Cera Sanitaryware declines as Q3 PAT slips 10% YoY to Rs 51 cr

Cera Sanitaryware fell 4.63% to Rs 7,658.70 after the company's standalone net profit declined 9.74% to Rs 50.88 crore in Q3 FY24 as against Rs 56.37 crore posted in Q3 FY23

Revenue from operations decreased 4.17% year on year (YoY) to Rs 436.72 crore in the quarter ended 31 December 2023.

Profit before tax for third quarter of FY24 stood at Rs 64.85 crore, down by 16.11% from Rs 77.30 crore recorded in corresponding quarter last year.

For Q3 FY24, EBITDA (including other income) slipped 18.5% to Rs 59.4 crore as compared with Rs 72.9 crore posted in same quarter previous fiscal.

During the quarter, EBITDA margin reduced to 13.6% as compared with 16% posted in Q3 FY23.

Vikram Somany, chairman & managing director, said, Our sanitaryware and faucetware divisions, contributing 52% and 36% to our Q3 FY24 revenue, witnessed a decrease of 8% and increase of 5%, respectively. This quarters performance was marked by a challenging market-led slowdown characterized by subdued demand across key markets. Despite these challenges, the company remains confident in its strong fundamentals and maintains optimism in its overall growth outlook.

Our recently commissioned brownfield faucetware capacity, operational since the previous quarter, is demonstrating positive performance. A recent notable achievement was the acquisition of a substantial portion of land for our upcoming sanitaryware facility in Gujarat. We are enthusiastic about this upcoming addition to our infrastructure, emphasizing our commitment to broadening our portfolio of value-added products.

These products will be exclusively manufactured within our facility, leveraging advanced technical capabilities and adhering to rigorous quality standards. While we will continue to outsource low-end products, typically those that do not require specialized expertise, this strategic approach ensures that our commitment to excellence remains focused on in-house production for more intricate and sophisticated offerings.

Cera Sanitaryware is mainly engaged in manufacturing of ceramic sanitary ware and faucet ware along with trading of of sanitary ware, faucet ware, ceramic tiles, kitchen sinks and bath wellness products.

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