Kajaria Ceramics concall was today at 5:30 PM
"Growth of about 20-25% coming ahead."
Here are the key highlights of the call ππ
"Growth of about 20-25% coming ahead."
Here are the key highlights of the call ππ
Business Update:
β’ Business has been reveamped and seen good growth.
β’ Tier 2 and Tier3 has seen good growth.
β’ Q3 turned out to be more than what we expected.
β’ EBIDTA Margins attained a new higher.
β’ Business has been reveamped and seen good growth.
β’ Tier 2 and Tier3 has seen good growth.
β’ Q3 turned out to be more than what we expected.
β’ EBIDTA Margins attained a new higher.
Gas Price:
β’ Remained same than that of past quarter. Avg Price in Northern India is 25-26 price, which was 30-31 last year
β’ Out of this around 50% of this price is for long term
Segment:
Bathware & Sanitary is already CF +. Ply will take more 2 year for generating cash flow.
β’ Remained same than that of past quarter. Avg Price in Northern India is 25-26 price, which was 30-31 last year
β’ Out of this around 50% of this price is for long term
Segment:
Bathware & Sanitary is already CF +. Ply will take more 2 year for generating cash flow.
Month wise Demand:
β’ Every month the demand is positive. In macros mgmt is looking for 20-25% of volume growth for tiles division for the next year.
β’ Metros has bring good demand which is cool off now
β’ Every month the demand is positive. In macros mgmt is looking for 20-25% of volume growth for tiles division for the next year.
β’ Metros has bring good demand which is cool off now
Sales Diversification:
β’ Retail: Institutional Sales has ratio of 80:20.
β’ Out of the institutional sales 50% is the sales to government where payment is there on time while rest is to the infrastructure projects where realisation is very hard and payment is a concern as well
β’ Retail: Institutional Sales has ratio of 80:20.
β’ Out of the institutional sales 50% is the sales to government where payment is there on time while rest is to the infrastructure projects where realisation is very hard and payment is a concern as well
Export:
β’ Export was low in the first 2 quarter. But from December export sales is picking up. December quarter company did sales of 7300 crores and this quarter company think of 12500 crores.
β’ However margins of the export is very low with respect to domestic.
β’ Export was low in the first 2 quarter. But from December export sales is picking up. December quarter company did sales of 7300 crores and this quarter company think of 12500 crores.
β’ However margins of the export is very low with respect to domestic.
β’ Demand of export sales is very high because America ban on China and many countries has put export ban on china which made good business for India as well.
β’ Mgmt expects next year export sales to grow at 20-25%
β’ Mgmt expects next year export sales to grow at 20-25%
Margins:
β’ Price of Paper and Boxes have gone up, which may impact margins in next quarter
β’ Company has two chance to increase the price or cut the distributor cost.
β’ Company will make combination of choice expects margin to stay at ~20%.
Conti
β’ Price of Paper and Boxes have gone up, which may impact margins in next quarter
β’ Company has two chance to increase the price or cut the distributor cost.
β’ Company will make combination of choice expects margin to stay at ~20%.
Conti
β’ Price increase have been 6-9%, because of value added produce and increase in the margins of the entire industry.
β’ Price has been increased in Jan month only.
β’ Entire industry has seen price margins growth which is double digit growth and was single digit last year.
Conti
β’ Price has been increased in Jan month only.
β’ Entire industry has seen price margins growth which is double digit growth and was single digit last year.
Conti
β’ Company this year had cut down the advertisement cost to be around 50%, which will be increased this year a bit.
β’ Subsidiaries have started making profit. Especially the profit of Bathware which was negative since past has now making profit of around 15-20 crores.
β’ Subsidiaries have started making profit. Especially the profit of Bathware which was negative since past has now making profit of around 15-20 crores.
Capex:
β’ This year is 50-60 crores.
β’ Next year it would be 150-200 crores.
β’ This will not green field expansion and the next year expansion will be on the existing facility in order to increase the capacity of the exiting plant.
β’ No existing free capacity available now
β’ This year is 50-60 crores.
β’ Next year it would be 150-200 crores.
β’ This will not green field expansion and the next year expansion will be on the existing facility in order to increase the capacity of the exiting plant.
β’ No existing free capacity available now
Growth Driver:
β’ Great amount of sales is been denominated from the building infrastructure.
β’ Bathware segment: Segment have good profit in line and now the customer have started accepting the price and the product and company expects this to remain the same.
Conti
β’ Great amount of sales is been denominated from the building infrastructure.
β’ Bathware segment: Segment have good profit in line and now the customer have started accepting the price and the product and company expects this to remain the same.
Conti
β’ Management expects to deliver sales to the Lok Sabha constituency which will be next growth driver.
Industry:
β’ Market have only seen growth in the past 3 months, while before that industry was not growing and we have grown more than the market
Industry:
β’ Market have only seen growth in the past 3 months, while before that industry was not growing and we have grown more than the market
Bathware:
β’ There is increase in more than 30 crores from 190 crores sales this year despite being closed for 3 months.
β’ Price of the raw material has been increased which will further passed on this customer from this year.
β’ Even Cera and Jaguar has also increased the price
β’ There is increase in more than 30 crores from 190 crores sales this year despite being closed for 3 months.
β’ Price of the raw material has been increased which will further passed on this customer from this year.
β’ Even Cera and Jaguar has also increased the price
β’ Almost 50-60 new plants are coming, out of which 40 are for GBT and only for exports.
β’ Management is already increased 100 lines for this export.
β’ Asian Granito has sales in export and company is already looking for domestic and export.
β’ Management is already increased 100 lines for this export.
β’ Asian Granito has sales in export and company is already looking for domestic and export.
Price Increase:
β’ It is not easy to increase the price of tiles, as the covid theme as not eliminated and you cannot increase the price else it would be difficult for the sales.
β’ However company has hardened the price.
β’ It is not easy to increase the price of tiles, as the covid theme as not eliminated and you cannot increase the price else it would be difficult for the sales.
β’ However company has hardened the price.
Subsidiaries Performance:
- Jax in profit
- Bathware is also profit and is postivite.
- Kosa is slight loss making but will turned positive soon.
- Vennar is loss making which we have already mentioned as the team over there is establishing strategies.
- Jax in profit
- Bathware is also profit and is postivite.
- Kosa is slight loss making but will turned positive soon.
- Vennar is loss making which we have already mentioned as the team over there is establishing strategies.
Dividend Policy-
Dividend Policy has been changed to 40% of Net Profit which was 20-25% as mentioned.
Plywood:
Ply wood is highly unorganised sector. With the 18% GST coming, mgmt expect a good amount of market from the unrogansied market and is expecting to deliver good growth
Dividend Policy has been changed to 40% of Net Profit which was 20-25% as mentioned.
Plywood:
Ply wood is highly unorganised sector. With the 18% GST coming, mgmt expect a good amount of market from the unrogansied market and is expecting to deliver good growth
Conclusion:
β’ There is good amount of growth coming in the future year.
β’ Mgmt expect next 2 year to grow volumes at 20-25%, subsequent to that 15%.
β’ There has been improvement in WC cycle.
β’ Price of raw material have gone up but have little impact.
β’ There is good amount of growth coming in the future year.
β’ Mgmt expect next 2 year to grow volumes at 20-25%, subsequent to that 15%.
β’ There has been improvement in WC cycle.
β’ Price of raw material have gone up but have little impact.
β’ β’ β’
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