Tiles market picking up well due to higher construction in various geographies
Higher Gas Cost are hitting the business & Industry has not grown due to it.
Plywood Segment :
Revenue from plywood segment increased from 13 cr to 25 cr
FY 21 Revenue - 39 Cr
FY 22 Expectation from plywood segment : 70-75 cr
FY 24 - 180 to 190 Cr
Power & Fuel Cost affected the EBITDA Margins. Currently EBITDA Margins are at 17.21% vs 21.68% (Q321) vs 18.54% (Q2 22)
Working capital days increased from 56D to 58D
Exports got impacted due to container prices
Current Capacity Utilization : 95% to 100%
Expansions (all brownfiled) 1. Jaxx at Morbi : March 2022 2. Srikalahasti : April 2022 3. Gailpur : April 2022 4. Also adding 5 million sq. meter slab manufacturing in gujarat with 210 cr, which is expected to come by march 2023.
Currently kajaria was outsourcing but now Putting up the high end machinery. Revenue from this capex would be around 400 cr. As this capex is greenfield so costs are high but to add additional capacity of 5 million sq. meter capacity as brownfield expansion cost will be 150 cr.
Additional Expansions in bathing segment 1. Gilpur - 6 lakh pieces with 5 cr capex (Brownfield) - Revenue potential 50-60 cr 2. Gujarat - 7 Lakh pieces with 80 cr capex (Greenfield) - Revenue potential of 160 cr
Gas Prices and Price Hikes :
Gas Prices Trends : 1. 23rd aug - 36 Rs 2. 24th aug - 40 Rs 3. 4th Oct - 50 Rs 4. 1st Nov - 62 Rs
Cumulative gas costs at Rs 46.5 (Q3 22) vs 36.5 (Q2 22) and it's a tough time but they have taken the price hikes of about 9 to 10% cumulative till now
Till now not able to pass on the prices fully. It will be seen in Jan, Feb. In Q3 22 there was about 5% price hike. Kajaria able to absorb 600 to 650 bps due to price hikes.
Guidance : 1. 15% volume growth CAGR for next 3 years 2. adding 12 million sq. meter capacity (brownfield)
3. Next year adding 5 million meter slab manufacturing 4. Next year revenue growth will be 20-22% due to price increase. 5. Every year capex : 250 cr to 300 cr for next 2-3 years
Last year sanitary ware revenue : 200 cr vs this year 45-50% growth expected.
Margins will increase as value added products will increase in sanitary ware segment. Margins in value added products in sanitary ware are higher compared to tiles. But first it should reach to critical mass then operating leverage will start.
Not setting up the plant in north India because raw materials are not available. Morbi is well located region which can supply to entire country.
Freight Cost Increase :
1. America : It used to be $4,000-$5,000 (20 feet container) now it's $15,000
2. Dubai : It used to be $200 now it's $1200
Work from home :
Investment bankers, auditors, financial sector employees are still working from home. Demand for larger size homes in increasing and they are also refurbishing their homes which was not done
earlier due to which demand for tiles also increasing.
Dealer Details :
Currently total dealers: 1700
Exclusive kajaria showrooms: 380
In last 9 months added 50 new showrooms
Advertising cost
This year advertising budget is 75 cr out of which 49 cr is spent in first 9 months.
Kajaria will be increasing the advertising budget next year.
Geography wise demand :
New construction happening in : Lakhnau, Pune, Chandigarh (Tier 1, Tier 2, Tier 3, Middle Cities). Very Robust Demand
Renovation Market : Metro cities (Delhi, Mumbai, Kolkata)
Tile manufacturing industry situation is not great right now due to gas price increase. Industry will getting the benefits as gas prices will get stabilized as they won't be passing the benefits immediately.
Kajaria wanted to have latest machinery so they are not going to acquire old plant due to old machineries.
Kajaria will be starting a showroom in dubai with local player to expand into gulf regions.
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Why 🎵 music labels is unique business model ? @NeilBahal
Watch the video !
Link :
1. High Entry Barriers
It's not easy to create catalogue of 1 Lk songs in short time. Each movie will have 4-5 songs and in a year about 100 movies might be released,
so about 500 songs will be produced in a year. To create catalogue of 25000 songs it will need 50 years. Industry will keep consolidating, as bigger players will acquire the smaller music labels.
2. Get the acquisition costs recovered in 3-5 years and keep the content with you for lifetime without any incremental costs.
Keyword : Without incremental costs
1. Revenues for the quarter stood at ₹428.4Cr, up 104% from same period previous year
2. EBITDA stood at ₹46.7 Cr translating to EBITDA margins of 10.9%
3. PAT stood at ₹22.5 Cr with PAT margins of 5.3%
4. Undertaking price hikes wherever possible to offset these raw material pressures.
5. This is the first full quarter of consolidation of recent acquisitions of Unitop and Tristar in Rossari’s performance. Both these companies delivered growth during the period, which assisted overall performance.
1. They were the fastest growing company among the Top 30 companies in the domestic formulations market as per IQVIA. JB grew at 27% vs market growth of 18%.
2. Revenues for the quarter stood at ₹601 Cr (10% growth YoY).
3. EBITDA excluding ESOP cost stood at ₹153 Cr (10.5% decline YoY). Gross margins for the quarter stood at 66% although there was significant cost inflation.
4. Cost pressure persists on raw material and packing material, which is expected to continue in the medium-term.
5. During Q3 FY22, Domestic Formulations business launched 12 new products including Molnupiravir, Cilacar TM, Azovas-T and Pirfenidone.
Watch the video to understand the business details :
1. Revenues for the quarter stood at ₹358 Cr (4.8% growth YoY).
2. Growth was mainly driven by the Formulations business which grew at 18.5% YoY on a constant currency basis whereas the API business declined by 20% YoY driven by logistic challenges and subdued demand for Albendazole.
3. Growth in the API portfolio excluding Albendazole has been strong in the first 9 months. Albendazole demand still remains subdued but there is a strong recovery in demand QoQ.
1. The revenues for Q3FY22 stood at ₹429.4Cr from ₹310.3 Cr in same period previous year accounting to growth of 38.4% YoY
2. EBITDA for the quarter stood at ₹48.5Cr translating to EBITDA margins of 11.29%
3. The contributors to Consolidated Net Profit after tax of ₹106.02Crore in Q3-FY22 include share of profit of DyStar (associate company of Kiri) to the tune of ₹81.49 Crore, and
₹13.44Crore from Lonsen Kiri Chemical Industries Limited
3. Consolidated Gross Margin has strengthened to 33%, a Q-o-Q increase of 3% which is further expected to improve in coming quarters
1. For Q3FY22 revenue was ₹185.8 Cr vs ₹130.4 Cr in Q3FY21 a growth of 42% on YoY basis.
2. Q3 EBITDA was at ₹30.2 Cr as compared to ₹27.3 Cr in the same quarter of the previous year.
3. For 9M FY22 revenue was ₹446.6 Cr vs ₹330.8 Cr in 9MFY21 a growth of 35% on YoY basis.
4. 9MFY22 EBITDA surged by 141% to ₹79.7 Cr as compared to ₹33.1 Cr in 9MFY21.
5. Esports segment recorded revenue of ₹109.3 Cr in Q3FY22 vs ₹57.8 Cr last year in the same quarter, a growth of 89% YoY basis.
Their Gamified early learning segment recorded revenue of ₹47.2Cr.