in H1FY13 as compared to Rs 588.59 crore in H1FY12.

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188.79 222.32

14.76

40.97

0

100

200

300

400

500

Q2 FY12 Q2 FY13

Outsourcing/Imports

JVs

Own Manufacturing

316.38

383.99

112.84

120.70

358.26 422.47

28.73

77.94

0

100

200

300

400

500

600

700

800

H1 FY12 H1 FY13

Outsourcing/Imports

JVs

Own Manufacturing

586.15

736.86

199.15

236.45

Rs. / Crores Rs. / Crores


Continued growth momentum in profitability

P A T G r o w t h - Standalone

Refer Slide 12 for detailed Income Statement

Consolidated net profit up by 38% at Rs 26.54 crore for Q2FY13 as compared to Rs 19.26 crore for Q2FY12 and up by 34% at Rs 48.79 crore for H1FY13 as compared to Rs 36.33 crore for H1FY12.

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35.73

49.01

0

10

20

30

40

50

60

H1 FY12 H1 FY13

18.90

26.82

0

5

10

15

20

25

30

Q2 FY12 Q2 FY13

Rs. / Crores Rs. / Crores


EBIDTA / EBIDTA Margin – quarterly progression

Rs.

/ C

rore

s

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46.66

54.63 57.72

53.89 56.86

48.38

56.05 59.94

56.55 60.57

14.75%

15.70% 15.30%

15.27% 14.81%

15.25%

16.00% 16.09%

15.88%

15.58%

12.00%

12.50%

13.00%

13.50%

14.00%

14.50%

15.00%

15.50%

16.00%

16.50%

0

10

20

30

40

50

60

70

Q2FY12 Q3FY12 Q4FY12 Q1FY13 Q2FY13

Standalone Consolidated


With improving balance sheet and cash flows

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263

280

242

226

263

289

278

320

200

250

300

350

FY-10 FY-11 FY-12 H1 FY13

Debt (Rs. Crore)


1.39

1.26

0.86

0.68

1.39

1.28

0.94

0.87

0.50

0.90

1.30

1.70

FY-10 FY-11 FY-12 H1 FY13

Debt Equity (X)



With improving balance sheet and cash flows

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# Capex creditors not considered in working capital cycle. * ROE for 6 months taken at average net worth as on 31st Mar. 12 and 30th sep., 12 and annualised H1 FY13 PAT.

80

42

27 30

80

43

30

32

20.00

30.00

40.00

50.00

60.00

70.00

80.00

FY-10 FY-11 FY-12 H1 FY13

Working Capital Cycle (days)


20.40

29.45

32.00 32.00

20.40

29.46

32.07 31.84

20.00

22.00

24.00

26.00

28.00

30.00

32.00

FY-10 FY-11 FY-12 H1 FY13

Return on Equity (Avg.)



A. SORISO CERAMICS Acquired 51% stake in Soriso Ceramic Pvt Ltd, based in Morbi, Gujarat in February

2011 with an annual capacity of 2.30 MSM of ceramic floor tiles. Further expanded the capacity to 4.60 MSM. Production for enhanced capacity started in March 2012. Soriso has operated at 72% capacity in H1 FY13 due to maintenance shut down taken in the 1st half year. We expect SORISO to operate at almost full capacity in 2nd half of the year.

B. JAXX VITRIFIED Acquired 51% stake in Jaxx Vitrified Pvt Ltd, based in Morbi, Gujarat in February

2012, with an annual capacity of 3.10 MSM. Production has commenced in March 2012. Jaxx has operated at 84% capacity in H1 FY13. We expect the utilisation to improve in the 2nd half of the year.

C. VENNAR CERAMICS Acquired 51% stake in Vennar Ceramics Ltd, based in Vijayawada, Andhra Pradesh in

April 2012, with an annual capacity of 2.30 MSM of high end ceramic wall tiles. Production has commenced on the 1st July, 2012. Vennar has operated at 83% annualised capacity in H1 FY13. We expect VENNAR to operate at almost full capacity in the 2nd half of the year.

C. COSA CERAMICS

Acquired 51% stake in Cosa Ceramics Pvt. Ltd., based in Morbi, Gujarat – on 16th

Oct.’12, with an annual production capacity of 2.70 MSM of polished vitrified tiles.

About Acquisitions (Joint Ventures)

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Income Statement

Financial highlights (Rs in Crore)

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Q2FY13 Q2FY12 Growth H1 FY13 H1 FY12 Growth

Standalone Consolidated Standalone Consolidated Standalone Consolidated Standalone Consolidated Standalone Consolidated Standalone Consolidated

Gross Sales 414.27 419.65 337.02 337.99 23% 24% 795.41 804.37 624.29 626.99 27% 28%

Net Sales 383.99 388.74 316.38 317.28 21% 23% 736.86 744.78 586.15 588.59 26% 27%

EBIDTA 56.86 60.57 46.66 48.38 22% 25% 110.75 117.12 88.53 91.68 25% 28%

EBIDTA MARGIN 14.81% 15.58% 14.75% 15.25% 15.03% 15.73% 15.10% 15.58%

Interest 7.29 9.88 10.47 10.86 -30% -9% 19.35 23.32 19.22 19.95 1% 17%

Depreciation 10.63 12.27 8.82 9.12 21% 35% 20.30 22.96 17.55 18.15 16% 27%

Profit Before Tax 38.94 38.42 27.37 28.40 42% 35% 71.10 70.84 51.76 53.58 37% 32%

Tax 12.12 12.12 8.47 8.80 43% 38% 22.09 22.21 16.03 16.62 38% 34%

Minority Interest - 0.24 - (0.34) - - - 0.16 - (0.63) - -

Cash Profit 37.45 38.81 27.72 28.38 35% 37% 69.31 71.75 53.28 54.48 30% 32%

Profit After Tax 26.82 26.54 18.90 19.26 42% 38% 49.01 48.79 35.73 36.33 37% 34%

Equity 14.72 14.72 14.72 14.72 14.72 14.72 14.72 14.72

EPS (Rs) 3.65 3.61 2.57 2.62 42% 38% 6.66 6.63 4.86 4.94 37% 34%


Shareholding Pattern

As on 30th Sep. 2012

Equity Shares Outstanding – 73.58 millions

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Promoters, 53.51%

Fis / FIIs / Mutual Funds,

19.45%

NRI's, 1.11%

Public/Others, 25.93%


About Us

Kajaria Ceramics is the largest manufacturer of ceramic/vitrified tiles in India. It has an annual capacity of 41.00 mn. sq. meters, distributed across six plants - one in Sikandrabad (UP), one in Gailpur (Raj.), three in Morbi (Guj.) and one in Vijaywada (AP). Kajaria is the most certified ceramic tile company in the world and the only Indian ceramic tile company awarded ‘Superbrand’ status for sixth consecutive time. For further information, please visit www.kajariaceramics.com or contact: Mr. Sanjeev Agarwal Vice President (Finance & Corporate Strategy) +91 11 26946409 (Board), +91 11 26972936 (Direct) Email: [email protected]

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http://www.kajariaceramics.com/

mailto:[email protected]

KAJARIA CERAMICS LIMITED · PDF fileThe start of production of high end digital ceramic wall...

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