Kajaria Ceramics Ltd. share price target

Sequential improvement in realization, Positive surprise on all front Despite multiple headwinds during the quarter sequential improvement in realisation, tile volume growth of 10.5% YoY coupled with gross margin expansion of 649bps YoY helped Kajaria Ceramics post better than...

Kajaria Ceramics results were in line with our estimates led by healthy volume growth and sequential improvement in average realization. Margins decline on YoY basis was expected due to sharp hike in gas prices. Going ahead, we expect volumes to start witnessing traction on improved demand. High gas prices may continue to impact margins but benefits to margins will come from improvement in JV performance. Company had offloaded its stake in its subsidiary Soriso Ceramics for Rs 110 mn and has booked an exceptional loss...

Led by cost optimization measures and improved utilisation, Kajaria Ceramics (KJC) has reported a decent operating performance in 2QFY19, beating our estimates albeit marginally. Reported EBITDA stood at Rs1.08bn (-11% YoY and +13% QoQ) vs. our estimate of Rs1.02bn, while EBITDA margin came in at 15% (-316bps YoY and +28bps QoQ). Average realisation improved by 1.3% QoQ to Rs349/sm, broadly in-line with our estimate. Operating cost/sm stood at Rs315/sm (+1.6% YoY and +0.9% QoQ). Revenue grew by 8% YoY and 10% QoQ to Rs7.25bn mainly led by 10.5% YoY growth in volume to 19.54msm. Whilst the Management expected JVs business to revive in current fiscal, persistent loss from the JVs does not bode well for KJC, in our view. Strong...

Kajaria Ceramics Ltd (KCL) reported disappointing numbers for Q1FY19, below our estimates on all parameters. Its consolidated revenue grew by 4.6% YoY. While volume growth stood healthy at 8.7% YoY, poor realizations in the Tiles segment impacted the overall revenue growth. Besides pricing pressure, high power & fuel cost resulted in 187bps YoY contraction in EBITDA margins.

Kajaria Ceramics reported topline of ` 6.5 bn (+4.6% YoY, -12.4% QoQ), 4.5% higher than D'est. Tile segment reported topline growth of 2.1% YoY on the back of 8.7% YoY growth in Volumes (-11.5% QoQ), Volume growth of 8.7% YoY during the quarter driven by 20.8% YoY growth in own manufacturing sales. Blended realisation for the tile division declined to `345/MSM (-6.1% YoY, -0.5% QoQ).Sanitaryware/Faucets division reported 68.7% YoY growth (-19.2% QoQ). Capacity addition by Morbi...

Sector: Construction Material /Mid-Cap | Earnings Update 1QFY19 Background: Kajaria Ceramics the largest tile manufacturer in India, with a 68.37msm annual capacity (29.47MSM Ceramic tiles, 22.4MSM PVT and 16.5MSM GVT) spread across eight plants; four plants in Morbi, Gujarat with cumulative capacity of 19.57 MSM, one each in Sikandrabad - UP (8.4MSM), Vijayawada - AP (2.9 MSM), Malutana Rajasthan (6.5 MSM) and Gailpur - Rajasthan (31 MSM). Kajaria has a strong distribution network of 1,400 dealers, 5,000 sales points across the country and 34 display centers are located at all the Kajaria's offices. Kajaria is the only tile manufacturer in India to be awarded Superbrand' status which they have retained for the...

Kajaraia Ceramics continued to report dismal set of numbers in 1QFY19 led by sustained soft realisation and higher fuel cost. While consolidated revenue grew by 5% YoY mainly due to 9% YoY volume growth and robust growth in Sanitary ware & Faucets revenues (+69% YoY), EBITDA dropped by ~7% YoY to Rs968mn. EBITDA margins declined to 14.7% (-188bps YoY and -128bps QoQ) despite 73bps YoY improvement in gross margin to 65.4%. Notably, Power & Fuel cost as percentage of sales surged by 328bps YoY to 23.4% led by higher gas prices. Average blended realisation declined by 6% YoY and 0.5% QoQ to Rs344/sm. Contrary to Kajaria's guidance of Rs200mn PAT from JVs in FY19E, 1QFY19 numbers do not reflect any improvement from JV...

The topline grew 4.7% YoY to | 657.0 crore (our expectation of | 646.6 crore) mainly on account of better volume growth The EBITDA margin contracted 180 bps YoY to 14.7% (our...

Kajaria Ceramics Ltds (KCL) Q4FY18 consolidated revenue growth of 4.1% YoY was more or less in line with our estimates, however, the company disappointed on the profit front. EBITDA de-grew by 8.2% with a 214bps YoY contraction in EBITDA margins.