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)
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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.
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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