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Cera Sanitaryware soars after Q2 PAT rises 60% YoY

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Cera Sanitaryware jumped 5.23% to Rs 5490.95 after the company reported 60.1% increase in standalone net profit to Rs 42.1 crore on a 23.7% rise in revenue from operations to Rs 393.2 crore in Q2 FY22 as compared with Q2 FY21.

EBITDA improved by 43% to Rs 57.9 crore in Q2 FY22 from Rs 40.5 crore in Q2 FY21. EBITDA margin was 14.7% as on 30 September 2021 as against 12.7% as on 30 September 2020.

Vikram Somany, chairman & managing director, said, The combination of benign interest rates, and the pandemic-induced preference for larger spaces, supported by Government incentives for the real estate sector have provided a significant and sustainable tailwind. Customer inclination towards home upgradation and home improvement is serving to sharply elevate demand for our products.

We are focused on serving this demand by actively managing our production to operate at high utilization levels. Our strategy of steadily investing and upgrading manufacturing capabilities over the last few years has enabled us to deliver high value, innovative and complex products at scale. This is also insulating us from supply chain disruption being witnessed across the industry due to constraints on imports.

There are challenges from the increase in costs of certain inputs like natural gas and metals. In addition to partly mitigating these pressures through operating leverage gains and pricing power monetization as we have initiated a price hike program across all businesses.

New additions to our leadership team will expand the management bandwidth of the organization. We have fortified the existing talent pool of the organization by welcoming Anupam Gupta from Grasim Industries as executive director (technical) on the board of the company. Gupta has been with the Aditya Birla Group for over eighteen years across India and international locations, of which the last eight years was at Halol, Gujarat.

Ajay Jain, from HSIL and earlier Kohler, has taken over as vice president - faucetware manufacturing. V K Murthy has taken over as president (marketing) after 25 years with HSIL. Mahesh Taparia has joined Cera as Deputy CFO after 18 years in HDFC Bank.

Parthiv Dave, the managing director and CEO of SIAMP India, is in the process of joining Cera as President (Sales & Strategic Affairs). This will enable us to remain ahead of the requirements of the organization.

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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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Tue, October 26 2021. 13:09 IST