Corporate Presentation - Kajaria Ceramics Limited

Corporate Presentation
JULY 2015
Agenda
Global Tile Industry
Indian Tile Industry
Kajaria Ceramics – overview
Financials
Shareholding Pattern
2
The production of top 10 countries…
(Million Sq Mtr)
CHINA
BRAZIL
INDIA
IRAN
SPAIN
INDONESIA
ITALY
TURKEY
VIETNAM
MEXICO
TOTAL WORLD PRODUCTION
Source: Ceramic World Review
CY09
3600
715
490
350
324
278
368
205
295
204
8581
CY10
4200
754
550
400
366
287
387
245
375
210
CY11 CY12
4800 5200
844
866
617
691
475
500
392
404
320
360
400
367
260
280
380
290
219
229
CY13
5700
871
750
500
420
390
363
340
300
228
9619
10599
11913
11194
48%
6%
3
World production scenario
• In 2013 world tile production reached 12 billion sq. mtr. - up 6.4% over 2012.
• Asia produced 8315 million sqm – up 8.4% over 2012.
Source: Ceramic World Review
4
The consumption of top 10 countries…
CHINA
BRAZIL
INDIA
INDONESIA
IRAN
VIETNAM
SAUDI ARABIA
RUSSIA
USA
TURKEY
CY09
3030
644
494
297
295
240
166
139
173
138
CY10
3500
700
557
277
335
330
182
158
186
155
CY11
4000
775
625
312
395
360
203
181
194
169
(Million Sq Mtr)
CY12 CY13
4250
4556
803
837
681
748
340
360
375
350
254
251
230
235
213
231
204
230
184
226
TOTAL WORLD CONSUMPTION
8535
9491
10436
10932
Source: Ceramic World Review
39%
7%
11574
5
Global consumption Scenario (CY13)
• The break down in consumption by geographical area is very similar to that of production.
• In Asia, the consumption maintained at 66.5% in CY13.
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 which was 748 million sq. mtr. as of March 2014
is expected to be around 825 million sq. mtr. as of March 2015
• Industry size is estimated to be Rs. 24000 crore as of March 2015.
• 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.
8
Indian Industry – Major Players
National Brands control around 50% of the Industry
Turnover as on
31.03.2015
(Rs/Cr)
Kajaria Ceramics
2404
Prism Cement (TBK Division)
2386
Somany Ceramics
1613
Asian Granito
926
Nitco Tiles
914
RAK Ceramics *
800
Orient Bell Ceramics
750
Simpolo *
650
Varmora *
650
Sun Heart *
450
Murudeshwar Ceramics
147
Others (Tocco, Swastic, Marbomax, Bell Granito etc)*
500
Total
12190
* 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 825 MSM tile Industry (Rs. 24000 Crore)
45
MSM
5
265 MSM
MSM
40
MSM
Manufactured at Gailpur and
Sikandrabad.Total capacity 9.30 MSM
Glazed
Vitrified Tiles
(45 MSM /
Rs. 3000 Crore)
Polished
Vitrified Tiles
Manufactured at Gailpur and Morbi (Jaxx, cosa
and Taurus). Total capacity 23.90 MSM. And
outsourcing from Morbi (Gujarat).
(310 MSM /
Rs. 10500 Crore)
10
MSM
460 MSM
Ceramic Wall & Floor Tiles
(470 MSM / Rs. 10500 Crore)
Import Share
Domestic Share
Manufactured at Gailpur, Sikandrabad,
Morbi (Soriso) and Vijaywada
(Vennar). Total capacity 25.90
MSM. Also outsourced from
some units in Morbi.
11
Manufacturing
• 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
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 21.50 millions sq.
mtr. per annum of ceramic wall tiles and vitrified tiles.
13
The total present capacity is 59.10 msm per annum
14
Geographical Spread of the
Tile Production Capacity
9.80 MSM
(Sikandrabad, U P)
21.50 MSM
(Gailpur, 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)
MSM
Plant
Ceramic Polished Glazed
Vitrified Vitrified
Tiles
Tiles
Tiles
Total
1. Sikandrabad (UP)
3.50
-
6.30
9.80
2. Gailpur (Rajasthan)
15.50
3.00
3.00
21.50
3. Morbi (Gujarat)
4.60
20.90
-
25.50
4. Vijayawada (AP)
2.30
-
-
2.30
25.90
23.90
9.30
59.10
Total
2.30 MSM
(JV with Vennar, Vijayawada,
Andhra Pradesh)
15
Ongoing Expansions /Acquisitions
A.
Greenfield Project (Rajasthan)
The Company had decided to put up 5 msm Greenfield facility of polished vitrified tiles at
a new location at Malutana, Distt. Thana Gazi (Rajasthan). The Board in its meeting dated
20th July has approved to increase the capacity to 6.50 MSM per annum. The project is
expected to commence operations in Q416.
B.
Brownfield Project (Rajasthan)
The facility at its existing location in Rajasthan for production of 3 MSM Capacity of
ceramic floor tiles is complete. The full production is expected to commence by September
2015.
C. New Acquisition (AP)
The Board has approved for acquisition of 51% stake in Floera Ceramics Pvt. Ltd. Floera Ceramics
plans to put up a manufacturing facility of polished vitrified tiles with a capacity of 5.70 MSM p.a.
in Andhara Pradesh.
16
Diversification
KAJARIA BATHWARE (P) LIMITED
a) Sanitaryware: Kajaria Sanitaryware (P) Ltd., in which KBL holds 64% shares (82%
now), has started the production of sanitaryware on 6th April 2014. However, the
production will achieve optimum level during the year.
b) Faucet: The 1.00 million pieces faucet facility at Gailpur (Rajasthan) commenced
commercial production on 17th July 2015.
17
Distribution Network of Strong & Loyal 900 dealers all Over the country
A stand alone shop that gives dedicated space to all tile
verticals.
A stand alone shop that gives 2000 sq. ft. + dedicated
space to high end tiles made or imported by the company.
A stand alone shop that gives dedicated space to at least
two tile verticals without keeping any other tile brands in
same category.
A shop where a dealer gives dedicated space for display of
Ceramic Wall & Floor Tiles without keeping any other
ceramic tile brands.
A shop in shop concept where dealer gives a dedicated
space to Polished Vitrified or Glazed Vitrified Tile verticals
without keeping any other vitrified tile brands.
Multi brand dealers
18
The above 900 dealers cater to around 10000 sales points across the country
23 Corporate Offices /
Display Centers across the
country
Ludhiana
Dehradun
Chandigarh
New Delhi
Lucknow
Jaipur
Varanasi
Ahmedabad
Indore
Kolkata
Raipur
Nagpur
Mumbai
Pune
Hyderabad
Bengaluru
Chennai
Coimbatore
Cochin
Customers / Architects come to select the tiles,
then buy from their nearest dealer.
19
TAKING PART IN EXHIBITIONS ACROSS THE COUNTRY
20
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
21
PAT (Rs. Crore)
Net Sales (Rs. Crore)
200
2500
2175
160
1829
2000
140
1582
1500
176
180
124
120
1312
105
100
1000
952
80
81
61
60
40
500
20
0
0
FY-11
FY-12
FY-13
FY-14
FY-15
FY-11
EBDITA MARGIN (%)
FY-12
FY-13
FY-14
FY-15
PAT MARGIN (%)
18.00
10.00
17.00
8.07
16.62
8.00
16.00
15.64
15.83
15.65
15.69
6.37
6.61
6.79
FY-13
FY-14
6.17
6.00
15.00
14.00
4.00
FY-11
FY-12
FY-13
FY-14
FY-15
FY-11
FY-12
FY-15
22
Debt Equity (X)
Standalone
Debt (Rs. Crore)
Consolidated
Standalone
1.00
Consolidated
350
0.82
300
320
0.75
250
0.61
200
0.50
0.41
Mar-13
Mar-14
200
100
0.30
0.00
0.24
0.11
Mar-15
0.03
89
50
26
Mar-13
Jun-15
34.00
Consolidated
32.00
47.00
30.00
42
37.00
27.00
27
Jun-15
Consolidated
32.51
31.49
27.65
26.00
29
25
22.00
Standalone
28.00
28
25
Mar-15
27.91
42
32
32.00
Mar-14
Return on Equity (Avg.)
52.00
42.00
81
0
Working Capital Cycle (days)
Standalone
243
236
150
0.25
0.17
216
26.70
27.16
25.31
24.89
24.00
22.00
17.00
20.00
12.00
Mar-13
Mar-14
Mar-15
Jun-15
Mar-13
Mar-14
Mar-15
Jun-15
# Capex creditors not considered in working capital cycle.
@ Working capital cycle as on 31 Mar 15 & 30 Jun 15 (on standalone basis) has gone up mainly due to increase in loans given to the subsidiaries.
* ROE as on 30th Jun. 15 taken at average of net worth as on 31st Mar. 15 & 30th Jun. 15 and Q1FY16 PAT.
23
Income Statement
Financial highlights
Q1FY16
(Rs in Crore)
Q1FY15
Growth
FY15
FY14
Growth
Standalone
Consolidated
Standalone
Consolidated
Standalone
Consolidated
Standalone
Consolidated
Standalone
Consolidated
Standalone
Consolidated
Gross Sales
600.11
609.59
545.43
551.46
10%
11%
2369.40
2404.08
2001.03
2015.00
18%
19%
Net Sales
563.06
546.03
511.28
500.37
10%
9%
2224.34
2174.59
1875.47
1829.45
19%
19%
EBIDTA
76.26
92.84
66.10
80.98
15%
15%
286.05
354.13
237.49
285.12
20%
24%
13.54%
17.00%
12.93%
16.18%
12.86%
16.28%
12.66%
15.59%
Depreciation
11.11
16.47
9.86
12.67
13%
39.38
55.88
36.49
47.00
8%
19%
Other Income
4.32
1.21
0.39
0.45
1008%
8.49
7.22
2.07
1.87
310%
286%
2.27
7.36
2.39
7.56
-5%
5.97
29.39
26.27
40.82
-77%
-28%
5.75
5.75
EBIDTA MARGIN
Interest
30%
-3%
Exceptional Items
Profit Before Tax
67.20
70.22
54.24
61.20
24%
15%
243.44
270.33
176.80
199.17
38%
36%
Tax
20.83
21.87
17.90
20.50
16%
7%
75.08
85.43
60.06
67.82
25%
26%
2.13
Minority Interest
2.12
9.30
7.13
57.48
62.69
46.20
51.25
24%
22%
207.74
231.48
153.23
171.22
36%
35%
Profit After Tax
46.37
46.22
36.34
38.58
28%
20%
168.36
175.60
116.74
124.22
44%
41%
Equity
15.89
15.89
15.12
15.12
15.89
15.89
15.12
15.12
5.83
5.82
4.81
5.10
21.80
22.74
15.70
16.71
39%
36%
Cash Profit
EPS (Basic) (Rs)
21%
14%
24
Shareholding Pattern
As on 30th Jun 2015
Equity Shares Outstanding – 79.47 millions
Public / Others
21.28%
NRI's
0.87%
Promoters
49.54%
FIs / FIIs / Mutual
Funds
28.31%
25
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.
26
Thank You!
27