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OCT 27, 2014
KAJARIA CERAMICS LIMITED
Investor Update – Q2 FY15 / H1 FY15
Investor Update Q2 FY15 / H1 FY 15
DISCLAIMER
Certain Statements in this document may be forward-looking
within the meaning of applicable laws and regulations. And
actual results might differ substantially from those expressed or
implied. Such statements are subject to certain risks and
uncertainties like regulatory changes, local political or economic
developments, technological risks, and many other factors could
cause our actual results to differ. Kajaria Ceramics Limited will
not be in any way responsible for any action taken based on such
statements.
2
Investor Update Q2 FY15 / H1 FY 15
Content
Chairman’s Message
Financial Performance - Q2 FY15 / H1 FY15
Balance sheet perspective
Joint Venture / Subsidiaries
Income Statement
Shareholding Pattern
3
Investor Update Q2 FY15 / H1 FY 15
Chairman’s Message
4
.
In Q2/2014-15, we scaled new heights in terms of performance, capacity and respect.
Performance: Our topline increased by 16% over the corresponding period in the previous
year. Operational efficiencies manifested in a 22% and 48% growth in the EBIDTA and net
profit respectively over the same period.
Capacity: We have successfully completed brownfield expansions for 4.50 msm of high end
polished vitrified tile at Jaxx (JV) . Another JV Cosa has also commissioned 3.00 msm of
polished vitrified tile (soluble salt) capacity .
Respect: We were adjudged ‘Best Managed Company’ in small cap category for the year
2014 by Asiamoney, a financial publication from Euromoney Institutional Investor Group. I
am confident that this appreciation will only propel the team to win more laurels for the
Company over the coming years.
As we gaze at the horizon, we are hopeful that better days are just round the corner. Our
optimism is based on an important reality – the ‘Toilets for all by 2019’ and ‘Houses for all
by 2022’ targets set by hon’able PM which promise incremental offtake of our products
over the medium-term. At Kajaria, we remain committed to make the Government’s vision
a reality.
Investor Update Q2 FY15 / H1 FY 15
Volume Data (consolidated)
5
Production Growth (MSM) - Q2 FY15
Sales Growth (MSM) – Q2 FY15
Production Growth (MSM) - H1 FY15
Sales Growth (MSM) – H1 FY15
7.16 7.58
3.68 4.14
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
Q2 FY14 Q2 FY15Own Manufacturing JVs
10.84 11.27
13.26 15.05
7.13
8.04
0.00
5.00
10.00
15.00
20.00
25.00
H1 FY14 H1 FY15Own Manufacturing JVs
20.38
23.09
7.08 7.51
3.69 3.77
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
Q2 FY14 Q2 FY15
Own Manufacturing JVs Outsource/Imports
13.35 14.30
2.58 3.02
13.22 14.65
6.99 7.61
0.00
5.00
10.00
15.00
20.00
25.00
30.00
H1 FY14 H1 FY15
Own Manufacturing JVs Outsource/Imports
25.49 28.30
5.27 6.04
Investor Update Q2 FY15 / H1 FY 15
Revenue Growth
R e v e n u e G r o w t h - Consolidated
Refer Slide 14 for detailed Income Statement 6
Rs. / Crores
240.23 283.34
125.05
150.49
0.00
100.00
200.00
300.00
400.00
500.00
600.00
Q2 FY14 Q2 FY15
Outsourcing/Imports
JVs
Own Manufacturing
463.32
537.70
98.04
103.87
445.00
538.73
237.01
294.80
0.00
200.00
400.00
600.00
800.00
1000.00
1200.00
H1 FY14 H1 FY15
Outsourcing/Imports
JVs
Own Manufacturing
887.44
1040.63
205.43
207.10
Investor Update Q2 FY15 / H1 FY 15
Profitability
P A T G r o w t h - Consolidated
Refer Slide 14 for detailed Income Statement 7
Rs. / Crores
26.92
39.75
10
15
20
25
30
35
40
Q2 FY14 Q2 FY15
52.72
78.33
20
30
40
50
60
70
80
H1 FY14 H1 FY15
Investor Update Q2 FY15 / H1 FY 15
EBIDTA / EBIDTA Margin – quarterly progression
Rs./ Crores
8
54.29
59.42
72.10
66.49
69.53
67.55 68.08
86.48
81.42 82.74
11.46%
13.64% 13.49%
13.00% 12.76%
14.58%
15.93% 16.51%
16.19%
15.39%
10.00%
12.00%
14.00%
16.00%
18.00%
20.00%
35
40
45
50
55
60
65
70
75
80
85
Q2FY14 Q3FY14 Q4FY14 Q1FY15 Q2FY15
Standalone Consolidated Standalone Consolidated
Investor Update Q2 FY15 / H1 FY 15
Key Ratios…………
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0.86
0.61
0.17 0.10
0.96
0.82
0.41
0.32
0.05
0.30
0.55
0.80
1.05
Mar-12 Mar-13 Mar-14 Sep-14
Debt Equity (X)
Standalone Consolidated
242
216
89
57
278
320
236
207
30
80
130
180
230
280
330
Mar-12 Mar-13 Mar-14 Sep-14
Debt (Rs. Crore)
Standalone Consolidated
Investor Update Q2 FY15 / H1 FY 15
10
# Capex creditors not considered in working capital cycle.
* ROE for as on 30th Sep. 14 taken at average net worth as on 31st Mar. 14 and 30th Sep. 14 and Q2 FY15 PAT.
27 27
25
28
32 32
25
22
18.00
23.00
28.00
33.00
38.00
43.00
Mar-12 Mar-13 Mar-14 Sep-14
Working Capital Cycle (days)
Standalone Consolidated
32.00
31.49
26.70
27.23
32.06 32.51
27.91 27.58
20.00
22.00
24.00
26.00
28.00
30.00
32.00
34.00
Mar-12 Mar-13 Mar-14 Sep-14
Return on Equity (Avg.)
Standalone Consolidated
Investor Update Q2 FY15 / H1 FY 15
Ongoing Expansion (Standalone)
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A. Greenfield Project (Rajasthan)
In the Board Meeting dated 7th May 2014 the company decided to put up 5 MSM annual capacity
of polished vitrified tiles at a new location in Rajasthan. The project is expected to be completed
by June 2015.
B. Brownfield Project (Rajasthan)
Also, the company, in the Board Meeting dated 1st August 2014 decided to put a brownfield
facility at its existing location in Rajasthan for production of 3 MSM Capacity of ceramic wall tiles.
The production is expected to commence by March 2015.
Investor Update Q2 FY15 / H1 FY 15
A. SORISO CERAMICS Acquired 51% stake in Soriso Ceramic Pvt Ltd, based in Morbi, Gujarat in February
2011 with an annual capacity of 2.30 MSM of ceramic floor tiles. Further expanded the capacity to 4.60 MSM. Production for enhanced capacity started in March 2012. Soriso has operated at 96% capacity in Q2FY15.
B. JAXX VITRIFIED Acquired 51% stake (now 61%) in Jaxx Vitrified Pvt Ltd, based in Morbi, Gujarat in
February 2012, with an annual capacity of 3.10 MSM. Production has commenced inMarch 2012. Jaxx has acquired another plant with a 2.6 MSM annual capacity ofpolished vitrified tile in April 2013 in Morbi making the total capacity of Jaxx to 5.70MSM per annum. Jaxx has operated at full capacity. The commercial production inrespect of brown field expansion of 4.50 MSM polished vitrified tile capacity has commenced production on 6th Sep. 2014. We expect this plant to attain full capacity utilisation during the next quarter.
C. VENNAR CERAMICS Acquired 51% stake in Vennar Ceramics Ltd, based in Vijayawada, Andhra Pradesh in
April 2012, with an annual capacity of 2.30 MSM of high end ceramic wall tiles. Production has commenced on the 1st July, 2012. Vennar has operated at full capacity in Q2FY15.
D. COSA CERAMICS Acquired 51% stake in Cosa Ceramics Pvt. Ltd., based in Morbi, Gujarat – on 16th
Oct.’12, with an annual production capacity of 2.70 MSM of polished vitrified tiles. COSA has operated at full capacity in Q2FY15. The commercial production in respect of brown field expansion of 3.00 MSM polished vitrified tile capacity has commenced production on 29th Sep. 2014 which is expected to attain full capacity utilisation during the next quarter.
Joint Ventures / Subsidiaries
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Investor Update Q2 FY15 / H1 FY 15
13
Joint Ventures / Subsidiaries
E. TAURUS TILES The Company has entered into another JV, Taurus Tiles Pvt. Ltd., Which is putting up an 5 MSM polished vitrified tile capacity at Morbi (Gujarat). Kajaria owns 51% equity in Taurus. The production is expected to commence by Q4FY15.
F. KAJARIA BATHWARE (P) LTD. (KBL) a) Sanitaryware: Kajaria Sanitaryware (P) Ltd., in which KBL holds majority shares, has started the production of sanitaryware on 6th April 2014. However, the production has started momentum in October 2014. We hope to achieve full production in Q4FY15.
b) Faucet:The Company has initiated putting up a faucet plant of 1.50 million pieces facility at Gailpur (Rajasthan) at a cost of Rs. 50 crore. The civil work is in progress. The project is expected to commence operation in Q1FY16.
Investor Update Q2 FY15 / H1 FY 15
Income Statement
Financial highlights (Rs in Crore)
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Q2FY15 Q2FY14 Growth H1FY15 H1FY14 Growth
Standalone Consolidated Standalone Consolidated Standalone Consolidated Standalone Consolidated Standalone Consolidated Standalone Consolidated
Gross Sales 582.37 591.40 505.19 509.81 15% 16% 1128.08 1145.42 964.65 974.60 17% 18%
Net Sales 544.80 537.70 473.93 463.32 15% 16% 1056.36 1040.63 906.56 887.44 17% 17%
EBIDTA 69.53 82.74 54.29 67.55 28% 22% 136.02 164.17 108.03 132.44 26% 24%
EBIDTA MARGIN 12.76% 15.39% 11.46% 14.58% 12.88% 15.78% 11.92% 14.92%
Interest 2.42 8.41 7.80 11.40 -69% -26% 4.81 15.97 16.21 23.14 -70% -31%
Depreciation 10.27 13.54 9.10 11.74 13% 15% 20.13 26.21 18.08 23.23 11% 13%
Profit Before Tax 56.84 60.79 37.39 44.41 52% 37% 111.08 121.99 73.74 86.07 51% 42%
Tax 17.62 19.29 12.81 15.25 38% 27% 35.52 39.79 25.17 29.41 41% 35%
Minority Interest - 1.75 - 2.24 - - - 3.87 - 3.94 - -
Cash Profit 49.49 53.29 33.68 38.66 47% 38% 95.69 104.54 66.65 75.95 44% 38%
Profit After Tax 39.22 39.75 24.58 26.92 60% 48% 75.56 78.33 48.57 52.72 56% 49%
Equity 15.12 15.12 14.72 14.72 15.12 15.12 14.72 14.72
EPS (Basic) (Rs) 5.19 5.26 3.34 3.66 55% 44% 10.00 10.36 6.60 7.16 52% 45%
Investor Update Q2 FY15 / H1 FY 15
Shareholding Pattern
As on 30th Sep 2014
Equity Shares Outstanding – 75.58 millions
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Promoters
52.09% FIs / FIIs / Mutual
Funds
30.66%
NRI's
0.91%
Public / Others
16.34%
The Board in its meeting held on 27th October 2014 has allotted 3885420 equity shares of Rs 2/- each @ Rs. 257.37 per equity shares
(including premium of Rs. 255.37 per shares) on preferential basis to WestBridge Crossover Fund.
Investor Update Q2 FY15 / H1 FY 15
About Us
Kajaria Ceramics is the largest manufacturer of ceramic/vitrified tiles in India. It
has an annual capacity of 54.10 mn. sq. meters presently, distributed across
seven plants - one in Sikandrabad (UP), one in Gailpur (Raj.), four in Morbi (Guj.)
and one in Vijaywada (AP).
Kajaria is the only Indian ceramic tile company awarded with ‘Superbrand’ status
for seventh consecutive time.
For further information, please visit www.kajariaceramics.com or contact:
Mr. Sanjeev Agarwal
Sr. Vice President (Finance & Corporate Strategy)
+91 11 26946409 (Board), +91 11 26972936 (Direct)
Email: [email protected]
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