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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: [email protected]

    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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    Cera Sanitaryware | 4QFY2013 Result Update

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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

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    28.1 27.3 28.9

    37.932.8

    40.052.0

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    (%)

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    Revenue ( LHS) yoy growth (RHS)

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    (%)

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    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

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    43.3 48.0

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    Advertisement Commssion Distribution % change yoy

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    Cera Sanitaryware | 4QFY2013 Result Update

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    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

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    FY2011 FY2012 FY2013E FY2014E FY2015E

    (%)

    (`

    cr)

    Installed Capacity Production Capacity Utilization

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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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    Cera Sanitaryware | 4QFY2013 Result Update

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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

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    Net Sales (LHS) yoy growth (RHS)

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    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

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    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

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    Oct-12

    Apr-13

    (`)

    Price 1.5x 5.5x 9.5x 12.5x

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    Cera Sanitaryware | 4QFY2013 Result Update

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    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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    Cera Sanitaryware | 4QFY2013 Result Update

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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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    Cera Sanitaryware | 4QFY2013 Result Update

    April 26, 2013 14

    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

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    Cera Sanitaryware | 4QFY2013 Result Update

    Research Team Tel: 022 - 39357800 E-mail: [email protected] 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

    Note: We have not considered any Exposure below `1 lakh for Angel, its Group companies and Directors.

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