Kajaria Ceramics (500233) Q4 17/18 earnings summary

Executive summary

• FY18 was resilient amid weak sector demand: sales volume grew 6.23% and excise-adjusted revenue rose 6.31%, while profitability declined under higher gas costs and GVT price pressure.

• Consolidated EBITDA fell 8.05% to ₹456.36 crore and PAT after minority interest declined 7.07% to ₹234.96 crore.

Financial highlights

• Consolidated revenue from operations was ₹2,782.55 crore vs ₹2,854.51 crore; FY18 and FY17 are not strictly comparable after GST changed excise-duty treatment.

• Excise-adjusted revenue increased 6.31% to ₹2,710.60 crore from ₹2,549.63 crore; consolidated EBITDA was ₹456.36 crore vs ₹496.33 crore.

• Consolidated PAT was ₹234.96 crore vs ₹252.81 crore; basic EPS was ₹14.78 vs ₹15.91.

• Standalone PAT was ₹252.32 crore vs ₹270.16 crore; standalone basic EPS was ₹15.88 vs ₹17.00.

Outlook and guidance

• Plans include a 5 MSM GVT facility in Andhra Pradesh to serve value-accretive South and West markets.

• Kajaria Plywood was launched as a new vertical using an outsourcing model; management cited a ₹180 billion market and an unorganised competitive base.

• Bathware revenue grew ~25% in FY18 and losses declined; FY19 priorities include cost optimisation, volume growth and a ₹15 crore branding and advertising budget.

• GST rate reduction to 18% and the e-way bill were expected to support affordability and organised players’ share over the medium term.