During Thursday's intraday trade, shares of Cera Sanitaryware climbed by nearly 2.71%, reaching a new all-time high of ₹6,911 apiece, following the company's healthy performance in the March quarter.
The company, which is a manufacturer of sanitaryware, faucets, and tiles, reported yet another strong quarter, posting its highest quarterly revenue and also reporting its highest-ever quarterly net profit.
The net profit has been growing steadily since the first quarter of FY23. It posted a net profit of ₹40 crore in Q1 FY23, ₹56 crore in Q2 FY23, and ₹56 crore in Q3 FY23. In the March quarter, the net profit came in healthy at ₹63 crore, a growth of 21.15% YoY and 12.5% QoQ.
The revenue from operations during the quarter came in at ₹530 crore, a growth of nearly 20.72% YoY. The Sanitaryware and Faucetware divisions registered a strong growth of 18% and 29% YoY in the March quarter, they made up 53% and 35% of the Q4FY23 sales, respectively.
The SW and FW business segments are seeing increased demand in the residential housing market as well as the home improvement market, as per the analysts.
It reported an operating profit of ₹85 crore for the March quarter, an increase of 3.65% when compared to ₹82 crore in the corresponding quarter of the last fiscal. The EBITDA margin came in lower at 16% compared to 19% in Q4FY22.
Earnings per share (EPS) improved to ₹48.39 in Q4FY23 from ₹40.04 in Q4FY22. In the October–December quarter, the EPS stood at ₹43.34.
For the entire 2022–23 period, Cera Sanitaryware posted a 24.6% growth in top line at ₹1,796 crore as compared to the 1,442 crore registered in 2021–22. Operating profit margin for FY 23 came in at ₹323 crore, an increase of 32% over FY 22’s EBITDA of ₹244 crore.
While the profit after tax stood higher at ₹210 crore in FY23, an increase of 41% over the FY22 PAT of 149 crore.
Commenting on the performance, Mr. Vikram Somany, Chairman and Managing Director, said, "We have focused on driving an improved product mix with new products comprising products launched over the last 3 years, which represent 34% of the turnover in Q4FY23. Efforts to improve productivity at our plants combined with cost optimization measures have elevated our EBITDA margin in a sustainable manner."
"Looking ahead, we are confident that our diverse product offerings, extensive distribution network, well-established brand recognition, strong financial standing, and expansion plans will enable us to achieve sustained growth in our key business segments," he added.
The stock delivered a gain of 8.12% in CY22, rising from ₹4,888 apiece to ₹5,207. However, it has experienced significant growth since the start of FY23, with a return of more than 30% so far. The largest monthly gain of 23.66% was recorded in February.
15 analysts polled by MintGenie on average have a 'buy' call on the stock.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.