CERA SANITARYWARE LTD - RESULTS FOR - Q3 FY 2012-13 - Q/E DEC,2012 - NET SALES UP 55.2% YoY; NET PROFIT UP 51% YoY

CERA SANITARYWARE LIMITED

VIKRAM SOMANI, CHAIRMAN & MD

RESULTS FOR Q3 FY 2012-13 

CERA SANITARYWARE has declared very good results for the third quarter ended December 2012.

Net Sales stands at Rs.128.02 Cr in Q3 FY 13; compared to Rs.111.38 Cr in Q2 FY 13 (+14.94%); and Rs.82.48 Cr in Q3 FY 12 (+55.2%)

Total Expenditure stands at Rs.110.05 Cr in Q3 FY 13; compared to Rs.94.96 Cr in Q2 FY 13 (+15.89%); and Rs.70.71 Cr in Q3 FY 12 (+55.64)

Profit bef. Intt, Dep. & Taxes stands at Rs.17.97 Cr in Q3 FY 13; compared to Rs.16.42 Cr in Q2 FY 13 (+9.42%); and Rs.11.78 Cr in Q3 FY 12 (+  52.58%) 

Net Profit  stands at Rs.12 Cr in Q3 FY 13; compared to Rs.11.03 Cr in Q2 FY 13 (+8.81%); and Rs.7.95 Cr in Q3 FY 12 (+51.04%)

Diluted EPS stands at Rs.9.48 in Q3 FY 13; compared to Rs.8.72 in Q2 FY 13; and Ra.6.28 in Q3 FY 12;

Total Income stands at Rs.128.02 Cr in Q3 FY 13; compared to Rs.111.38 Cr in Q2 FY 13 (+14.94%)

Cost of materials  stands at Rs.17.18 Cr in Q3 FY 13; compared to Rs.18.73 Cr in Q2 FY 13 (-8.28%); and Rs.13.14 Cr in Q3 FY 12 (+30.72%)

Purchases of SIT stands at Rs.42.15 Cr in Q3 FY 13; compared to Rs.41.39 Cr in Q2 FY 13 (+1.84%); and Rs.34.44 Cr in Q3 FY 12 (+22.4%)

Employee expense stands at Rs.14.71 Cr in Q3 FY 13; compared to Rs.13.84 Cr in Q2 FY 13 (+6.34%); and Rs.10.68 Cr in Q3 FY 12 (+37.73%)

Depreciation stands at Rs.2.56 Cr in Q3 FY 13; compared to Rs.2.01 Cr in Q2 FY 13 (+27.79%); and Rs.1.88 Cr in Q3 FY 12 (+36.09%)

Other expenses     stands at Rs.32.82 Cr in Q3 FY 13; compared to Rs.26.43 Cr in Q2 FY 13 (+24.16%); and Rs.21.28 Cr in Q3 FY 12 (+54.25%)

Total expenses stands at s.110.05 Cr in Q3 FY 13; compared to Rs.94.96 Cr in Q2 FY 13 (+15.89%); and Rs.70.71 Cr in Q3 FY 12 (+55.64%)

Profit before tax stands at Rs.17.96 Cr in Q3 FY 13; compared to Rs.16.45 Cr in Q2 FY 13 (+9.21%); and Rs.12.29 Cr in Q3 FY 12 (+46.2%)

Tax Expenses stands at Rs.5.96 Cr in Q3 FY 13; compared to Rs.5.42 Cr in Q2 FY 13 (+10.03%); and Rs.4.34  Cr in Q3 FY 12 (+37.35%)

Net Profit  stands at Rs.12 Cr in Q3 FY 13; compared to Rs.11.03 Cr in Q2 FY 13 (+8.81%); and Rs.7.95 Cr in Q3 FY 12 (+51.04%)

Face Value of Share is Rs.5.

Paid-up Equity  stands at Rs.6.33

Basic EPS stands at Rs.9.48 in Q3 FY 13; compared to Rs.8.72 in Q2 FY 13 and Rs.6.28 in Q3 FY 12. The Annualized EPS is Rs.37.93 against Rs.25.11 only in Q3 FY 12. Thus, the improvement in performance is quite impressive.

Current Market Price is around Rs.427; The 52 week High and Low are Rs.463.80 / 171.35.

The PE Ratio is around 11.26. Thus, there is good scope for price appreciation with each quarterly results.

Public holding  in the company stands at 44.6%

ABOUT THE COMPANY :

Launched in 1980, Cera is a pioneer in the sanitaryware segment in India. The first sanitaryware company to use natural gas, Cera has been on the forefront of launching a versatile colour range and introducing the bath suite concept. It also launched innovative designs and water-saving products. The twin-flush model launched in India by Cera for the first time, reduces the water needs of households considerably. WCs designed to flush in just 4 litres of water is another notable innovation by Cera. Cera has been steadfastly moving towards its mission of becoming a total bathroom solution company.

In 2010, Cera took one more step towards its goal, commissioning its state-of-the-art faucets facility where the focus will only be on new designs & innovation.

Equipped with the latest equipments like fully automatic core shooter, instant induction furnace, channel type furnace with gravity die-casting machine and high tech equipments for endurance testing, high pressure testing, plating thickness testing, faucets facility ensures delivery of quality & consistency of its products.   

Confirming to its tradition of being at the forefront of innovation, in a nationwide consumer survey among 30,000 people conducted by Nielsen, Cera’s Snow White has been voted Product of the Year in the sanitaryware category for 2011.

Based in Kadi, Gujarat, Cera Sanitaryware Ltd. uses International technology, which has ensured Cera’s superiority over others in quality. Established with an initial capacity of 3,600 MTPA, the plant has undergone several periodical upgradations and modernizations to expand to 25,000 MTPA.

To achieve growth in the rapidly changing retail market in the country, Cera, has launched its one of a kind Cera Style Studios in Ahmedabad, Bangalore, Chandigarh, Kolkata, Cochin, Hyderabad and Mumbai. With the opening of the Cera Style Studios, the discerning consumers, architects and interior designers can have full view of the Cera’s premium ranges of WC’s, Wash Basins, Shower Panels, Shower Cubicles, Bath Tubs, Shower Temples, Whirlpools, CP fittings etc. Cera Style Studios will complement its existing network of 600 dealers and 5000 retailers. Several Bathrooms are displayed live, so that the customers can get a feel of Cera’s vast range of products. To increase penetration, along with Style Studio’s, Cera has launched several Cera Style Galleries across the country which are Exclusive Cera Retail Centre. 

Having shown a growth rate of more than 25% for last 3 years, Cera Sanitaryware Ltd. today is the fastest growing sanitaryware company in India.  For its contribution towards the industrial growth, Cera's then ED 'Mr. Vidush Somany' received "The Nirman Ratna Award" in September 2010.

RESULTS TABLE

	IN LACS	Q3FY13	Q2FY13	Q3FY12	9MFY13	9MFY12	FY2012
a)	Gross Sales	13427.8	11624.8	8663.13	34647.9	23165.3	33571.31
	Less : Excise Duty	625.82	486.71	414.65	1656.68	1124.19	1632.34
	Net Sales	12802	11138	8248.48	32991.3	22041.1	31938.97
Total Income		12802	11138	8248.48	32991.3	22041.1	31938.97
Expenses
a)	Cost of materials	1133.72	1300.14	871.03	3861.25	2468.25	4002.06
b)	Purchases of SIT	4215.17	4139.02	3443.77	11047.8	7800.63	11420.82
c)	Changes in inventories of FG, WIP and SIT	62.37	-743.76	-1,071.45	-1,414.82	-1,802.16	-3,499.71
d)	Employee expenses	1471.34	1383.64	1068.31	4182.18	3017.55	4313.32
e)	Depreciation	256.36	200.61	188.37	673.68	565.12	770.52
f)	Power and Fuel	584.01	572.63	443.03	1626.05	1056.27	1571.73
g)	Other expenses	3281.99	2643.38	2127.65	8229.03	5751.74	8794.26
Total expenses		11005	9495.66	7070.71	28205.2	18857.4	27373
Profit from Operations		1797.02	1642.38	1177.77	4786.1	3183.71	4565.97
Other Income		200.43	165.89	162.89	523.97	489.18	684.68
Finance Costs		201.34	163.65	112.17	489.25	266.18	400.57
Profit before tax		1796.11	1644.62	1228.49	4820.82	3406.71	4850.08
Tax expenses		595.99	541.68	433.93	1593.6	1156.93	1646.43
Net Profit		1200.12	1102.94	794.56	3227.22	2249.78	3203.65
OPT Before Exceptional Item		2253.81	2008.88	1529.03	5983.75	4238.01	6021.17
Paid-up equity (F.V Rs. 5/-)		632.74	632.74	632.74	632.74	632.74	632.74
Reserves			---	---		---	13285.35
a)	Basic	9.48	8.72	6.28	25.5	17.78	25.32
b)	Dilluted	9.48	8.72	6.28	25.5	17.78	25.32
c)	Annualised Basic EPS	37.93	34.86	25.11	34	23.7

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