Cera Sanitaryware - 4QFY2013 results - Angel Broking

Cera Sanitaryware (CSL) reported a strong set of numbers for 4QFY2013. The top-line surged by 57.6% yoy to Rs. 158cr, 21.5% higher than our expectation of Rs. 130cr. The EBITDA grew by 30.1% yoy to Rs. 20.8cr, in line with our estimate of Rs. 20.7cr. The EBITDA margin dipped by 278bp yoy and came in at 13.1%. The dip is attributable mainly to the rise in raw material cost. Despite relatively low growth in EBITDA compared to the revenue growth, net profit grew by 50.7% yoy to Rs. 14cr on account of higher other income during the quarter.

Top line for FY2013 grew by 52.1% and came in at Rs. 488cr, higher than our expectation of Rs. 460cr. EBITDA for the year grew by 40.9% to Rs. 75.3cr, in line with our estimate of Rs. 75.2cr, while EBITDA margins dip by 124 basis points to 15.4%, owing to high raw material cost. The company reported net profit of Rs. 46.2cr, visà- vis our estimate of Rs. 44cr, while net profit margins stood at 9.5% lower by 44 basis points last year.

As we rollover to FY2015E we maintain our Buy recommendation and have revised our target price to Rs. 620, based on a target PE of 11x for FY2015E.

Source : Equity Bulls

Keywords