Kajaria FY2006 PAT up 11 percent to Rs 281 72 million
Released on: January 9, 2008, 10:02 pm
Press Release Author: Renuka Chaudhary
Industry: Construction
Press Release Summary: Outlook for FY2007-Strong- volume growth to drive performance
Kajaria Ceramics Limited (Kajaria), India\'s leading ceramic tile manufacturer, today announced its results for FY2006 (audited) and Q4 FY2006.
Press Release Body: Outlook for FY2007-Strong- volume growth to drive performance
Kajaria Ceramics Limited (Kajaria), India\'s leading ceramic tile manufacturer, today announced its results for FY2006 (audited) and Q4 FY2006. Commenting on the performance, Mr. Ashok Kajaria, Chairman and Managing Director, Kajaria Ceramics Limited, said, “We are looking at the future with confidence and optimism. Our business performance remained stable throughout the year with the strengthening of our market position.Our expansion of 8.4 million SQM at its existing location at Bhiwadi in Rajasthan is being implemented as scheduled. The expansion is expected to be completed by September 2006.With a competitive cost structure, wide range of products and increasing customer endorsement, we believe that we will be able to mitigate any challenges and grow our business going forward.
FY2005 results review FY2006 marked a better financial performance for Kajaria Ceramics. Revenues increased by 17% to Rs. 3518 million. PBIDT was at Rs. 685 million as against Rs. 623 million in FY 2004-05. PAT was higher by 11% to Rs. 282 million resulting in an EPS of Rs.3.83 (on Rs. 2 paid up equity share). Given the improved financial performance the board has recommended a dividend of 35% for the FY 2005-06. Q4 FY2006 results overview
Revenues for the quarter were up by 35% to Rs 1162 million. PBIDT was up by 8% to Rs. 200 million. PAT was higher by 50% to Rs. 89 million resulting in an EPS of Rs. 1.21 (on Rs. 2 paid up equity share) Kajaria Ceramics has opened its office in Sharjah; this will function as marketing arm to take care of export business in the Gulf. Kajaria is the largest exporter of ceramic tiles. Out of the total exports of Rs 1 Billion from India; Kajaria has contributed to the extent of Rs 300 million in FY 2005-06.
Growth plans update Kajaria Ceramics has 2 plants one each at Sikandrabad (UP) and at Bhiwadi (Rajashthan). The company presently has a capacity of 18 million square meters and is in the process of implementing a capacity expansion of 8.4 million SQM at its existing plant at Bhiwadi in Rajasthan. The present expansion is being carried out a cost of Rs.123 crores with a mix of debts of Rs 80 crore and internal accrual of Rs 43 crore. The expansion is expected to be completed by September 2006. After this expansion Kajaria Ceramics would become the No. 1 producer of ceramic wall and floor tiles in the country. It will allow the Company to maintain leadership in all key segments that have attractive continued and future growth potential.
Outlook for FY2006 The operating and financial outlook for FY2006 remains positive. The customer demand in both local and global markets is encouraging. It is estimated that the domestic market will continue to grow at over 15% per annum for the next few years. Kajaria Ceramics expects to grow at a CAGR of 30% in the next few years and further strengthen our leadership position. The expansion would contribute to operations H2FY2007 onwards enabling a better performance scenario for the Company in the fiscal under progress. The Company is aiming to deliver volume growth in FY2007 to be able to deliver an all round stronger performance. The outlook remains positive given the intrinsic strengths of the Company\'s operations. Certain statements in this document may be forward-looking statements. These include statements about such matters as future production and sales of our products, future prices and sales of and demand for our products, future operational and financial performance, strategic plans, and impacts of regional and global economic conditions. Such forward-looking statements are subject to certain risks and uncertainties like government actions, local political or economic developments,technological risks, dependence on certain customers and other factors that could cause our actual results to differ materially from those contemplated by the relevant forward looking statements. Kajaria Ceramics Limited undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.
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