KAJARIA CERAMICS - RESULTS FOR - Q2 FY 2013 - SEP,2012 - NET SALES UP 23%; NET PROFIT UP 38% YoY

KAJARIA CERAMICS

RESULTS FOR Q2 FY 2013

SEP,2012

The following  table furnishes the stand alone and consolidated Results for Q2 FY 13 ending Sep, 2013 compared with Q2 FY 12 (corresponding Qtr of previous year and gives the Growth percentages.

Net Sales on consolidated Basis has grown 23%, while the same has grown by 21% on stand alone Basis.

EBITDA Margin on consolidated basis has improved to 15.58% this year from 15.25% last year.

Profit After Tax on consolidated basis has grown by a good38%; while the same has grown by 42% on stand alone basis.

EPS on Consolidated basis stands at  Rs.3.61 compared to Rs.2.62 last year, same qtr.

Kajaria has thus improved its performance very well over the last one year.

QUARTERLY PERFORMANCE TABLE

kajaria Ceramics	Q2FY13				Q2FY12		Growth
			S.A.	Consol	S.A.	Consol	S.A.	Consol
Gross Sales	414.27			419.65	337.02	337.99	23%	24%
Net Sales			383.99	388.74	316.38	317.28	21%	23%
EBIDTA			56.86	60.57	46.66	48.38	22%	25%
EBIDTAMargin	14.81%			15.58%	14.75%	15.25%
Interest			7.29	9.88	10.47	10.86	-30%	-9%
Depreciation	10.63			12.27	8.82	9.12	21%	35%
ProfitBef.Tax	38.94			38.42	27.37	28.4	42%	35%
Tax			12.12	12.12	8.47	8.8	43%	38%
Minority Intt	-			0.24	-	-0.34	-	-
Cash Profit	37.45			38.81	27.72	28.38	35%	37%
ProfitAfter Tax	26.82			26.54	18.9	19.26	42%	38%
Equity			14.72	14.72	14.72	14.72
EPS (Rs)			3.65	3.61	2.57	2.62	42%	38%

The following table presents Kajaria’s results for the Half year upto Sep,2012, compared to same period last year. The performance shows, Net profit has increased by 34% over last year on consolidated basis.

The company is improving its installed capacity through acquisitions route also significantly – as can be seen below :

kajaria Ceramics	H1 FY 13				H1 FY 12		Growth
			S.A.l	Consol	S.A.	Consol	S.A.	Consol
Gross Sales	795.41			804.37	624.29	626.99	27%	28%
Net Sales			736.86	744.78	586.15	588.59	26%	27%
EBIDTA			110.75	117.12	88.53	91.68	25%	28%
EBIDTAMargin	15.03%			15.73%	15.10%	15.58%
Interest			19.35	23.32	19.22	19.95	1%	17%
Depreciation	20.3			22.96	17.55	18.15	16%	27%
ProfitBef.Tax	71.1			70.84	51.76	53.58	37%	32%
Tax			22.09	22.21	16.03	16.62	38%	34%
Minority Intt	-			0.16	-	-0.63	-	-
Cash Profit	69.31			71.75	53.28	54.48	30%	32%
ProfitAfter Tax	49.01			48.79	35.73	36.33	37%	34%
Equity			14.72	14.72	14.72	14.72
EPS (Rs)			6.66	6.63	4.86	4.94	37%	34%

CHAIRMAN’S MESSAGE :

An increasing number of Indians have the Affordability and Aspiration to upgrade to their lifestyles, than ever before, especially when it comes to do their homes. We only ensured the Availability that we are there at the right time at the right place, with the right product – pan India – to  satiate their appetite.

This simple philosophy resulted in a 28%* topline  growth complimented by a 34%* growth in the bottomline during the H1 FY13 as compared to the corresponding period of the previous year. This gives us the confidence of achieving our initial guidance of 20-25% topline growth in FY 13.

The start of production of high end digital ceramic wall tiles at Vennar Ceramics, Vijaywada and our recent acquisition of a fourth unit – a newly set up 2.70 MSM of vitrified tile facility at Morbi, Gujarat should help in achieving the targeted growth

ACQUISITIONS :

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 72% capacity in H1 FY13 due to maintenance shut down taken in the 1st half year. We expect SORISO to operate at almost full capacity in 2nd half of the year.

B.     JAXX VITRIFIED

Acquired 51% stake in Jaxx Vitrified Pvt Ltd, based in Morbi, Gujarat in February 2012, with an annual capacity of 3.10 MSM.    Production has commenced in March 2012. Jaxx has operated at 84% capacity in H1 FY13. We expect the utilisation to improve in the 2nd half of the year.

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 1^st July, 2012. Vennar has operated at 83% annualised capacity in H1 FY13. We expect VENNAR to operate at almost full capacity in the 2nd half of the year.

C. COSA CERAMICS

        Acquired 51% stake in Cosa Ceramics Pvt. Ltd., based in Morbi, Gujarat – on 16^th         Oct.’12, with an annual production capacity of 2.70 MSM of polished vitrified tiles.

ABOUT KAJARIA CERAMICS:

Kajaria Ceramics is the largest manufacturer of ceramic/vitrified tiles in India. It has an annual capacity of 41.00 mn. sq. meters, distributed across six plants - one in Sikandrabad (UP), one in Gailpur (Raj.), three in Morbi (Guj.) and one in Vijaywada (AP).

Kajaria is the most certified ceramic tile company in the world and the only Indian ceramic tile company awarded ‘Superbrand’ status for sixth consecutive time.

 *  *  *  E  N  D  *  *  *