Cera Sanitaryware - Q4FY2013 Result Update - Nirmal Bang

- The Q4FY13 result was better than market estimates.

- The company's Net Sales increased by 57.6% YOY to Rs. 157.95 crs and 23.4% QoQ.

- EBITDA increased by 29.9% to Rs. 20.73 crs and was flat QoQ . EBITDA margin of the company declined by 280bps YoY to 13.1% in Q4FY13 and by 290bps QoQ. The EBITDA margin was down due to the jump in raw-material cost as a % of sales plus sales contribution from tiles business which is a low margin business.

- PAT of the company increased by 50% YoY to Rs. 13.93 crs and by 16.1% QoQ. Though margin fell by 50bps YoY to 8.8% in Q4FY13 and down by 60bps QoQ. The decline in PAT margin is due to the jump in interest cost by 88% and depreciation cost by 23.8% YoY. The fall in margin is restricted by the jump in Other income and fall in tax rate. Tax rate stood at 28.9% in Q4FY13 as against 36.2% in Q4FY12 and 33.2% in Q3FY13.

Source : Equity Bulls

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