Kajaria Ceramics (500233) Q4 15/16 earnings summary

Executive summary

• FY16 tile volumes rose 10% and topline grew 12%; consolidated revenue from operations increased 11% to ₹2,408.81 crore, with EBITDA and PAT each up 31%.

• Growth was volume-led as new capacity came onstream; operating efficiencies, lower imported R-LNG costs and a higher in-house production mix supported margin expansion.

Financial highlights

• Consolidated net sales were ₹2,408.81 crore vs ₹2,177.64 crore; EBITDA was ₹463.36 crore vs ₹354.13 crore; PAT after minority interest was ₹229.20 crore vs ₹175.60 crore.

• Standalone net sales rose 10% to ₹2,441 crore; EBITDA increased 37% to ₹392 crore and PAT rose 40% to ₹235 crore.

• Consolidated gross sales reached ₹2,695.94 crore; cash profit was ₹302 crore, up from ₹231 crore in FY15.

Outlook and guidance

• Strategy: add capacity across locations, broaden designs and sizes, deepen Tier I–III distribution, refresh dealer displays and increase brand investment.

• Management expected housing, sanitation, smart-city and urban-renewal programmes, GST and higher disposable incomes to support medium-term tile demand.

• The Malutana plant was commissioned in January 2016; planned projects included 5.70 MSM polished vitrified capacity in Southern India and ~2.30 MSM glazed capacity at Sikandrabad by Dec 2016.