Cera Sanitaryware Ltd, bathroom solutions provider and India’s third largest player in sanitaryware products, on Wednesday said it has posted a 44 per cent increase in net profit and 52 per cent increase in top line in the second quarter of 2012-13 ended September 30, as compared to the corresponding period in the last financial year.
While the net income from operations was Rs 111.38 crore (Rs 73.28 crore), net profit stood at Rs 11.02 crore (Rs 7.65 crore), Vikram Somany, Chairman and Managing Director, said here. The increase in business was due to increased demand.
With a CAGR of 25 per cent over the last five years, the company is expecting to increase its turnover from Rs 319 crore in 2011-12 to nearly Rs 500 crore this fiscal, he said.
On Wednesday, the company’s share price at the BSE closed 0.01 per cent up at Rs 363.85.
Cera Sanitaryware has also embarked upon a three-year rolling plan to invest Rs 150 crore to expand its current capacity at the Kadi (Mehsana, Gujarat) plant for sanitaryware products from the existing two million pieces to 2.7 million pieces by January 2013, scalable up to three million pieces.
The company is targeting first-year sales of Rs 20 crore in the tiles business and Rs 60 crore next year with the recent launch of high-definition digital wall tiles with matching floor tiles, besides digital polished glazed vitrified tiles, said Somany. Cera Sanitaryware will be using natural gas as fuel in the manufacturing process.
Focusing on domestic demand, the company is currently producing 55 per cent of its products at its Kadi plant and outsourcing 45 per cent to other parties, including those from China and Oman. The tiles production will also remain outsourced.
