Thread by @TYMFinance

Kajaria Ceramics conducted the conference call for Q3: FY22

"Guidance for 15% volume growth & with price rise Revenue growth target of 20-22% for FY23"

Here are the conference call highlights.
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Business Updates:

• Tiles market has moved up well, with growth coming in all the region, while re-modeling & re-construction market is picking up in urban metros.
• Rising Gas cost & pre-payment mechanism impacting business in Gujarat.
• Power & Fuel cost increased by 92cr.

Industry Updates:

• Lots of turmoil going in the industry due to rise in gas price & implementation of NGO's
• Exports have gone down from 1100 to 550cr due to container problem.
• Container prices are going to the roof.
• However on demand side, worst time is over.

Business Segment:

• Bathware sales increase from 67cr to 82cr. Monthly sales run rate is 30cr.
• Plywood sales increase from 13cr to 25cr.
• Sanitary ware with investment of 70-80cr, expected revenue is 150-160cr.
• Faucetware CAPEX of 5-6cr, would lead revenue of 40-50cr.

Margins:

• Margins impacted due to increase in fuel cost.
• Kajaria has taken price rise in April, July, Oct & Nov. Through this price rise has been done ~6-7%. Price rise is also taken in Jan, which will be visible in Q3.

Raw Materials:

• North Price is rising by 2-3% every month. Increased by 10-12% in a quarter.
• Morbi price increase to 40 to 62rs.
• Gas price of entire Kajaria is 46.5Rs.

Expansion:

• Commercial production in Jaxx is MArch 22
• Srikalahsti & Gailpur Plant is delayed a bit due to covid.
• Expansion will be done every year in order to sustain the growth
• Slab Plant (210cr) for expanding machine- 5Mil sq. mt. (For more 5Mil sq. mt- 120cr spend)

Other:

• Working Capital days increase from 56 to 58 days.
• All the capacity is running at ~100%.
• Focus remains on increasing retail sale and increase the advertisement expense.
• Acquisition was explored but got no good opportunities.