Data in INR Crores except per share amounts and in % Mar'13
Particulars Mar'13
Industry
SANITARYWARE 2400
FAUCETWARE 4500
TILES 18000
Industry Growth
SANITARYWARE GROWTH
FAUCETWARE GROWTH
TILES GROWTH
Organized Market Share
SANITARYWARE
FAUCETWARE
TILES
Revenue from Operations ₹ 488
Gross Revenue from sale of products and services (manufactured and traded) ₹ 511
Excise Duty ₹ 24
Net Revenue from sale of products and services (manufactured and traded) ₹ 488
Other Operating Income
YoY Growth Rate
Revenue Growth
Segmental Revenue
SANITARYWARE REVENUE 40% ₹ 366
FAUCETWARE REVENUE 60% ₹ 68
TILES REVENUE 20% ₹ 39
WELLNESS REVENUE 30% ₹ 15
Revenue Growth Rates
Cost of Goods Sold 214
Cost of Materials Consumed ₹ 50
Purchases of Stock-in-Trade ₹ 164
Changes in Inventory ₹ 0.45
Gross Profit ₹ 274
Gross Profit Margin 56%
Employee Benefit Expense ₹ 58
12%
Selling & Distribution Cost ₹ 45
Sales Promotion Expense 27
Publicity & Advertising 18
Revenue/Publicity & Advertising
Power & Fuel
Other Expenses ₹ 141
29%
Stores, Spares, Chemicals and Packing Materials Consumed
Repairs and Maintenance
-To Buildings
-To Plant and Equipment
-To Others
Auditors’ Remuneration
- As Audit Fees
- For Limited Review
- For Taxation matters
- For Other services
- For Reimbursement of expenses
Research & Development Expenses
Freight and Forwarding Expenses (Net)
Bad Debts
Allowance for Expected Credit Loss - Trade Receivables
Allowance for Expected Credit Loss - Capital Advances
Allowance for Expected Credit Loss - Security Deposits
Rent Expenses
Insurance
Rates and Taxes
Loss on Sale of Property, Plant and Equipment (Net)
Directors’ Commission
Directors’ Sitting fees
Foreign Exchange Fluctuations (Net)
Donation
CSR Expenses
Amortization of Prepaid Rentals
Deficit due to surrender of exemption granted to Provident Fund Trust
Excise Duty (Net of Opening Provision)
Provision for dimunition in the value of Investments
Brokerage, Commission and Discounts on Sales
Miscellaneous Expenses
EBITDA ₹ 75
YoY EBITDA Growth
EBITDA Margins 15%
Depreciation and Ammortization ₹9
2%
EBIT ₹ 66
EBIT Margins 14%
FInance Cost ₹7
1%
Other Income ₹9
1.8%
Profit before tax before exceptional items ₹ 68
Exceptional items (Loss) 0
Profit before tax ₹ 68
PBT Margins 14%
Tax Expense 21.604061
Tax % 4%
Effective Tax Rate 32%
Profit After Tax ₹ 46
PAT Growth Rate
PAT Margin 9%
EPS (INR) 36.51
Diluted EPS (INR) 36.51
Weighted average number of equity shares ###
Total Assets ₹ 380
Fixed Assets ₹ 129
As a % of Revenue 26.52%
As a % of Total Assets 34.08%
Capex/CWIP -₹ 38
Sanitaryware Installed Capacity (in Mn Pcs p.a.) 2.7
Capacity Utilization (in %)
Average Capacity Utilization (in %)
Faucetware Installed Capacity (Pcs per day) 2500
Capacity Utilization (in %)
Average Capacity Utilization (in %)
Non Core assets ₹ 42
Net Working Capital (Debtor+Inventory+Advance to Supplier-Payable-Advance from
Customers) 149
Debtor 83
17%
Inventory 94
19%
Payable 28
6%
Advance from Customer
Advance to Supplier
Total Assets Turnover 1.29
Fixed Assets Turnover 3.77
Net Working Capital Turnover 3.27
Debtor Turnover 5.88
Inventory Turnover 5.19
Payable Turnover 17.42
Non Core Asset Turnover 11.69
Leverage without Minority Interest 2.1
Leverage 2.1
Debt ₹ 55
Equity ₹ 180
Equity without Minority ₹ 180
Debt/Equity 0.3
ROE 26%
JV/Associates include ROE 26%
JV/Associates Share 0
Total PAT(PAT+JV/Associate Share) ₹ 46
NOPAT = EBIT(1-T) ₹ 45
NOPAT Growth
Invested Capital (Fixed Assets + Net Working Capital) ₹ 278
ROIC (Overall Business) = NOPAT Margins * IC Turnover 16.1%
NOPAT Margins 9%
IC Turnover 1.75
Re-investment Rate (NOPAT Growth = ROIC * RR) or in negative years Capex/CFO 0%
CFO before WC changes/NOPAT 1.82
CFO before WC ₹ 82
CFO before WC changes/Revenue 17%
WC/Revenue 31%
Revenue/WC 3.27
CFO after WC changes/Revenue 13%
CFO before taxes/EBITDA (CFO before taxes - LP/EBITDA- LP) 83%
∑CFO before taxes/∑EBITDA (5 years)
∑CFO before taxes (5 years)
∑EBITDA (5 years)
Cash Conversion Cycle/Net Working Capital Cycle
Debtor Days 62
Inventory Days 70
Payable Days 21
Advance from Customer Days
Advance to Supplier Days
Working Capital Cycle (Debtor & Inventory ONLY) 132
FCF ₹4
FCF Growth
FCF as a % of revenue 1%
Interest Coverage Ratio (CFO pre-tax & interest/Interest) or (EBIT/Interest) 8.80
Debt/EBITDA
Debt/CFO before taxes
Fixed Cost vs Variable Cost
Fixed Cost
As a % of Total Cost
Variable Cost
As a % of Total Cost
Return on Equity (Leverage Constant) 25%
Asset Turnover 1.29
Leverage 2.02
Net Profit Margin 9%
Return on Equity (Asset Turnover Constant) 29%
Asset Turnover 1.47
Leverage 2.12
Net Profit Margin 9%
Mar'14 Mar'15 Mar'16 Mar'17 Mar'18 Mar'19 Mar'20 Mar'21 Mar'22 Mar'23
Mar'14 Mar'15 Mar'16 Mar'17 Mar'18 Mar'19 Mar'20 Mar'21 Mar'22 Mar'23
₹ 822 ₹ 918 ₹ 1,009 ₹ 1,197 ₹ 1,351 ₹ 1,223 ₹ 1,224 ₹ 1,447 ₹ 1,811
₹ 858 ₹ 961 ₹ 1,059 ₹ 1,189 ₹ 1,344 ₹ 1,211 ₹ 1,218 1443 1801
36 43 54
₹ 822 ₹ 918 ₹ 1,005 ₹ 1,189 ₹ 1,344 ₹ 1,211 ₹ 1,218 ₹ 1,443 ₹ 1,801
0 0 ₹4 ₹8 ₹7 ₹ 12 ₹6 ₹4 ₹ 10
12% 9% 18% 13% -10% 1% 18% 25%
₹ 96 ₹ 87 ₹ 184 ₹ 155 ₹ -133 ₹7 ₹ 225 ₹ 358
Mar-24 CAGR Range Trend
₹ 1,880
1867
₹ 1,867
₹ 13
4%
₹ 66
1
2021
2016
REASON INDUSTRY
REASON COMPANY
2021
company wise
industry
3
INDUSTRY GROWTH DRIVERS
SANITARYWARE INDUSTRY YOY GROWTH
AND CERA SANITARYWARE YOY GROWTH
AND SAME FOR FAUCET AND TILES
AND THE REASON FOR GROWTH IN INDUSTRY
AND IF ANY PARTICULARS TIME FRAME THEN GIVE REASON FOR THIS TOO
EX AFTER 2021 AFFORDABLE HOUSING , THEN PUT THAT DATAT TOO OF AFFORDABLE HOUSING
AND DIP TOO, DIP HELP IN FINDING RISK
debt to equity bcoz of anjnai tiles
revenue
65 because of labour strike , 65 crore is estimated
and in q1 fy 21 there was covid time therefore it lead to less revenue in that qtr
therefore there was no such growth in 2021
gross profit margin
IN MARCH 2016 , THE YOY COGS INCREASED TO 15% WHEREAS AS THE REVENUE INCREASED ONLY 12%
AND THE AVERAGE COGS AS A % OF REVENUE IS 46% , BUT THIS YEAR IT WAS 48%
IN OVERALL THERE WAAS SUBDUE DEMAND FOR SANITARYWARE THEREFORE THE REPLACEMTN DEMAND FOR FAUCET IS MO
ONE OF THE REASON IS BECAUSE OF INCREASE OF SALE OF FAUCET IN OVERALL REVENUE , AS WE KNOW THAT CERA HAVE GO
LEAD TO DECREASE IN GROSS PROFIT MARGIN
and the percentage of sanitaryware also was down for 5%
the gpm declinf form 59% to 49%
from concall q4 fy 21 - There are three contributory factors, Mr. Baid. First of all, COGS increased due to two
factors. In Faucetware sharp increase in the critical raw material of brass and that
sharp increase was consistent in every quarter from Q2. So the dramatic price
decrease that in brass that we saw in Q1 of last year was beneficial to the Company.
We did not reduce our prices. And as brass prices went up from Q2, Q3, Q4, we
increased one price hike last year and one this year. That was one reason. The
second impact on COGS was the mould. So post resumption of the factory on 22nd December it took another 45 days to run
a maintenance cycle and to build fresh moulds for Sanitaryware. So that is one
reason why the COGS is impacted. the raw materials in
Sanitaryware are widely available, there is very little impact in pricing. So, clay,
feldspar all of that have very little pricing and availability continues to be plenty. The
only moving item in this is brass. So zinc is less than 1% of raw material where the
prices have gone up. So brass is the largely contributory factor and the mold making
process completed on 15th February since then, there has been no extraordinary
maintenance cycle that the company has had to spend on.
In sanitaryware, we undertook a price hike of 5% to 7% in February 2021, 4% in August 2021 and 10% in November 2021. The
was from 8% to 10% in February 2021, another 10% in August 2021 and 5.5% in December 21. The compounded impact of all
even in hsil q4fy21 they were talking about raw material price hike
EBITDA MARGIN
in 2020 and 2021 the gpm margin fell from 55 to 49% even thought the company ebitda margin fell from 13 to 12 and ebit we
so in these period in 2021 the advertisemnt and publicity were down therefore in ebitda margin it didn’t effected
and what management is saying - There are two, three levers. First, we had a burst in advertising and publicity spends
from September 19 to March 20. And that is the reason advertising and publicity
during this lockdown year could be curtailed, because that was a very successful
campaign.
and in next years as the gpm improve they started increasing adv. Spends
and same goes in power and fuel from 4.8% to 3.10%
and during starting of q2 fy 21 and till last 9 days of q3fy21 , they were having labour strike therefore and even that leads to le
and less employee salry
therefore in addition icompnay did less advertisemnt therefore overall ebitda margin was fine
That was the only grievance. And as far as margins are concerned,
margins for our own production even on high-end pieces etc. are almost similar to
our outsourced pieces, which continued throughout this period of Q3. In most
quarter if you follow the Company, 50% to 55% of sanitaryware is outsourced. This
number became 77% because of the percentage of own production decreasing. bcoz of labour but that doent mean that marg
milo question M/s Milo Tiles LLP (An Associate) whose Share of Profit / (Loss) for the period 1st April, 20
ans Yes, the situation described can impact your standalone financial statements, but the effe
1. Impairment of Investment:
The impairment loss of ₹500 Lakhs on the investment in M/s Milo Tiles LLP is recognized
This reduces the carrying amount of your investment in the associate under non-curren
The loss also impacts your profit and loss account, reducing net profit for the period.
Effect on Assets:
The total investment value reduces by ₹500 Lakhs, directly affecting the asset side of you
Effect on Liabilities:
There is no direct impact on liabilities. However, any accumulated loss affecting retained
Conclusion:
Assets: Your investment in the associate decreases by ₹500 Lakhs due to the impairmen
Liabilities: No direct impact unless the impairment indirectly affects retained earnings an
Overall Materiality: If the financials of the associate are later received and material loss
If you'd like further clarity on how to handle such disclosures or prepare for future adjustm
anjani question On 5th August, 2021, the Board of Directors of the Parent Company considered the propo
ans Yes, you are correct. When the Parent Company classifies the assets and liabilities of a sub
1. Assets and Liabilities Reclassified:
The assets and liabilities of the subsidiary are reclassified as "Non-current Assets Held fo
Post-Sale Scenario:
Once the sale is completed, the Parent will derecognize:
The subsidiary’s assets and liabilities from the consolidated balance sheet.
The net gain or loss on the sale of the subsidiary, if any, in the profit or loss statement.
Any non-controlling interest (if applicable).
Summary:
Yes, your consolidated assets will decrease because:
1. The subsidiary's assets are reclassified and eventually derecognized upon sale.
2. The impairment loss also directly impacts the consolidated equity/profit, further redu
If you need more detailed guidance or clarification on accounting treatment or reporting d
for the period 1st April, 2022 to 31st March, 2023 has not been included in these financial statements due to non receipt of financial in
al statements, but the effect will be limited to specific areas and won't directly affect your assets and liabilities as comprehensively as
Milo Tiles LLP is recognized in your standalone financial statements as an "Exceptional Item."
ssociate under non-current assets on the balance sheet.
et profit for the period.
ecting the asset side of your standalone balance sheet.
ated loss affecting retained earnings will indirectly reduce the net worth.
akhs due to the impairment.
affects retained earnings and equity.
received and material losses are identified, additional impairments or adjustments may be required.
prepare for future adjustments, let me know!
pany considered the proposal for in-principal approval for divestment of the entire stake in Anjani Tiles Limited, a subsidiary company o
ssets and liabilities of a subsidiary as "held for sale" under Ind AS 105 (Non-current Assets Held for Sale and Discontinued Operations
Non-current Assets Held for Sale" and "Liabilities Associated with Non-current Assets Held for Sale" in the consolidated balance sheet.
balance sheet.
e profit or loss statement.
ognized upon sale.
equity/profit, further reducing net asset value.
ng treatment or reporting disclosures, let me know!
o non receipt of financial information from the Associate. Also, as against the total Investment of 806 Lakhs the management has
ties as comprehensively as a subsidiary divestment would. Here's a breakdown:
ed, a subsidiary company of M/s. Cera Sanitaryware Limited. The Parent has executed SPA (Share Purchase Agreement) on 26th Augus
d Discontinued Operations), it impacts the consolidated financial statements in the following ways:
onsolidated balance sheet.
s the management has provided for an Impairment Loss of 500 Lakhs in the books of accounts which has been disclosed
Agreement) on 26th August, 2021 for sale of all equity and preference shares held in Anjani Tiles Limited to Anjani Vishnu Holdings Ltd
ich has been disclosed as an “Exceptional Item” in the standalone financial statements. In the opinion of the management th
Anjani Vishnu Holdings Ltd. The Parent is committed to a sale plan resulting into impairment loss of 573.80 lakhs and loss of contr
nion of the management the impact of the above matter on the standalone financial statements is not expected to be material and in t
0 lakhs and loss of control of subsidiary company and therefore, has classfied all the assets and liabilities of the subsidiary as held
cted to be material and in these will my assets and liabilities get effected
s of the subsidiary as held for Sale as per Ind AS-105 “Non-current Assets Held for Sale and Discontinued Operations”. because of this
erations”. because of this even my assets in consolidated will go down ? right
UNIT SOLD 1000 (PER UNIT )UNIT ECON
REVENUE 100000 100
JESA REVENUE WESA YA C1 20000 20
FIXED C2 25000 25
SEMI VARIABLE C3 20000 20
PROFIT 35000 35
0
COMMON SIZE YOY UNIT SOLD 1100 (PER UNIT )UNIT ECON COMMON SIZE
100% 10% REVENUE 110000 100.00000 100%
20% 10% C1 22000 20.00000 20%
25% 0% C2 25000 22.72727 23%
20% 2% C3 20400 18.54545 19%
35% 22% PROFIT 42600 38.72727 39%
VOLUME SOLD 100 100
120 20%
PRIE 10
14 40%
1000 8.00%
1680
68%
1000 1150
15%
R=P*Q PRICE 100
REVENUE 1000
QUANTITY 10
104
1150
11.05769
1144
