kajaria ceramics limited · e. kajaria floera ceramics kajaria floera ceramics pvt. ltd, is putting...
TRANSCRIPT
July 24, 2018
KAJARIA CERAMICS LIMITED
Investor Update – Q1 FY 19
1/14
Investor Update Q1 FY19
Content
Chairman’s Message
Financial Performance – Q1 FY 19
Balance sheet perspective
Joint Venture / Subsidiaries
Income Statement
Shareholding Pattern
2/14
Chairman’s Message
The first quarter of 2018-19 appears to be a sign of better times to come as the northward movement of gas prices seems to have stabilised and the price decline in the value-added GVT product appears to be halted. Even as these factors muted the sectoral performance, Kajaria registered a satisfactory performance in the first quarter of the 2018-19. Sales volumes grew by about 9% and revenue grew by about 5% over the corresponding period in the previous year however the net profit declined by 11% on YoY basis. Our bathware segment registered a robust revenue growth of 69% in Q1 FY19 over the corresponding previous quarter. What was indeed satisfying that we maintained our working capital cycle in the face of difficult times. Going forward, the normal monsoon, increased income for the rural masses (owing to the significant increase in MSP for agri-produce) holds promise for increased discretionary spending and should have positive impact on demand for tiles.
3/14
Investor Update Q1 FY19
Tile Volume Data (consolidated)
Production Growth (MSM) - Q1 FY19
Sales Growth (MSM) – Q1 FY19
4/14
9.62 11.32
5.65 4.99
15.27 16.31
0.00
4.00
8.00
12.00
16.00
20.00
Q1 FY18 Q1 FY19
Own Manufacturing JVs
8.69 10.50
4.51
4.71
3.28 2.71
16.48 17.92
0.00
5.00
10.00
15.00
20.00
Q1 FY18 Q1 FY19Own Manufacturing JVs Outsource/Imports
Investor Update Q1 FY19
Revenue Growth
R e v e n u e G r o w t h - Consolidated
Rs. / Crores
Refer Slide 12 for detailed Income Statement 5/14
340.02 388.47
175.91
153.48
88.73 75.40
23.51 39.67 628.17
657.02
100.00
200.00
300.00
400.00
500.00
600.00
700.00
Q1 FY18 Q1 FY19
Sanitary ware / Faucets
Outsourcing (Tiles)
JVs (Tiles)
Own Manufacturing (Tiles)
Investor Update Q1 FY19
Profitability
P A T G r o w t h - Consolidated
Rs. / Crores
Refer Slide 12 for detailed Income Statement 6/14
50.98
45.57
10.00
20.00
30.00
40.00
50.00
60.00
Q1 FY18 Q1 FY19
Investor Update Q1 FY19
EBITDA / EBITDA Margin (consolidated)* – quarterly progression R
s./ C
rore
s
* Recomputed as per IND - AS
112.64
7/14
104.31
122.02
109.96 120.06
96.81
16.61%
18.18%
16.63%
16.01%
14.73%
10.00%
12.00%
14.00%
16.00%
18.00%
20.00%
22.00%
0
20
40
60
80
100
120
140
Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19
Investor Update Q1 FY19
Key Ratios (consolidated)*…………
*Recomputed as per IND - AS
Debt Equity (X) Debt (Rs. Crore)
8/14
0.28
0.17
0.12
0.08
0.00
0.10
0.20
0.30
0.40
0.50
Mar-16 Mar-17 Mar-18 Jun-18
294
213
170
126
0
50
100
150
200
250
300
350
Mar-16 Mar-17 Mar-18 Jun-18
Investor Update Q1 FY19
Key Ratios (consolidated)*
*Recomputed as per IND - AS
# Working capital days’excludes capex creditors and cash & Bank balance and not comparable with previous periods due to GST.
Return on Equity (Avg.) *
## ROE as on 30th Jun 18 taken at average of net worth as on 31st Mar 18 & 30th Jun. 18 and Q1FY 19 PAT.
Working Capital Cycle (days)
9/14
44 46
60 57
0
20
40
60
80
Mar-16 Mar-17 Mar-18 Jun-18
26.51
23.58
18.61
13.09
5.00
10.00
15.00
20.00
25.00
30.00
35.00
Mar-16 Mar-17 Mar-18 Jun-18
Investor Update Q1 FY19
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 in March 2012. The revised capacity of Soriso works out to 3.67 MSM per annum due to change in product profile.
B. JAXX VITRIFIED Acquired 51% stake (now 82%) in Jaxx Vitrified Pvt Ltd, based in Morbi, Gujarat in February 2012, with an annual capacity of 3.10 MSM. Production commenced in March 2012. Jaxx has acquired another plant with a 2.60 MSM annual capacity of polished vitrified tile in April 2013 in Morbi making the total capacity of Jaxx to 5.70 MSM per annum. Further expansion of 4.50 MSM polished vitrified tile has increased Jaxx capacity to 10.20 MSM.
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. The revised capacity of Vennar works out to 2.90 MSM per annum due to change in product profile.
D. 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 and further increased to 5.70 MSM in Sep. 2014.
10/14
Joint Ventures / Subsidiaries
Investor Update Q1 FY19
Joint Ventures / Subsidiaries
E. KAJARIA FLOERA CERAMICS
Kajaria Floera Ceramics Pvt. Ltd, is putting up a manufacturing facility of glazed vitrified tiles with a capacity of 5.00 MSM p.a. (earlier planned 5.70 msm p.a. of polished vitrified tiles) in Andhra Pradesh. The land has already been acquired. The plant is expected to be commissioned by end of this fiscal.
F. KAJARIA BATHWARE (P) LTD. (KBL)
a)Sanitaryware: Kajaria Sanitaryware (P) Ltd. (KSPL), in which KBL was holding 64% shares (82% Now), has started the production of sanitaryware in April 2014. KSPL is in the process of increasing the capacity at the existing location from 5.40 lac pcs p.a. to 6.00 lac pcs p.a. (with ability to produce more value added products). The same shall be operational by end of July 2018. b)Faucet: The 1.00 million pieces faucet facility at Gailpur (Rajasthan) commenced commercial production in July 2015. The plant has operated at 60% of its capacity in Q1 FY19. We hope to achieve 75% capacity utilisation by end of this year.
11/14
Investor Update Q1 FY19
Income Statement
Financial highlights (Rs / Crores)
12/14
Q1 FY19 Q1 FY18 Growth FY18 FY17 Growth
Standalone Consolidated Standalone Consolidated Standalone Consolidated Standalone Consolidated Standalone Consolidated Standalone Consolidated
Net Sales 614.11 657.02 621.43 628.17 -1% 5% 2580.68 2710.60 2527.96 2549.63 2% 6%
EBIDTA 87.71 96.81 94.05 104.31 -7% -7% 427.89 456.36 438.66 496.33 -2% -8%
EBIDTA MARGIN 14.28% 14.73% 15.13% 16.61% 16.58% 16.84% 17.35% 19.47%
Depreciation 16.01 22.67 14.73 21.84 9% 4% 61.76 88.53 53.20 81.39 16% 9%
Other Income 6.68 2.38 5.32 2.80 26% -15% 23.51 10.84 25.34 15.36 -7% -29%
Interest 1.04 4.17 0.98 7.80 6% -47% 4.48 24.10 3.54 34.00 27% -29%
Exceptional Items 3.61 -0.75 3.61 -0.75
Profit Before Tax 77.34 72.35 80.05 78.22 -3% -8% 381.55 355.32 407.26 396.30 -6% -10%
Tax Expense 26.87 26.98 27.91 29.31 -4% -8% 129.23 126.72 137.10 142.49 -6% -11%
Minority Interst -0.20 -2.07 -6.36 1.00
Cash Profit 66.48 68.24 66.87 72.82 -1% -6% 314.08 323.49 323.36 334.20 -3% -3%
Profit After Tax 50.47 45.57 52.14 50.98 -3% -10% 252.32 234.96 270.16 252.81 -7% -7%
Equity Share Capital 15.90 15.90 15.89 15.89 15.90 15.90 15.89 15.89
EPS (Basic) (Rs.) 3.18 2.87 3.28 3.21 -3% -10% 15.88 14.78 17.00 15.91 -7% -7%
Investor Update Q1 FY19
Shareholding Pattern
As on 30th Jun 2018
Equity Shares Outstanding – 158.95 millions
13/14
47.58%
35.63%
0.54%
16.25%
Promoters
Public / Others
NRI's
FIs /FPIS / Mutual Funds
Investor Update Q1 FY19
About Us
Kajaria Ceramics is the largest manufacturer of ceramic/vitrified tiles in India and
the 9th largest in the world. It has an annual capacity of 68.37 mn. sq. meters
presently, distributed across eight plants - one in Sikandrabad (UP), one in
Gailpur (Rajasthan), One in Malutana (Rajasthan), four in Morbi (Gujarat) and
one in Vijaywada (AP).
For further information, please visit www.kajariaceramics.com or contact:
Mr. Sanjeev Agarwal, C FO
+91 11 26946409 (Board),
+91 11 41064110 (Direct)
Email: [email protected]
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.
14/14
Mrs. Pallavi Bhalla, DGM Investor Relations
+91 11 26946409 (Board),
+91 11 41064552 (Direct)
Email: [email protected]