CERA SANITARYWARE LIMITED = RESULTS = FOR Q4 FY 2011 = GOOD PROGRESS = GOOD EXPANSION PLANS

Cera Sanitaryware Limited

NSE Symbol        CERA

CERA SANITARYWARE LIMITED  has declared its results for the 4^th qtr ending March 2011.

Net Sales has increased to Rs.75.47 cr  - up by 26.24% from the previous qtr of Q3 FY 11 and up by 29.1% from the corresponding qtr of Q4 FY 10.

Total Expenditure Has however increased more than proportionately to Rs.64.96 cr – up by 32.6% fromQ3 FY 11 and by 32.55% from Q4 FY 10.

Profit from Operations stands at Rs.10.51 cr; down by 2.62% from Previous qtr of Q3 FY 10; but up by 11.25% from Q4 FY 10.

Profit before tax is Rs.12.27 cr -  up by 13.21% from previous qtr and up by 30.94% from Q4 FY 10.

Net Profit is Rs.8.20 cr – up by 13.26% from Q3 FY 10; and up by a good 32.53% from Q4 FY 10.

Paid Up Equity has increased to Rs.6.33 cr – from Q4 FY 10 equity of  Rs.3.14 cr due to a Bonus issue in the ratio of 1 : 1.

On a Face Value of Rs.5/- , Basic EPS stands at Rs.6.48 on the bonus-enhanced equity – against Rs.5.72 in Q3 FY 10 – and  against Rs.9.86 in Q4 FY 10, the last being on pre-bonus lower equity.

The annualized EPS (Q4 EPS x 4) of Rs.Rs.26 yields a PE Ratio of 7.35 on the current MP of Rs.191.

The company is having good expansion Plans. Considering its present and future plans, CERA seems to be a good buy for Medium / long term investors.

RESULTS TABLE :

cera sanitary	31-Mar-11	31-Dec-10	31-Mar-10
Net Sales	7547.19	5978.51	5845.86
Increase in SIT / WIP	-167.45	-567.96	-100.24
Raw Materials	1212.06	773.63	594.22
Traded Goods	2328.55	2262.59	1862.18
Employees Cost	923.72	768.52	755.93
Depreciation	185.19	151.77	160.87
Other Expenditure	2013.87	1510.45	1627.93
Total Expenditure	6495.94	4899	4900.89
Total Expenditure	6495.94	32.6	32.55
Profit from Operations	1051.25	1079.51	944.97
Profit from Operations	1051.25	-2.62	11.25
Other Income	247.79	80.41	43.39
Interest	72	76.02	51.28
Profit before tax	1227.04	1083.9	937.08
Profit before tax	1227.04	13.21	30.94
Tax expense	407.21	360.07	318.49
Net Profit	819.83	723.83	618.59
Net Profit	819.83	13.26	32.53
Face Value (In Rs	5	5	5
Paid Up Equity	632.74	632.74	314.49
Basic EPS	6.48	5.72	9.86
Public holding (%)	45	46.3	45.98

ANNOUNCEMENTS

TO NSE

28-09-2010        production has commenced at the Company's Faucetsware Plant at the land adjacent to 9, G.I.D.C., Industrial Estate, Kadi, Dist, Mehsana (North Gujarat).

08-09-2010        the Board of Directors at its meeting held on September 06, 2010, has allotted 63,27,437 Equity Shares as Bonus Shares in the ratio of 1:1 to the members of the Company, the Record Date for the same was fixed as September 03, 2010.

16-07-2010        Board of Directors at their meeting held on July 16, 2010 has decided to undertake expansion and development of business shortly as under: 1) The company is exploring the possibility of registration of CERA brand or any other new brand for the development of business in Europe. The company may also consider acquisition of the existing brand or acquisition of any existing company in Europe. The above may depend upon the global business environment and more particularly the European business conditions. 2) The company is also actively considering the expansion of existing Sanitaryware capacity from 2 million to 2.7 million pieces at its present plant located at 9, GIDC Industrial Estate, Kadi. The approximate cost for the expansion is estimated at Rs.40 crores. The expansion of capacity may be undertaken immediately. 3) Faucetsware plant of the company will be operational by September, 2010. The company is also actively considering for doubling the capacity of its production from 2500 pieces to 5000 pieces per day at its Faucetsware plant at Kadi, Dist. Mehsana. The approximate cost for the said capacity increase is Rs. 18 crores. 4) The company is also planning for setting up of new Research & Development Centre and Display Centre, costing approximately Rs. 1 crore. 5) The company is also planning construction of new Fire Clay Plant entailing production of large Wash Basin which cannot be produced by ordinary raw materials. The approximate cost of the said plant is Rs. 3 crores.

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