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Please refer to important disclosures at the end of this report 1

Y/E March (` cr) 4QFY13 3QFY13 % chg (qoq) 4QFY12 % chg (yoy)Total operating income 158 128 23.4 100 57.6Operating profit 21 20 1.3 16 30.1

OPM (%) 13.1 16.0 (287)bp 15.9 (278)bp

Adj. PAT 14 12 16.7 9 50.3Source: Company, Angel Research

Cera Sanitaryware (CSL) reported a strong set of numbers for 4QFY2013. The

top-line surged by 57.6% yoy to `158cr, 21.5% higher than our expectation of

`130cr. The EBITDA grew by 30.1% yoy to `20.8cr, in line with our estimate of

`20.7cr. The EBITDA margin dipped by 278bp yoy and came in at 13.1% mainlydue to the rise in raw material cost. Net profit grew by 50.7% yoy to `14cr on

account of higher other income and a lower tax expense for the quarter.

Expanded capacity and high brand visibility to aid revenue growth

CSL has expanded its capacity of sanitaryware unit from 2.0mn pieces per annum

(p.a.) to 2.7mn pieces p.a. in FY2013 and is planning to expand it further to 3mn

pieces p.a. in FY2014. The expansion will thus enable CSL to en-cash on the

opportunity emerging from the consistently growing sanitaryware demand owing

to factors like urbanization, rising standard of living, changing lifestyle, growing

construction activities etc. Simultaneously, high brand visibility, due to consistent

marketing efforts (marketing cost has grown at 36% CAGR over FY2008-12), isexpected to further boost revenue growth going forward.

Outlook and valuation

We expect CSLs consistent marketing efforts coupled with expansion of its

product portfolio (in the tiles segment) to help it post a revenue CAGR of 27.6%

over FY2013-15E to`795cr. The EBITDA and net profit are expected to grow at a

CAGR of 19.8% and 18.3% over the same period to `108cr and `65cr

respectively. At the current market price, the stock is trading at a PE of 8.7xFY2015E. As we rollover to FY2015, we maintain our Buy recommendation with arevised target price of `562, based on a target PE of 11x for FY2015E.Key financials (Standalone)

Y/E March (` cr) FY2011 FY2012 FY2013 FY2014E FY2015ENet sales 243 319 488 630 795% chg 27.0 31.5 52.7 29.1 26.2

Adj. net profit 27 32 46 54 65% chg 38.4 16.7 44.3 17.1 19.5

OPM (%) 18.8 16.7 15.4 14.4 13.6EPS (`) 21.7 25.3 36.5 42.8 51.1

P/E (x) 20.6 17.6 12.2 10.4 8.7

P/BV (x) 5.1 4.1 3.1 2.5 2.0

RoE (%) 27.4 25.5 29.0 26.6 25.2

RoCE (%) 25.6 23.2 26.7 25.6 25.0

EV/Sales (x) 2.3 1.8 1.2 0.9 0.7

EV/EBITDA (x) 12.1 10.8 7.7 6.1 5.1

Source: Company, Angel Research

BUYCMP `447

Target Price `562

Investment Period 12 Months

Stock Info

Sector

Net debt 13

Bloomberg Code

Shareholding Pattern (%)

Promoters 55.5

MF / Banks / Indian Fls 5.0

FII / NRIs / OCBs 13.0

Indian Public / Others 26.5

Abs.(%) 3m 1yr 3yr

Sensex (4.1) 12.6 8.7

CSL 5.8 69.3 258.8

Nifty 5,871

Reuters Code CERA.BO

CRS.IN

Avg. Daily Volume 7,885

Face Value (`) 5

BSE Sensex 19,287

52 Week High / Low 478 / 236

Ceramic products

Market Cap (`cr) 565

Beta 0.3

Twinkle GosarTel: 022- 3935 7800 Ext: 6848Gosar.twinkle@angelbroking.com

Cera SanitarywarePerformance highlights

Result Update | Ceramic Products

April 26, 2013

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Cera Sanitaryware | 4QFY2013 Result Update

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Exhibit 1:4QFY2013 performance (Standalone)

Y/E March (` cr) 4QFY13 3QFY13 % chg (qoq) 4QFY12 % chg (yoy) FY2013 FY2012 % chgTotal operating income 158 128 23.4 100 57.6 488 321 52.2Net raw material 79 54 45.7 39 100.4 214 124 72.4(% of Sales) 50.0 42.3 39.3 43.8 38.7 52.2

Employee cost 16 15 9.9 12 30.9 58 43 36.3

(% of Sales) 10.2 11.5 12.3 11.9 13.3

Other Expenses 42 39 9.0 33 29.5 141 101 39.8

(% of Sales) 26.7 30.2 32.5 28.8 31.4

Total expenditure 137 108 27.6 84 62.8 413 267 54.4Operating profit 21 20 1.3 16 30.1 75 53 40.9OPM (%) 13.1 16.0 (287)bp 15.9 (278)bp 15.4 16.7 (123)bp

Interest 2 2 9.3 1 88.5 7 4 85.3

Depreciation 3 3 4.5 2 23.6 9 8 20.6

Other income 4 2 87.5 2 94.3 9 7 31.6PBT 20 18 9.6 15 34.9 68 49 39.4(% of Sales) 12.4 14.0 14.5 13.9 15.2

Tax 6 6 (4.9) 5 7.6 22 17 28.3

(% of PBT) 28.8 33.2 36.1 31.9 34.6

Reported PAT 14 12 16.7 9 50.3 46 32 45.3PATM (%) 8.8 9.3 9.3 9.5 9.9

Source: Company, Angel Research

Exhibit 2:Actual vs Angel Estimates

Actual v/s Angel's Estimates Actual (` cr) Estimate (` cr) % variationTotal Income 158.0 130.0 21.5EBITDA 20.8 20.7 0.3

EBITDA Margin 13.1 15.9 (277)bp

Adjusted PAT 14.0 11.7 18.9Source: Company

Expanded capacity and high brand visibility aid revenue growth

For 4QFY2013, CSLs top-line surged by 57.6% yoy to`158cr, 21.5% higher than

our expectation of`130cr. The EBITDA grew by 30.1% yoy to`20.8cr, in line with

our estimate of`20.7cr. The EBITDA margin dipped by 278bp yoy and came in at

13.1%. The dip is attributable mainly to the rise in raw material cost. Despite therelatively low growth in EBITDA compared to revenue growth, net profit grew by

50.7% yoy to `14cr on account of higher other income and a lower tax expense

for the quarter.

The top-line for FY2013 grew by 52.7% and came in at `488cr, higher than our

expectation of`460cr. The EBITDA for the year grew by 40.9% to `75.3cr, in line

with our estimate of`75.2cr, while the EBITDA margin dipped by 124 basis points

yoy to 15.4%, owing to higher raw material costs. The company reported a net

profit of`46.2cr, vis--vis our estimate of`44cr, while the net profit margin stood

at 9.5%, lower by 44bp yoy.

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Exhibit 3:Revenue growth on an up-trend

Source: Company, Angel Research

Exhibit 4:Raw material cost dents EBITDA margin

Source: Company, Angel Research

Investment arguments

Companys emphasized focus on marketing and high brand visibility

Owing to continuous marketing activities, that has led to greater visibility of the

Cera brand, the advertisement cost for the company has been consistently

moving northwards. Marketing expenses constitute around 16% of the net sales

and have grown at a 36% CAGR over FY2008-12.

Exhibit 5:Marketing expenses moving northwards

Source: Company

CSL intends to widen its reach by opening more retail formats of Cera Style

Galleries which display the complete range of Cera products. Moreover, CSL had

a massive media campaign during the launch of its new re-designed logo by

employing former Miss Asia Pacific turned actress, Dia Mirza, as the brand

ambassador.

Expansion of product portfolio to complete the package

CSL has announced its entry into the tiles segment which is a logical extension of

its product portfolio, thereby enabling customers to fulfill their entire bathroom

products needs. As per the management, the company is to launch high-definition

digital wall tiles with matching floor tiles, besides digital polished glazed vitrified

tiles, the manufacturing of which would be completely outsourced. Being

75

65 7

3 82 1

00

91

111 1

28

158

28.1 27.3 28.9

37.932.8

40.052.0

55.257.6

0

10

20

30

4050

60

70

0

20

40

60

80

100

120

140

160

180

4QFY11

1QFY12

2QFY12

3QFY12

4QFY12

1QFY13

2QFY13

3QFY13

4QFY13

(%)

(`cr)

Revenue ( LHS) yoy growth (RHS)

12

12

12

14

16

16

18 2

0 21

16.4

18.8

16.0 16.515.9

17.216.5 16.0 13.1

0

2

4

6

8

10

1214

16

18

20

0

3

6

9

12

15

18

21

24

4QFY11

1QFY12

2QFY12

3QFY12

4QFY12

1QFY13

2QFY13

3QFY13

4QFY13

(%)

(`cr)

EBITDA (LHS) EBITDA Margin (RHS)

4.6 4.79.7 9.8

14.55.9 8.6

12.3 13.2

19.3

4.9

8.7

10.613.3

18.2

21.6

43.3 48.0

11.3

43.4

-5

5

15

25

35

45

55

0

10

20

30

40

50

60

FY2008 FY2009 FY2010 FY2011 FY2012

(%)

(`cr)

Advertisement Commssion Distribution % change yoy

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Cera Sanitaryware | 4QFY2013 Result Update

April 26, 2013 4

complimentary products to CSLs existing product portfolio, it would be easy to

penetrate these new products into the market, through utilization of the existing

distribution channels. CSL is aiming at a revenue of`20cr from the tiles segment in

the first year of launch itself.

Increased contribution of sanitaryware in total domestic

expenditure

Owing to changing lifestyles, sanitary products are now perceived as more than

basic necessity. Their role has widened to being status statements; thus

commanding a higher allocation of the spending budgets of individuals. Increase

in disposable incomes of people has been a vital factor supporting the demand for

sanitaryware products.

Also, requirement of personal space and privacy are gaining inevitable place,

subsequently leading to nuclear families. This has led to augmented residentialfigures, thereby increasing demand for sanitary products. This trend is expected to

continue providing sustainable demand visibility for sanitary products.

Capacity expansion of sanitaryware

CSL has expanded the capacity of its sanitaryware unit from 24,000MT (2.0mn

pieces p.a.) to 32,400MT (2.7mn pieces p.a.) in FY2013 and plans to further

expand this capacity to 3mn pieces p.a at a cost of `100cr in FY2014. This will

enable the company to tap and cater to the increasing demand for sanitaryware

products.

Exhibit 6:Capacity utilisation of Sanitaryware unit

Source: Company, Angel Research

102106

85

90 90

0

20

40

60

80

100

120

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

FY2011 FY2012 FY2013E FY2014E FY2015E

(%)

(`

cr)

Installed Capacity Production Capacity Utilization

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Cera Sanitaryware | 4QFY2013 Result Update

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Financials

Following are the key assumptions used to forecast the financials of the CSL:

Exhibit 7:Key AssumptionsParticulars (%) FY2014E FY2015E

Finished Goods: SanitarywareInstalled capacity (MT) 36,000 36,000

Capacity utilisation 90.0 90.0

Sales quantity growth 17.0 17.0

Sales value growth 25.2 25.2

Sale Price/ unit growth 7.0 7.0

FaucetwareInstalled capacity (units) 900 900

Capacity utilisation 40.0 50.0

Sales value growth 25.7 37.5

TilesSales value (`cr) 20.0 30.0

Raw MaterialSanitaryware value growth 28.0 29.0

Traded Goods value growth 2.9 3.7

Sandstone/clay value growth 50.6 29.0

Brass Ignots value growth 13.0 13.0

Source: Company, Angel Research

Exhibit 8:Change in estimates

Y/E March Earlier estimates Revised estimates % changeFY2014E FY2015E FY2014E FY2015E FY2014E FY2015ENet Sales (` cr) 528 795 630 795 19.3 0.0EBITDA Margin (%) 14.6 13.6 14.4 13.6 (18.3) 0.0

EPS (`) 34 51 43 51 24.8 0.0Source: Angel Research

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Net sales to grow at a CAGR of 27.6% over FY2013-15E

With the enhancement in capacity and the recent entry into the tiles segment, net

sales of CSL are expected to grow at a CAGR of 27.6% over FY2013-15 to`795cr

in FY2015E. Sanitaryware contributes ~98% to total sales, which is to reduce to

~94% in FY2015 owing to increased contribution from the faucetware and new

tiles segments.

Exhibit 9:Revenue growth momentum continues

Source: Company, Angel Research

EBITDA to grow at 19.8% CAGR over FY2012-14E

On the back of strong revenue growth, the EBITDA of the company is expected torise from `75cr in FY2013 to `108cr in FY2015, ie at a CAGR of 19.8%. The

operating margin is expected to correct from 15.4% in FY2013 to 13.6% in

FY2015. The dip is mainly on account of rising raw material costs, which the

company is not being able to pass on completely to consumers owing to stiff

competition from cheaply available Chinese substitutes.

Exhibit 10:Rising raw material cost dents EBITDA margin

Source: Company, Angel Research

243 319 488 630 795

27.031.5

52.7

29.1

26.2

0

10

20

30

40

50

60

0

100

200

300

400

500

600

700

800

900

FY2011 FY2012 FY2013 FY2014E FY2015E

(

%)

(`cr)

Net Sales (LHS) yoy growth (RHS)

46 53 75 91 108

18.8

16.715.4

14.4

13.6

0

2

4

6

8

10

12

14

16

18

20

0

15

30

45

60

7590

105

120

FY2011 FY2012 FY2013 FY2014E FY2015E

(%)

(`cr)

EBITDA (LHS) EBITDA Margin (RHS)

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Net profit to grow at 18.3% CAGR over FY2013-15E

A robust operating performance is expected to lead the bottom-line to grow at a

CAGR of 18.3% over FY2013-15 to `65cr. Moreover, owing to capex plans and

entry into new avenues, we expect the debt of the company to rise, still placing thedebt equity ratio comfortably at 0.2x times in FY2015, and interest cost at

manageable levels. Thus the resultant PAT margins are to dip from the current

9.5% to 8.1% in FY2015E.

Exhibit 11:Notable absolute PAT growth

Source: Company, Angel Research

27 32 46 54 65

11.3

10.09.5

8.6

8.1

0

2

4

6

8

10

12

0

10

20

30

40

50

60

70

FY2011 FY2012 FY2013 FY2014E FY2015E

(%

)

(`cr)

PAT (LHS) yoy growth (RHS)

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Cera Sanitaryware | 4QFY2013 Result Update

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Competition

CSL, with a market share of 23%, competes with the market leader - Hindustan

Sanitaryware & Industries (HSIL; ~41% market share) and the unlisted peer Roca

Parryware (~26% market share). CSL with a RoE of 25% and EPS of `51.1 for

FY2015E looks attractive vis--vis its competitor HSIL.

Exhibit 12:Peer comparison

Company Year MCAP Net Sales OPM PAT EPS ROE PE PBV EV/Sales EV/EBITDA(` cr) (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)

CSL FY2014E 565.0 630 14.4 54.1 42.8 26.6 10.4 2.5 6.1 0.9

FY2015E 565.0 795 13.6 64.7 51.1 25.2 8.7 2.0 5.1 0.7

HSIL* FY2014E 694.0 2,011 16.4 107 15.6 9.6 6.5 0.6 0.8 4.5

FY2015E 694.0 2,362 15.8 121 20.3 10.5 5.6 0.6 0.6 4.0

Source: *Bloomberg, Angel Research

Outlook and valuation

We expect CSLs revenue to post a CAGR of 27.6% over FY2013-15E to`795cr.

EBITDA and net profit are expected to grow at a CAGR of 19.8% and 18.3% over

the same period to `108cr and `65cr respectively in FY2015E. At the current

market price of `447, CSL is trading at a PE of 8.7x and EV/Sales of 0.7x on

FY2015E earnings. Considering the expansion and development plans being

undertaken by the company, CSLs returns are expected to rise further and

valuations are likely to become more attractive on a forward basis. As we rolloverto FY2015E, we maintain our Buy recommendation on the stock with a revisedtarget price of `562, based on a target PE of 11x and implied EV/Sales of 0.9x.Exhibit 13:One-year forward PE band

Source: Company, Angel Research

-50

50

150

250

350

450

550

Apr-08

Oct-08

Apr-09

Oct-09

Apr-10

Oct-10

Apr-11

Oct-11

Apr-12

Oct-12

Apr-13

(`)

Price 1.5x 5.5x 9.5x 12.5x

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Cera Sanitaryware | 4QFY2013 Result Update

April 26, 2013 9

Concerns

Risk from un-organized players: The main risk associated in the sanitaryware

segment is from the unorganized and local players. The unorganized

sanitaryware manufacturers enjoy the benefit of nil excise duty and sales taxand hence their products are ~70% cheaper than the organized sector

products. Increase in excise duties from 8% to current 12% will make products

from organized players more expensive.

Advent of foreign brands in India is also becoming a threat since increased

purchasing power may lead to shift in consumer preferences to bigger brands.

Changes in government policy related to housing construction, imports, etc

are bound to impact the industry.

Further slowdown in the housing segment will impact fresh demand for

sanitaryware.

The company

CSL, a Gujarat based company, is the third largest sanitaryware company in the

organized sector with about 22% market share in India. Apart from sanitaryware

and faucets, CSL also deals in the wellness range, consisting high-end and luxury

bath tubs, steam cubicles, shower partitions and shower panels. Of the total sales

volume, ~55% of its products are being produced in-house while the remaining

45% are outsourced from other parties, including those from China and

Oman. The company has also expanded its brand presence to other related

categories like showers, faucets, PVC cistern seat cover, etc. It entered the tiles

segment recently which will be completely outsourced.

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Sanitaryware industry

The Indian sanitaryware Industry, estimated at around`1500-1800cr, contributes

to ~8% of the worlds sanitary production. In India, the organized market

dominates the high-end products segment but a majority share is still captured by

the unorganized segment in the low-end products segment. The industry has a

sustained growth rate of 12-14% p.a. due to increasing housing demand,

purchasing power and consciousness towards hygiene. India is emerging as the

second largest sanitaryware market in the world and is expected to witness robust

growth owing to following:

Low penetration in Indian sanitation coverage

Considering Indias dense population, its sanitation coverage is only ~40%, which

is considered to be one of the lowest in the world, thus increasing risk of health

hazards and epidemics. According to a recent report by UNICEF, 638 millionpeople in India lack proper sanitation facilities. The government of India is keenly

focusing on improving the level of sanitation in the country by introducing housing

policies, sanitation policies, public toilets schemes, 100% FDI in real estate, etc

which are being termed as some of the major factors contributing for the growth of

sanitaryware market in India. With increasing awareness towards improving public

health, the sanitaryware segment is to enjoy high attention.

Change in lifestyle and awareness in population

Witnessing a paradigm shift in the change in middle and upper class lifestyles in

small but significant ways, rising per capita income, increasing awareness abouthealth and fitness and changing consumer mindsets will drive the demand for

premium sanitaryware products. The concept of making a clean and hygienic toilet

is growing rapidly in those rural areas where a toilet did not even exist until a few

years ago.

Wide exports horizon

Indian sanitaryware products are very competitive because of their low production

cost, and hence exports from India are also increasing every day. Seven foreign

brands like H&R Johnson, Roca and Kohler to name a few, have established their

operations in India.

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Profit and Loss (Standalone)

Y/E March (` cr) FY2011 FY2012 FY2013 FY2014E FY2015EGross sales 256 336 513 662 835

Less: Excise duty 13 16 25 32 41Net Sales 243 319 488 630 795

Other operating income - - - - -Total operating income 243 319 488 630 795% chg 27.0 31.5 52.7 29.1 26.2

Net Raw Materials 86 119 214 283 363

% chg 29.6 38.0 79.4 32.2 28.4

Other Mfg costs 15 - - - -

% chg 18.8 - - - -

Personnel 28 43 58 75 94

% chg 21.1 55.7 34.4 29.1 26.2

Other 68 104 141 182 229

% chg 28.3 51.8 35.7 29.1 26.2

Total Expenditure 197 266 413 539 687

EBITDA 46 53 75 91 108% chg 26.8 16.7 41.1 20.4 19.2

(% of Net Sales) 18.8 16.7 15.4 14.4 13.6

Depreciation & Amortisation 7 8 9 13 16

EBIT 39 46 66 78 92% chg 30.8 16.5 44.4 18.5 18.3

(% of Net Sales) 16.1 14.3 13.5 12.4 11.6

Interest & other Charges 3 4 7 8 9

Other Income 5 7 9 9 12

(% of Net Sales) 2.1 2.1 1.8 1.5 1.5

Recurring PBT 36 42 59 70 83% chg 32.9 14.2 41.3 18.9 18.6

PBT (reported) 42 48 68 79 95Tax 15 16 22 25 30

(% of PBT) 36.1 34 32 32 32

PAT (reported) 27 32 46 54 65Extraordinary Expense/(Inc.) (1) - - - -ADJ. PAT 27 32 46 54 65% chg 38.4 16.7 44.3 17.1 19.5

(% of Net Sales) 11.3 10.0 9.5 8.6 8.1

Basic EPS (`) 22 25 37 43 51Fully Diluted EPS (`) 22 25 37 43 51% chg 38.4 16.7 44.3 17.1 19.5

Dividend 4 4 6 6 6

Retained Earning 24 28 40 48 59

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Balance Sheet (Standalone)

Y/E March (` cr) FY2011 FY2012 FY2013 FY2014E FY2015ESOURCES OF FUNDSEquity Share Capital 6 6 6 6 6Reserves & Surplus 105 133 173 221 280

Shareholders Funds 112 139 179 228 286Minority Interest - - - - -Total Loans 32 41 55 63 73

Other long term liabilities 5 6 7 13 16

Long Term Provisions 14 17 20 13 16

Net Deferred tax liability 14 14 16 16 16

Total Liabilities 176 216 277 332 407APPLICATION OF FUNDSGross Block 113 133 177 237 297

Less: Acc. Depreciation 35 42 52 64 80

Net Block 78 90 125 172 217Capital Work-in-Progress 6 11 4 8 8

Lease adjustment - - - - -

Goodwill - - - - -

Investments 8 1 1 1 1Long Term Loans and adv. 15 15 21 28 35

Current Assets 132 177 228 277 336

Cash 36 31 40 76 80

Loans & Advances 6 8 9 12 15

Inventory 50 92 94 99 105

Debtors 39 45 83 90 135

Other current assets 1 1 1 1 1

Current liabilities 62 78 102 154 190

Net Current Assets 69 99 125 123 146Mis. Exp. not written off - - - - -

Total Assets 176 216 277 332 407

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Cash Flow Statement (Standalone)

Y/E March (` cr) FY2011 FY2012 FY2013 FY2014E FY2015EProfit Before Tax 42 48 68 79 95

Depreciation 7 8 9 13 16Other Income (5) (7) (9) (9) (12)

Change in Working Capital (8) (18) (18) 38 (20)

Direct taxes paid (15) (16) (22) (25) (30)

Cash Flow from Operations 20 15 29 95 49(Incr)/ Decr in Fixed Assets (14) (20) (37) (64) (60)

(Incr)/Decr In Investments 8 6 (6) (6) (7)

Other Income 5 7 9 9 12

Cash Flow from Investing (1) (6) (35) (60) (55)Issue of Equity/Preference 3 - - - -

Incr/(Decr) in Debt 5 12 18 7 16

Dividend Paid (Incl. Tax) (4) (4) (6) (6) (6)

Others (17) (22) 3 - -

Cash Flow from Financing (16) (14) 15 1 10Incr/(Decr) In Cash 2 (5) 9 36 4

Opening cash balance 34 36 31 40 76Closing cash balance 36 31 40 76 80

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Key Ratios (Standalone)

Y/E March FY2011 FY2012 FY2013 FY2014E FY2015EValuation Ratio (x)P/E (on FDEPS) 20.6 17.6 12.2 10.4 8.7P/CEPS 16.6 14.2 10.2 8.5 7.0

P/BV 5.1 4.1 3.1 2.5 2.0

Dividend yield (%) 0.6 0.8 1.0 1.0 1.0

EV/Net sales 2.3 1.8 1.2 0.9 0.7

EV/EBITDA 12.1 10.8 7.7 6.1 5.1

EV / Total Assets 3.1 2.7 2.1 1.7 1.4

Per Share Data (`)EPS (Basic) 21.7 25.3 36.5 42.8 51.1

EPS (fully diluted) 21.7 25.3 36.5 42.8 51.1

Cash EPS 26.1 31.4 43.9 52.7 63.5

DPS 2.5 3.0 3.0 3.0 3.0

Book Value 88.2 110.0 141.8 179.9 226.3

DuPont AnalysisEBIT margin 16.1 14.3 13.5 12.4 11.6

Tax retention ratio 0.6 0.7 0.7 0.7 0.7

Asset turnover (x) 1.9 1.8 2.1 2.6 2.5

ROIC (Post-tax) 19.8 17.4 19.4 21.6 19.8

Cost of Debt (Post Tax) 5.4 6.4 8.8 8.8 8.8

Leverage (x) (0.1) 0.1 0.1 (0.1) (0.0)

Operating ROE 18.3 18.1 20.2 20.8 19.5

Returns (%)ROCE (Pre-tax) 25.6 23.2 26.7 25.6 25.0

Angel ROIC (Pre-tax) 35.7 30.5 32.6 32.7 32.7

ROE 27.4 25.5 29.0 26.6 25.2

Turnover ratios (x)Asset TO (Gross Block) 2.1 2.4 2.8 2.7 2.7

Inventory / Net sales (days) 65 105 70 72 75

Receivables (days) 54 52 62 52 62

Payables (days) 115 108 90 104 101

WC cycle (ex-cash) (days) 50 77 64 27 31

Solvency ratios (x)Net debt to equity (0.1) 0.1 0.1 (0.1) (0.0)

Net debt to EBITDA (0.3) 0.2 0.2 (0.2) (0.1)

Int. Coverage (EBIT/ Int.) 14.4 11.4 9.3 9.6 9.8

7/30/2019 CSL 4Q FY 2013

15/15

Cera Sanitaryware | 4QFY2013 Result Update

Research Team Tel: 022 - 39357800 E-mail: research@angelbroking.com Website: www.angelbroking.com

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Disclosure of Interest Statement Cera Sanitaryware

1. Analyst ownership of the stock No

2. Angel and its Group companies ownership of the stock No

3. Angel and its Group companies' Directors ownership of the stock No

4. Broking relationship with company covered No

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Ratings (Returns): Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)Reduce (-5% to -15%) Sell (< -15%)