Kajaria Ceramics (500233) Q4 19/20 earnings summary

Executive summary

• FY20 consolidated revenue declined 5.01% to ₹2,808.01 crore as the final two weeks of March lockdown erased earlier positive volume and value growth.

• Profitability held up: consolidated PAT attributable to equity holders rose to ₹255.33 crore, with EPS at ₹16.06, aided by the lower corporate tax rate.

• Operations resumed after pandemic closures; August 2020 plant utilization exceeded 85%, and July revenue was over 80% of July 2019.

Financial highlights

• Consolidated revenue from operations was ₹2,808.01 crore vs ₹2,956.20 crore in FY19; EBITDA was ₹415.90 crore, down 7.47% YoY.

• Consolidated EBITDA margin was 14.81% vs 15.20%; PBT was ₹312.45 crore vs ₹358.03 crore.

• Consolidated profit attributable to equity holders was ₹255.33 crore vs ₹226.57 crore; EPS was ₹16.06 vs ₹14.25.

• Standalone revenue from operations was ₹2,571.80 crore vs ₹2,726.07 crore; standalone PAT rose to ₹278.80 crore from ₹245.90 crore.

• Tax expense benefited from election of the 25.168% tax rate; the remeasurement of deferred tax liabilities contributed to lower reported tax expense.

Outlook and guidance

• FY21 financial performance was expected to be marginally below FY20; subdued first-half conditions were expected to be manageable, with demand anticipated to recover near the festive season.

• Growth priorities included expanding dealer reach in smaller towns, new product introductions and building South India sales following a full year of Srikalahasti operations.

• Management expected tile exports to gain momentum as US duties on Chinese tiles and pandemic disruption to major exporters opened opportunities for Indian producers.