Latest news with #VikasKothari
Yahoo
12-05-2025
- Business
- Yahoo
Cera Sanitaryware Ltd (BOM:532443) Q4 FY25 Earnings Call Highlights: Strong Revenue Growth Amid ...
Revenue: INR578 crores in Q4 FY25, a year-on-year growth of 5.7%. EBITDA: INR121 crores with margins at 20.4% in Q4 FY25. Faucetware Revenue Growth: 9.6% year-on-year increase. Sanitaryware Revenue Contribution: 48% of total revenues in Q4 FY25. Faucetware Revenue Contribution: 40% of total revenues in Q4 FY25. Profit After Tax: INR86 crores, a 14.1% increase from INR75 crores in Q4 FY24. EPS: INR66.36 in Q4 FY25, up from INR57.9 in Q4 FY24. Net Revenue for FY25: INR1,915 crores, a 2.4% increase from INR1,871 crores in FY24. Cash and Cash Equivalents: INR719 crores as of March 31, 2025. CapEx for FY25: INR22.84 crores. New Store Launches: Over 342 new stores launched in FY25. Working Capital Days: Increased from 60 days to 80 days in Q4 FY25. Release Date: May 10, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Cera Sanitaryware Ltd (BOM:532443) reported a year-on-year revenue growth of 5.7% in Q4 FY25, reaching INR578 crores. The company achieved an EBITDA margin improvement to 20.4%, driven by effective cost management and operational efficiency. The Faucetware segment saw a robust year-on-year growth of 9.6%, supported by resilient demand and a wider range of SKUs. Cera expanded its retail footprint significantly, launching over 342 new stores and expanding its Cera Experience Centers across multiple cities. The company launched approximately 431 new SKUs and established a dedicated design center to drive innovation in product categories. The operating environment in Q4 remained subdued with continued softness in consumer demand across end markets. Sanitaryware segment revenues decreased by 1.6% year-on-year, reflecting sluggish demand in this category. Working capital days increased from 60 to 80 days, primarily due to changes in credit policy and increased receivable days. Gas prices increased during the quarter, impacting cost structures, although the company managed to keep the weighted average cost below the industry average. The company faced pricing pressure due to oversupply and overcapacity in the market, leading to increased discounting. Q: Can you elaborate on the margin improvement and its sustainability? A: Vikas Kothari, CFO: The margin improvement in Q4 was due to operational efficiency and cost management, with a 1.5% increase driven by a 0.10% improvement in gross margin, 0.5% savings in publicity, and 0.9% cost-effective measures. We expect margins to remain within the 15% to 16% range. Q: What caused the increase in working capital, particularly receivables? A: Deepak Chaudhary, VP, Finance and Investor Relations: The increase in receivables is not due to project business but a change in the cash credit policy, reducing cash discount sales from 74% to 67%. Receivable days have already decreased from 44 to 38 days by April. Q: Why has there been a persistent slowness in demand, and is it more prevalent in any specific segment? A: Devrishi Singh, Investor Relations: The slowness is mainly in the retail sector, while project sales have increased. The sluggishness is more pronounced in the Sanitaryware segment compared to Faucetware, where we have seen growth due to our smaller market share. Q: Can you provide insights into the Tiles business and its margins? A: Vikas Kothari, CFO: Tiles contribute 10% of our revenue and are fully outsourced. The focus is on providing a complete solution to consumers. Margins in the Tiles business are lower than in Sanitaryware and Faucetware, typically in single digits. Q: What is the company's strategy regarding export opportunities? A: Deepak Chaudhary, VP, Finance and Investor Relations: Exports currently constitute a small portion of our revenue. While there is potential due to tariff situations, we do not expect significant growth in exports in the near term. Q: How does the company plan to achieve its revenue target of INR2,900 crores by FY27? A: Vikas Kothari, CFO: The target depends on market conditions improving. Despite subdued demand, our project pipeline is strong, and we aim to outperform the market by 6% to 7% once retail momentum improves. Q: What are the reasons for the slower volume growth in the industry despite steady real estate cycles? A: Deepak Chaudhary, VP, Finance and Investor Relations: The industry faces pricing pressure due to oversupply and overcapacity. We have balanced this with efficiency and cost management. We expect project business to translate into higher numbers in FY26. Q: How is the company addressing the premiumization strategy with brands like CERA Luxe and Senator? A: Vikas Kothari, CFO: We are focusing on premiumization with CERA Luxe and Senator, aiming for them to contribute 10% of revenue in the next three years. This includes a mix of in-house manufacturing and outsourcing, with dedicated teams and flagship stores to enhance market presence. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Mint
08-05-2025
- Business
- Mint
Multibagger small-cap stock jumps over 8% on order win update. Do you own?
Multibagger small-cap stock: OM Infra share price surged more than 8% during Thursday's trading session after securing an order worth ₹ 129 crore for a Water Infrastructure Project in Uttar Pradesh. The duration of the project is set for 24 months. According to the company's filing with the exchange, this contract underscores Om Infra's expanding role in essential infrastructure projects and emphasizes its ongoing dedication to providing sustainable, comprehensive solutions. Vikas Kothari, the Managing Director and Chief Executive Officer of Om Infra Ltd, expressed that by maintaining its emphasis on managing water resources, enhancing irrigation, and promoting renewable energy, Om Infra is in a strong position to contribute to national programs like the Jal Jeevan Mission and the development of hydroelectric power. 'We expect this project to contribute positively to our revenue and profitability, while driving long-term value for our stakeholders,' said Kothari. Last month, the company secured an order valued at ₹ 448 crore for water infrastructure projects in Uttar Pradesh. The initial project was for the Moradabad Circle, while the second contract pertained to the Lucknow Circle. Om Infra is a company dedicated to infrastructure development, primarily specialising in Engineering, Procurement, and Construction (EPC) services in the water and energy industries. Additionally, the company is involved in providing integrated renewable energy solutions, emphasizing its dedication to sustainability and innovation in the field of infrastructure development. OM Infra share price has increased by more than 800% over the last five years, significantly benefiting its investors. Nevertheless, the stock experienced just a gain of 2.56% in the past week. Over the last quarter, the stock has dropped 16.35%, and in the past year, it has declined by 8.23%. OM Infra share price today opened at an intraday low of ₹ 114 apiece on the BSE, the stock touched an intraday high of ₹ 122.30 per share. Anshul Jain, Head of Research at Lakshmishree Investments said that OM Infra share price is forming a 72-week-long Head and Shoulder pattern on the weekly chart with a crucial neckline placed at ₹ 98. A breakdown and close below ₹ 98 will confirm the bearish setup, potentially triggering a sharp decline. Given the length of the pattern and the weak structure, a breach below the neckline could lead to a steep fall towards the ₹ 65 level. Bulls must defend ₹ 98 to avoid further downside. Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
