Cera Sanitaryware (532443) Q1 24/25 earnings summary

Executive summary

• Q1 FY 2025 faced subdued demand due to heatwaves and general elections, resulting in revenue of INR 398 crore and profit after tax of INR 47 crore, both declining year-over-year.

• Sanitaryware and porcelain segments contributed 53% and 36% of revenues, respectively, with luxury and premium product focus continuing.

• Strategic initiatives include new product launches, expansion into luxury, and deeper penetration in Tier-2 and Tier-3 cities.

• B2C sales comprised 64% of revenue, with project (B2B) sales showing a 15%-20% increase in order book since December 2023.

• Standalone and consolidated unaudited financial results for Q1 FY25 were approved and reviewed by the Board and Audit Committee on August 12, 2024.

Financial highlights

• Revenue from operations declined 6.8% year-over-year to INR 398 crore in Q1 FY 2025.

• EBITDA was INR 72 crore (down from INR 84 crore), with EBITDA margin at 17.5% (down 150 bps year-over-year).

• Profit after tax fell 16.1% to INR 47 crore; EPS at INR 36.11 versus INR 43.35 last year.

• Consolidated revenue from operations for Q1 FY25 was ₹40,071.18 lakhs, down from ₹42,863.37 lakhs in Q1 FY24.

• Consolidated net profit after tax for Q1 FY25 was ₹4,745.78 lakhs, compared to ₹5,670.16 lakhs in Q1 FY24.

Outlook and guidance

• Management maintains guidance of INR 2,900 crore revenue by March 2027 and 16% CAGR over three years, factoring in slow H1 FY 2025.

• Margins expected to remain in the 16%-17% range for the rest of FY 2025, with improvement anticipated as demand recovers in H2.

• Growth momentum expected to pick up from Q3 FY 2025, supported by a strong project order book.

• A proposed revision in capital gains tax rates, if enacted, would decrease deferred tax expenses and liabilities by ₹784.99 lakhs.