Cera Sanitaryware Q1 Results Review - A Soft Quarter; Demand Pickup Likely In H2: Systematix

Systematix Report

Cera Sanitaryware Ltd. Q1 was soft (revenue/Ebitda/profit after tax down 7%/18%/16% YoY; 14.5% Ebitda margin) as elections and heatwaves impacted demand in all categories and markets.

Lower volume and higher discounts impacted margins and profit after tax. Capacity utilization in sanitaryware stood at 76% and 84% in faucet ware.

However, Cera Sanitaryware sees initial signs of improving demand for the project which should reflect in business-to-consumer in one-two quarters. Margins would also improve with a rise in sales.

Despite softness in the near term, the company has maintained its guidance of 16% revenue compound annual growth rate over four years with Ebitda margin ranging 15-17%. Of the cash pile up of Rs 8.6 billion, a Rs 1.3 billion will be utilized for the buyback (at Rs 12,000 /share).

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.