Excerpt from AR 2011-2012
a) Turnover 39% up ( over 2010-2011). CAGR over 5 years-26%
b) EBIDTA36% up ( over 2010-2011). CAGR over 5 years-29%
c) Net Profit33% up ( over 2010-2011). CAGR over 5 years-60%
2). It introduced game changing digital printing technology in ceramic and glazed vitrified tiles.
3). It adopted the low cost joint-venture route. It minimizes the gestation period for revenue generation with a superior ROI (Soriso Ceramic,Jaxx vetrified( 51% stake),Vennar Ceramics, AP ( 51% stake) are JVs)
4.Kajaria expanded capacities at it’s existing units-Gailpur by 6MSM and Sikandrabad by 2.30 MSM
5). Doubled the Soriso unit capacity with in a year of acquisition. Full impact will be visible in 2012-2013
6). Asia is the largest producer ( 66.9 %) and largest consumer of ceramic products ( 64.4 %)
7). Customers of Kajaria includes Mantri, DLF, Ansal, Vodafone among the others.
1). Book value is 38.31 ( It is trading at ~5X of BV) though BV is up by 26.7% ( over 2010-2011)
2). Debt-Equity ratio .86 ( Down 31% over 2010-2011 from 1.26, Down 60% over 2007-2008 from 2.18)
In my opinion, If it has performed well when govt was all set to squeeze the liquidity, interest rates were roaring, rupee value was declining, all factors led to increase in raw material cost. It has taken enormous expansion plans since last two years which I hope will start giving results soon.
Companiesare trying to establish offices in Tier-2 and Tier-2 cities so the market is huge as the competitors are. Kajaria is successful in maintaining balance between lowering the debt-equity ratio and at the same time increasing the bottom line as well as top line. It is really hard.