(CMP - Rs. 1267; MCap - Rs. 20,169 crore)
Kajaria Ceramics reported a strong performance on topline front, albeit sharp increase in power costs led to lower margins and muted bottomline YoY.
Q3FY22 Earnings Summary
- The topline was up 27.4% YoY at Rs. 1068.2 crore. Tiles sales volumes were up ~13.5% YoY at 25.6 MSM (higher than estimate of ~10% volume growth). Tiles Revenues were up 26.8% YoY at Rs. 961.6 crore, with pricing growth contributing 11.7% YoY, largely undertaken owing to sharp rise in power costs. Faucet and Sanitaryware revenues were up ~21% YoY at Rs. 81.7 crore. Plywood revenues were up 95% YoY at Rs. 24.9 crore
- The company reported EBITDA of Rs. 183.8 crore (our expectations: EBITDA of Rs. 173.2 crore). The resultant margins at 17.2%, down 447 bps YoY, was lower, owing to high power & fuel costs
- At PAT level, it reported a Rs. 122 crore, up 2.6% YoY
- Working capital was at 58 days vs. (56 days in Q2). The net cash stood at Rs. 338 crore (vs. Rs. 473 crore in Q2)
The growth momentum in volume is better than anticipated, albeit impact of power costs continue to weigh on margins and bottomline. Kajaria with net cash balance sheet and relatively resilient performance given superior brand and leadership is likely to remain a key beneficiary of strong demand offtake, going ahead. However, key will management commentary on gas prices for margins trajectory ahead. We would review our estimates, rating and target price and will be coming out with the detailed update soon after the conference call.
Shares of Kajaria Ceramics Limited was last trading in BSE at Rs. 1267.55 as compared to the previous close of Rs. 1345.45. The total number of shares traded during the day was 16491 in over 2826 trades.
The stock hit an intraday high of Rs. 1349.25 and intraday low of 1229.00. The net turnover during the day was Rs. 21124615.00.
Source : Equity Bulls