Cera Sanitaryware (532443) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 revenue reached INR 490 crores (₹49,255.70 lakhs), up 6.3% year-over-year, with profit after tax at INR 68 crores (₹6,861.36 lakhs), up 19.7% year-over-year, and EBITDA at INR 88 crores, a marginal 0.8% increase.

• Market pressures persisted due to an extended monsoon, but gradual demand recovery is expected in H2 FY25.

• Strategic price increases (6% for faucets, 1% for sanitaryware) were implemented in September 2024 to offset rising input costs, especially brass.

• Expansion in luxury and premium segments continues, with new product development accounting for 34% of Q2 sales.

• The Board approved and completed a buyback of 1,08,333 equity shares at INR 12,000 per share, totaling INR 130 crores (₹12,999.96 lakhs).

Financial highlights

• Q2 FY25 revenue: INR 490 crores (up 6.3% YoY); EBITDA: INR 88 crores (up 0.8% YoY); EBITDA margin: 17.3% (down 110 bps YoY).

• Profit after tax: INR 68 crores (up 19.3% YoY); EPS: INR 52.44 (vs. INR 43.74 YoY).

• H1 FY25 revenue: INR 888 crores (flat YoY); EBITDA: INR 160 crores (down from INR 171 crores YoY); PAT: INR 115 crores (up from INR 113 crores YoY).

• Cash and cash equivalents as of September 30, 2024: INR 659 crores, down 12.3% YoY, mainly due to share buyback.

• Standalone and consolidated return on equity remains robust, supported by strong profit growth.

Outlook and guidance

• High single-digit revenue growth expected for FY25, with 20% annual growth targeted for FY26 and FY27 to reach INR 2,900 crores by March 2027.

• Margins anticipated to recover to 15%-17% in H2 FY25, supported by price hikes and improved volume absorption.

• No revision to long-term revenue guidance; recovery expected in both project and retail segments.

• The company continues to focus on domestic market growth and operational efficiency.