PL First Cut – Cera Sanitaryware Q2FY24

PL First Cut – Cera Sanitaryware Q2FY24 – Praveen Sahay – Research Analyst, Prabhudas Lilladher Pvt Ltd

Cera Sanitaryware Q2FY24 First Cut: Better than expected, Revenue growth and operating margins

(CMP: Rs8,138 | MCap: Rs105.8bn | ACCUMULATE)

➡️ Revenues grew by 11.9% YoY to Rs4.6bn (PLe:Rs4.5bn), 3% above our estimate and in line with Cons. estimates.

➡️ Gross margins contracted by 290bps YoY to 52.9%.

➡️ EBITDA grew by 15.8% YoY to Rs765mn (PLe:Rs722mn), 5.9% above our estimates, 0.6% below cons. estimates. EBITDA margin expanded by 60bps YoY to 16.5%. (PLe:16.1). The margin improvement was on account of improvement in productivity and through effective cost optimization measures.

➡️ PBT grew by 13.4% YoY to Rs772mn (PLe:Rs745mn).

➡️ Adjusted PAT grew by 13.1% YoY to Rs574mn (PLe:Rs558mn), 2.9% above our estimate vs 4% below Cons. estimates

➡️ Cash and cash equivalents were Rs 7.1bn Q2FY24.