Kajaria Ceramics (500233) Q4 14/15 earnings summary

Executive summary

• FY15 delivered growth in a sluggish housing market: consolidated net sales rose 18.87% to ₹2,174.59 crore and profit after minority interest grew 41.36% to ₹175.60 crore.

• Volume growth, higher blended realisation, value-added designs and capacity expansion supported profitability; management planned further capacity additions and wider distribution.

Financial highlights

• Consolidated net sales ₹2,174.59 crore vs ₹1,829.45 crore YoY; blended realisation rose to ₹371/sqm from ₹352/sqm.

• Consolidated EBITDA ₹354.13 crore, up 24.20%; profit after minority interest ₹175.60 crore, up 41.36%.

• Consolidated basic EPS ₹22.74 vs ₹16.71; standalone PAT was ₹168.36 crore vs ₹116.74 crore.

• Standalone net sales grew 19% to ₹2,224 crore; EBITDA increased 20% to ₹286 crore, with margin at 12.86% vs 12.66%.

Outlook and guidance

• Management expected attractive growth opportunities over the next five years, supported by urbanisation, housing, sanitation and smart-city initiatives.

• A 3 MSM ceramic-floor-tile expansion was expected to begin production in Sep/Oct 2015; a 6.5 MSM Rajasthan facility was planned for Q4 FY16.

• Taurus’s 5 MSM polished-vitrified-tile facility began commercial production in June 2015; a 5.7 MSM Floera JV facility in Andhra Pradesh was targeted for 2016-17.

• Plans included deeper dealer and sub-dealer reach in Tier II/III markets, more showroom visibility and continued launches of larger sizes and new designs.