Corporate Presentation - Kajaria Ceramics Limited
Transcription
Corporate Presentation - Kajaria Ceramics Limited
Corporate Presentation August 2016 Agenda Global Tile Industry Indian Tile Industry Kajaria Ceramics – overview Financials Shareholding Pattern 2 The production of top 10 countries… (Million Sq Mtr) CY10 CY11 CY12 CY13 CY14 CHINA 4200 4800 5200 5700 6000 BRAZIL 754 844 866 871 903 INDIA 550 617 691 750 825 SPAIN 366 392 404 420 425 INDONESIA 287 320 360 390 420 IRAN 400 475 500 500 410 ITALY 387 400 367 363 382 VIETNAM 375 380 290 300 360 TURKEY 245 260 280 340 315 MEXICO 210 221 231 230 230 9644 10630 11230 11973 12409 TOTAL WORLD PRODUCTION Source: Ceramic World Review 48% 7% 3 World production scenario • In 2014 world tile production reached 12.41 billion sq. mtr. - up 3.6% over 2013. • Asia produced 8747 million sq. mtr. – up 4.8% over 2013. Source: Ceramic World Review 4 The consumption of top 10 countries… (Million Sq Mtr) CY10 CY11 CY12 CY13 CY14 CHINA 3500 4000 4250 4556 4894 BRAZIL 700 775 803 837 853 INDIA 557 625 681 718 756 INDONESIA 277 312 340 360 407 VIETNAM 330 360 254 251 310 IRAN 335 395 375 350 280 SAUDI ARABIA USA 182 203 230 235 244 186 194 204 230 231 RUSSIA 158 181 213 231 219 TURKEY 155 169 184 226 215 9543 10486 10978 11604 12095 TOTAL WORLD CONSUMPTION Source: Ceramic World Review 40% 6% 5 Global consumption Scenario (CY14) • The break down in consumption by geographical area is very similar to that of production. • In Asia, the consumption maintained at 67.5% in CY14. Source: Ceramic World Review 6 Global Scenario … Per capita consumption of tile (Sq Mtr) Source: Ceramic World Review 7 Indian Tile Industry • Indian tile industry is estimated to be 810 million sq. mtr. as of March 2016 • Industry size is estimated to be Rs. 26000 crore as of March 2016. • National Brands contribute to around 50% of industry. • The industry has been growing at a CAGR of 12 - 13% per annum in the last 4-5 years, but has grown at around 7–8% in FY 2016. 8 Indian Industry – Major Players National Brands control around 50% of the Industry Turnover as on 31.03.2016 (Rs/Cr) Kajaria Ceramics 2696 Prism Cement (TBK Division)* 2450 Somany Ceramics 1801 Asian Granito 961 Nitco Tiles 861 RAK Ceramics * 760 Orient Bell Ceramics 757 Simpolo * 600 Varmora * 650 Sun Heart * 450 Murudeshwar Ceramics 122 Others (Swastic, Marbomax, Bell Granito etc)* 800 Total 12908 * estimated 9 Balance of the industry is represented by other regional brands/unbranded players present in Morbi/ Himmatnagar (Gujarat). 10 Indian Industry – Segmentation How Kajaria is Catering to all the segment of the 810 MSM tile Industry (Rs. 26000 Crore) 35 MSM 5 250 MSM MSM 70 MSM Manufactured at Gailpur and Sikandrabad.Total capacity 12.30 MSM Glazed Vitrified Tiles (75 MSM / Rs. 4000 Crore) Polished Vitrified Tiles Manufactured at Gailpur, Malutana and Morbi (Jaxx, cosa and Taurus). Total capacity 27.40 MSM. (285 MSM / Rs. 11000 Crore) 10 MSM 440 MSM Ceramic Wall & Floor Tiles (450 MSM / Rs. 11000 Crore) Import Share Domestic Share Manufactured at Gailpur, Sikandrabad, Morbi (Soriso) and Vijaywada (Vennar). Total capacity 28.90 MSM. Also outsourced from some units in Morbi. 11 Manufacturing – Own Plants • Kajaria started production in August 1988 at Sikandrabad (UP) with 1 million sq. mtr. per annum. • Current Capacity of Sikandrabad plant is 9.80 million sq. mtr. of ceramic floor tiles and glazed vitrified tiles. 12 Manufacturing – Own Plants Commissioned 2nd Plant in March 1998 at Gailpur (Rajasthan) with a capacity of 6 million sq mtr p.a. and further increased the capacity in phased manner. The present capacity of Gailpur plant is 24.50 millions sq. mtr. per annum of ceramic wall tiles and vitrified tiles. 13 Manufacturing – Own Plants Commissioned 3rd Plant in January 2016 at Malutana (Rajasthan) with a capacity of 6.50 million sq mtr p.a. of polished vitrified tiles. 14 Manufacturing – Through Joint Ventures A. SORISO CERAMICS Acquired 51% stake in Soriso Ceramic Pvt Ltd. based in Morbi, Gujarat in February 2011 with an annual capacity of 2.30 MSM of ceramic floor tiles. Further expanded the capacity to 4.60 MSM in March 2012. Soriso has operated at 85% in FY16. B. JAXX VITRIFIED Acquired 51% stake (now 61%) in Jaxx Vitrified Pvt Ltd, based in Morbi, Gujarat in February 2012, with an annual capacity of 3.10 MSM. Production commenced in March 2012. Jaxx has acquired another plant with a 2.60 MSM annual capacity of polished vitrified tile in April 2013 in Morbi making the total capacity of Jaxx to 5.70 MSM per annum. Further expansion of 4.50 MSM polished vitrified tile has increased Jaxx capacity to 10.20 MSM. The old plant of Jaxx having 3.10 MSM capacity remained shut for 2 months in Q3 FY16 and 1 month in Q4 FY16 due to replacement of kiln. Jaxx has operated at 86% in FY16. C. VENNAR CERAMICS Acquired 51% stake in Vennar Ceramics Ltd, based in Vijayawada, Andhra Pradesh in April 2012, with an annual capacity of 2.30 MSM of high end ceramic wall tiles. Production has commenced on the 1st July, 2012. Vennar has operated at full capacity in FY16. D. COSA CERAMICS Acquired 51% stake in Cosa Ceramics Pvt. Ltd., based in Morbi, Gujarat – on 16th Oct.’12, with an annual production capacity of 2.70 MSM of polished vitrified tiles and further increased to 5.70 MSM in Sep. 2014. Cosa has operated at full capacity in FY16. E. TAURUS TILES The Company has entered into another JV, Taurus Tiles Pvt. Ltd., which has put up 5 MSM polished vitrified tile capacity at Morbi (Gujarat). Kajaria owns 51% equity in Taurus. The commercial Production has commenced on 27 June 2015. The Plant has operated at full capacity in FY16. 15 The total present tile capacity is 68.60 msm per annum 16 Geographical Spread of the Tile Production Capacity 9.80 MSM 24.50 MSM (Sikandrabad, U P) (Gailpur, Rajasthan) 6.50 MSM (Malutana, Rajasthan) 4.60 MSM (JV with Soriso, Morbi Gujarat) 5.70 MSM (JV with Cosa, Morbi, Gujarat) 10.20 MSM (JV with Jaxx, Morbi, Gujarat) 5.00 MSM (JV with Taurus, Morbi, Gujarat) Plant Ceramic Polished Vitrified Tiles Tiles MSM Glazed Vitrified Tiles Total 1. Sikandrabad (UP) 3.50 - 6.30 9.80 2. Gailpur (Rajasthan) 18.50 - 6.00 24.50 - 6.50 - 6.50 3. Morbi (Gujarat) 4.60 20.90 - 25.50 4. Vijayawada (AP) 2.30 - - 2.30 28.90 27.40 12.30 68.60 3. Malootana (Rajasthan) Total 2.30 MSM (JV with Vennar, Vijayawada, Andhra Pradesh) 17 Ongoing Expansions /Acquisitions New Acquisition (AP) The Company has acquired 51% stake in Floera Ceramics Pvt. Ltd, which is putting up a manufacturing facility of polished vitrified tiles with a capacity of 5.70 MSM p.a. in Andhra Pradesh. The land has already been acquired. The plant is expected to be commissioned in FY 16-17. 18 Diversification KAJARIA BATHWARE (P) LIMITED a) Sanitaryware: Kajaria Sanitaryware (P) Ltd., in which KBL holds 82% shares, has started the production of sanitaryware in 2014-15. The plant will achieve optimum level during this year. b) Faucet: The 1.00 million pieces faucet facility at Gailpur (Rajasthan) commenced commercial production on 17th July 2015. 19 Distribution Network of strong and loyal 1100 dealers all over the country, which include outlets like The above dealers cater to around 4000 associate dealers across the country 20 25 Corporate Offices / Display Centers across the country Ludhiana Dehradun Chandigarh New Delhi Lucknow Jaipur Varanasi Ahmedabad Indore Kolkata Raipur Nagpur Aurangabad Mumbai Pune Hyderabad Bengaluru Chennai Coimbatore Cochin Customers / Architects come to select the tiles, then buy from their nearest dealer. 21 TAKING PART IN EXHIBITIONS ACROSS THE COUNTRY 22 Only Ceramic Tile Company in India conferred with “Superbrand” for Eighth consecutive time. Superbrand is a concept that originated in the UK in 1993 and currently operating in 86 countires 23 Net Sales (Rs. Crore) PAT (Rs. Crore) 3000 250 229 2408 2500 200 2177 176 1829 2000 150 1582 1500 124 105 100 1000 50 500 0 0 FY-13 FY-14 FY-15 FY-16 FY-13 EBDITA MARGIN (%) 20.00 FY-14 19.24 15.65 15.69 FY-16 PAT MARGIN (%) 10.00 9.52 18.00 16.00 FY-15 8.06 16.26 8.00 6.61 6.79 14.00 6.00 12.00 10.00 4.00 FY-13 FY-14 FY-15 FY-16 FY-13 FY-14 FY-15 FY-16 24 Debt Equity (X) Standalone Debt (Rs. Crore) Consolidated Standalone Consolidated 350 0.50 250 0.29 0.28 0.21 0.16 150 100 0.11 0.05 Mar-15 Mar-16 89 43 0 0 Jun-16 Mar-14 Working Capital Cycle (days) # Standalone 55.00 81 50 0.00 0.00 Mar-15 Consolidated Standalone 52 28.00 26.23 50 48 45.00 46 47 26.00 26.24 Jun-16 Consolidated 27.05 27.65 26.38 25.25 25.73 25.08 40.00 24.00 34 35.00 Mar-16 Return on Equity (Avg.) ## 50.00 30.00 239 243 236 200 0.25 Mar-14 293 300 0.39 31 31 22.00 25.00 20.00 Mar-14 Mar-15 Mar-16 Jun-16 20.00 Mar-14 Mar-15 * Recomputed as per IND – AS # Working capital excludes capex creditors and includes cash & bank balance. Working capital cycle showing higher no. of days mainly due to excluding dividend as current liability as per IND - AS. ## ROE as on 30th Jun 16 taken at average of net worth as on 31st Mar. 16 & 30th Jun 16 and Q1 FY17 PAT. Mar-16 Jun-16 25 Income Statement Financial highlights (Rs in Crore) Q1 FY17 Q1 FY16 Growth FY16 Standalone Consolidated Standalone Consolidated Standalone Consolidated Standalone Consolidated Gross Sales 639.83 665.96 599.94 609.42 7% 9% 2607.01 2695.32 Net Sales 594.53 591.78 562.89 545.86 6% 8% 2440.60 2408.19 EBIDTA 107.96 127.07 75.22 92.29 44% 38% 387.69 459.54 EBIDTA MARGIN 18.16% 21.47% 13.36% 16.91% 15.89% 19.08% Depreciation 12.93 19.92 11.11 16.47 16% 21% 47.20 72.62 Other Income 5.18 1.72 5.69 1.35 -9% 27% 25.23 9.48 1.40 9.24 2.27 6.62 -38% 40% 9.32 35.23 Interest 1.51 Exceptional Items Profit Before Tax 98.81 99.63 67.53 70.55 46% 41% 354.89 361.17 Tax 33.37 35.05 20.83 21.87 60% 60% 117.17 124.37 1.17 Minority Interest 2.13 4.78 78.37 83.33 57.81 63.02 36% 32% 284.92 304.64 Profit After Tax 65.44 63.41 46.70 46.55 40% 36% 237.72 232.02 Equity 15.89 15.89 15.89 15.89 15.89 15.89 8.23 7.98 5.88 5.86 29.91 29.20 Cash Profit EPS (Basic) (Rs) As per IND-AS 40% 36% 26 Shareholding Pattern As on 30th Jun 2016 Equity Shares Outstanding – 79.47 millions NRI's 0.71% Public / Others 20.18% Promoters 47.18% FIs / FIIs / Mutual Funds 31.93% 27 Forward looking and cautionary statement Certain statements in this report concerning our future growth prospects are forward looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward looking statements. The risk and uncertainties relating to these statements include, but are not limited to risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, completion, including those factors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, contracts, our ability to commission, our ability to raise the finance within time and cost, our ability to manage our internal operations, reduced demand for tiles , our ability to successfully complete and integrate potential acquisitions, withdrawal of fiscal/governmental incentives, impact of regulatory measures, political instability, unauthorized use of our intellectual property and general economic conditions affecting our industry. The company does not undertake to update any forward looking statements that may be made from time to time by or on behalf of the company. 28 Thank You! 29
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