Company has been awarded Contracts from Adani Power Limited for Comprehensive & Complete
Total Water & Environment Management Solution valued at approx. INR. 161.19 Crores for
Process & Utility required of 2 x 800 MW units for Raipur & Raigarh Ultra Super Power Projects.
The projects are to be completed within 18 months from Project Award dates.

Application for NSE listing made.

Cera Sanitaryware –

Q1 FY 25 concall and results highlights –

Revenues – 398 vs 427 cr, down 7 pc
EBITDA – 56 vs 68 cr ( margins @ 14 vs 16 pc )
PAT – 47 vs 56 cr

A&P spends in Q1 were @ 11 cr. For full FY 24, A&P spends were at 64 cr

Cash and Cash equivalents @ 864 cr

Intense heat wave conditions and the slowdown caused by general elections led to subdued demand conditions in Q1

Product wise breakdown of revenues –

Sanitaryware contributed to 53 pc of revenues
Faucets contributed to 36 pc of revenues
Tiles contributed to 9 pc of sales
Wellness contributed to 2 pc of sales

Segment wise breakdown of revenues –

Luxury/Premium Segment – 44 pc
Mid Segment – 32 pc
entry Segment – 24 pc

City wise distribution of sales –

Tier -1 – 35 pc
Tier -2 – 22 pc
Tier – 3 – 43 pc

Company expects a significant pickup in business wef H2

Company sells its products under 4 prominent brand names – CERA, SENATOR, LUSTRE, LUXE

Senator, Lustre and Luxe are focussed towards the premium and luxury segments

In Q1, company’s imports from China were @ 7 cr – showing increasingly reduced dependence on China

LY, company increased its faucets ware capacity from 3 lakh pieces / month to 4 lakh pieces / month

Company has acquired a land parcel for a new Greenfield sanitaryware facility

Capacity utilisation of Sanitaryware and Faucetware plants in Q1 were @ 76 and 84 pc respectively

B2C sales were @ 64 pc of total revenues. Rest were from B2B/project markets

Gas prices remained favourable in Q1. Gas from GAIL was available @ Rs 28.38/ cubic meter vs Rs 29.31 in Q1 FY 24. Gas from Sabarmati Gas Ltd was available @ Rs 51.40 vs Rs 50.01 in Q1 FY 24. Blended cost of gas was @ Rs 31.64 vs Rs 33.91 ( as the company’s sourcing from GAIL increased from 78 pc to 86 pc YoY )

Guiding for full FY 25 EBITDA margins @ 16-17 pc. Intend to grow sales @ 16 pc CAGR for next 3 yrs ( maintaining the guidance despite a weak Q1 )

Estimated total size of Sanitaryware and Faucetware industry ( organised + unorganised ) @ Rs 9000 cr and Rs 14000 cr respectively

Company has started seeing improvement in B2B business post general elections. Company is expecting the rub off to happen in the B2C segment too – by H2 this yr

Company is investing aggressively behind the – Senator, Luxe, Lustre brands – basically to build a stronger presence in the Luxury space

Disc: initiated a tracking position, intend to add more if the price corrects or if the sales pick up, not SEBI registered, not a buy/sell recommendation, biased

Copying from Piyush’s earlier posts:

31-12-2023, Total pump installed – 2.84 lacs
31-3-2024, Total pump installed – 3.14 lacs
30-6-2024, Total pump installed – 3.97 lacs
31-07-2024, Total pump installed – 4.46 lacs
31-08-2024, Total pump installed – 4.64 lacs

67K pumps in 2 months (July 49K and Aug 18K), Fall in August is worrisome, any reasons for this fall?

Last quarter was 83K pumps, if in coming months too they do 18-19K pumps, it would be a quarter for them.