Cera Sanitaryware conducted the conference call for Q3 FY22:
Here are the concall highlights:
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Here are the concall highlights:
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Business Updates:
โข Demand remain robust and mgmt expect the demand to remain robust for medium term.
โข Home Upgradation market is also going robust.
โข Dealership & Vendors market is growing well.
โข Freight Rate: 7K $ per container. These are creating impact in export.
โข Demand remain robust and mgmt expect the demand to remain robust for medium term.
โข Home Upgradation market is also going robust.
โข Dealership & Vendors market is growing well.
โข Freight Rate: 7K $ per container. These are creating impact in export.
Domestics Market:
โข Export market got impacted due to freight cost, however domestic market is showing good demand growth.
โข Tiles business is still an outsourcing business and there will remain small part of business as of now.
โข Export market got impacted due to freight cost, however domestic market is showing good demand growth.
โข Tiles business is still an outsourcing business and there will remain small part of business as of now.
Revenue Share:
- Sanitaryware: 53% (47% on YoY)
- Faucetware: 35%. (52% on YoY)
- Tiles: 10% (-46 on YoY)
- Wellness 2% (- 4% on YoY)
Value Split:
Sanitaryware
- Entry Level: 29%
- Mid Level: 13%
- Premium: 57%
Facuvetware
- Entry Level: 30%
- Mid Level: 47%
- Premium: 23%
- Sanitaryware: 53% (47% on YoY)
- Faucetware: 35%. (52% on YoY)
- Tiles: 10% (-46 on YoY)
- Wellness 2% (- 4% on YoY)
Value Split:
Sanitaryware
- Entry Level: 29%
- Mid Level: 13%
- Premium: 57%
Facuvetware
- Entry Level: 30%
- Mid Level: 47%
- Premium: 23%
Price Hike
Sanitaryware:
- 3-5% in Aug 20
- 5-7% in Feb 21
- 4% in August 21
- 10% in Nov 21
Total price hike: 26%
Faucetware:
- 8-10% in Feb 21
- 10% in Aug 21
- 5.5% in Dec 21
โข Price Hike by Cera is as per the increase in RM cost with certain time lag.
Sanitaryware:
- 3-5% in Aug 20
- 5-7% in Feb 21
- 4% in August 21
- 10% in Nov 21
Total price hike: 26%
Faucetware:
- 8-10% in Feb 21
- 10% in Aug 21
- 5.5% in Dec 21
โข Price Hike by Cera is as per the increase in RM cost with certain time lag.
Raw Material:
โข On Sanitaryware, key items such as China Clay, PoP etc which constitutes 95% of RM price rise was 1%. This create niche of Cera in procuring RM.
โข High reliance on renewable energy helped maintaining cost, as 90% of energy is procured from renewable source.
โข On Sanitaryware, key items such as China Clay, PoP etc which constitutes 95% of RM price rise was 1%. This create niche of Cera in procuring RM.
โข High reliance on renewable energy helped maintaining cost, as 90% of energy is procured from renewable source.
Gas prices Rise:
- GAIL price: Increase from 9.5Rs cubic mt. to 13Rs. 44% of gas supply.
- Sabarmati, BPCL, GSPC: 45Rs to 70Rs. 55% of gas supply
โข Cost of corrugated boxes has increase by 3%.
- GAIL price: Increase from 9.5Rs cubic mt. to 13Rs. 44% of gas supply.
- Sabarmati, BPCL, GSPC: 45Rs to 70Rs. 55% of gas supply
โข Cost of corrugated boxes has increase by 3%.
Capacity Utilization:
- Sanitaryware: 103%
- Faucetware: 99%
Outsourcing:
- Sanitaryware: 59% (Manufacturing: 41%)
- Faucetware: 55.5% (Manufacturing: 45%)
โข With focus on optimum production, inventories are expected to rise in order to serve customer at viable price.
- Sanitaryware: 103%
- Faucetware: 99%
Outsourcing:
- Sanitaryware: 59% (Manufacturing: 41%)
- Faucetware: 55.5% (Manufacturing: 45%)
โข With focus on optimum production, inventories are expected to rise in order to serve customer at viable price.
Other:
โข Expanding the dealer networks as mentioned in image
โข Q3 Inventory Days remain 66.5 days (53 YoY)
โข Net Working Capital Days 60.5 days (61 YoY)
โข Cash increased too 523cr compare 403 cr in Q2
โข FY22 CAPEX Budget: 17.2cr (6.7cr in Sanitaryware, 4.4 cr in Faucetware)
โข Expanding the dealer networks as mentioned in image
โข Q3 Inventory Days remain 66.5 days (53 YoY)
โข Net Working Capital Days 60.5 days (61 YoY)
โข Cash increased too 523cr compare 403 cr in Q2
โข FY22 CAPEX Budget: 17.2cr (6.7cr in Sanitaryware, 4.4 cr in Faucetware)
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