Cera Sanitaryware Ltd.
Q4FY23 Quarterly & FY23 Annual Result Announced for Cera Sanitaryware Ltd.
Furniture-Furnishing-Paints company Cera Sanitaryware announced Q4FY23 & FY23 results:
- Q4FY23 vs Q4FY22:
- Revenue from operations (net of taxes): Rs 5,304 million vs Rs 4,387 million, up 20.9%
- EBITDA (excluding other income): Rs 851 million vs Rs 824 million, up 3.3%
- % of sales: 16.0% vs 18.8%, down 280 bps
- PAT: Rs 629 million vs Rs 521 million, up 20.7%
- % of sales: 11.9% vs 11.9%, 0 bps YoY
- EPS diluted: Rs 48.39 vs Rs 40.04, up 20.7%
- FY23 vs FY22:
- Revenue from operations (net of taxes): Rs 17,962 million vs Rs 14,418 million, up 24.6%
- EBITDA (excluding other income): Rs 2,851 million vs Rs 2,212 million, up 28.9%
- % of sales: 15.9% vs 15.3%, up 60 bps
- PAT: Rs 2,097 million vs Rs 1,494 million, up 40.4%
- % of sales: 11.7% vs 10.4%, up 130 bps
- EPS diluted: Rs 161.20 vs Rs 114.84, up 40.4%
Commenting on the performance, Vikram Somany, Chairman & Managing Director, said, “We are pleased to report our best ever quarterly performance in Q4FY23 with revenues of Rs 530 crore and PAT of Rs 63 crore. For FY23 the topline was Rs 1,796 crore an increase of 24.6% over FY22’s topline of Rs 1,442 crore. EBITDA for FY23 was Rs 323 crore an increase of 32% over FY22’s EBITDA of Rs 244 crore. Profit after tax for FY23 was Rs 210 crore an increase of 41% over FY22 at 149 crore. ROCE has increased from 19.64% to 23.13% an increase of 18%. This has been achieved even though Rs 687 crore has been parked in safe instruments yielding lower returns. Our sanitaryware and faucet ware divisions, which made up 53% and 35% of our Q4FY23 revenue respectively, registered 18% and 29% revenue growth respectively, on a y-o-y basis.
We have focused on driving an improved product mix with new products comprising products launched over the last 3 years representing 34% of the turnover in Q4FY23. Efforts to improve productivity at our plants combined with cost optimization measures have elevated our EBITDA margin in a sustainable manner.
Further, we have made considerable progress on initiatives to further solidify our business performance. Our retailer loyalty program has made considerable progress with over 1.46 lakh invoices uploaded by over 14,600 retailers providing CERA with rich data and insights into end consumer buying patterns. Cash and cash equivalents were Rs 687 crore as of March 31, 2023.
As earnings have grown, the Board of Directors has recommended an increased dividend of Rs 50 per share which equates to 1000% of face value. This is higher than the combined dividend of Rs 35 per share, equating to 700% of the face value distributed in FY22.
Looking ahead, we are confident that our diverse product offerings, extensive distribution network, well-established brand recognition, strong financial standing, and expansion plans will enable us to achieve sustained growth in our key business segments.
We are also pleased to report that the company made notable progress in expanding the production capabilities of its faucet ware division. We are confident that our faucet ware capacity expansion project will be completed well on schedule. Progress was made in the due diligence for a suitable land parcel for the new Sanitaryware facility.”