Confident of clocking 30% revenue growth in FY15: Cera

Written By Unknown on Senin, 28 April 2014 | 16.02

CERA's Q4 total income grew 38.1 percent to Rs 218 crore against Rs 158 crore and profit after tax increased 38.8 percent to Rs 19.3 crore against Rs 13.9 crore on a year-on-year basis.

this year we started tiles that are 100 percent outsourced and there also we have got very good growth.

SC Kothari

CEO

Cera Sanitaryware

Competitive pricing with robust marketing efforts have helped CERA Sanitaryware  post a strong result in its fourth quarter ended March 31.

The company's total income grew 38.1 percent to Rs 218 crore against Rs 158 crore and profit after tax increased 38.8 percent to Rs 19.3 crore against Rs 13.9 crore on a year-on-year basis. CERA has also reported a standalone sales turnover of Rs 218.19 for the quarter.

CERA's stock price, which is currently at Rs 871, has doubled in the past one year (Rs 438) and has given a 26 percent returns since January 1.

The company had a reduced impact of rupee depreciation due to price hikes taken during the year.

Commenting on the performance, CEO SC Kothari said that he expects to maintain a 30 percent revenue growth in FY15 too, if all goes well. CERA is also focusing on developing one-stop-shop model.

Kothari sees margins improving going forward and expects the topline growth to be stable around 30 percent.

Below is the interview of SC Kothari with Ekta Batra & Reema Tendulkar on CNBC-TV18.

Reema: Q4 was strong, revenue growth of 38 percent; in FY14 as well you have delivered a revenue growth of close to about 36 percent. What is FY15 looking like in terms of revenue growth?

A: Barring unexpected circumstances we would maintain this growth above 30 percent in '14-15 also.

Ekta: Can you take us through what the product mix looks like for CERA Sanitaryware, where was your maximum growth which came in through this quarter and in terms of pricing as well?

A: Basically we are sanitaryware manufacturers. Our capacity to manufacture is 2.7 million and this year our production was 2.75 million and apart from that we have got a faucet ware unit where our capacity is 2,500 pieces per day and that also we produce at the rated capacity. Therefore, our major growth has come from sanitaryware and faucet apart from that we are importing very high value item from chain under our brand name by giving our design, so that has also given us good growth. Plus, this year we started tiles that are 100 percent outsourced and there also we have got very good growth. So combining all these factors our growth is 36 percent.


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