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I

KAJARIA CERAMICS lIMITED*

THE CERAMIC TILE INDUSTRY - A GLOBAL SCENARIO

The global ceramic tiles industry is estimated to be around US$ 30bn for the year ended December 2003. China leads with a 32.3% share of the world ceramic tiles production, followed

by Spain and Ita!>' (Table I). Other major ceramic producing countries are Germany, the US. the UK. and lapan. The Italian ceramic tile industry is the world leader in exports. The largest

markets

The European ceramics industry continues to be high!>' competitive international!>" with strong

concentrations in the Sassuolo (Ita!>': about 180 firms) and Castellon (Spain; over

200 firms) areas, and sizeable activities in Germany. Portugal and France.

for ceramic tiles in Europe are Ita!>" Spain, Germany. France, and the United Kingdom.

production

As per year 2002 EXIM survey. the global production of ceramic tiles was 5,904 million sQUare metres (sQ,mt) at the end of 2002, whereas global export volume was 1385 million SQ, mt. China was the largest producer with a total production of 2.100 million SQ,mt. Ita!>' was the largest exporter with an export volume of 438 million sQ,mt. India ranked 8th in the world, in terms of production, with a total production of 150 million sQmt, which was around 2.5% of the global production. However, India's export volume was minuscule with a nominal share of

0.52% of global ceramic trade.

Table I: Top Ceramic Tile Producing Countries

Production* (MSQM)

China 6.030

Spain 624

Ita~ 603

• Period ended December 2003 • Source: www.lndiainfcline.com

* P. Malarvizhi. Associate Professor

228 D THEORY AND PRACTICE OF CASE METHOD OF INSTRUCTION

--I

CERAMIC TILE INDUSTRY - INDIAN SCENARIO

The Ceramic Industry in India has 100 years of rich history behind it. The Indian ceramic industry manufactures state of the art ceramic goods, using cutting edge technology of international standard. During last two decades, there has been a phenomenal growth in the field of technical ceramics to meet specific demands of industry. The scope of the modern ceramic industry is much wider today. Advanced ceramic products find application in electronics, automotive and aerospace industries. The global market for advanced ceramics is growing and countries like Japan and the US dominate this segment. The EXIM study reports that in recent years, Indian producers are also focusing on advanced ceramic products, which is a positive

sign for the future of this industry. The Indian ceramic tile industry. in the past. has registered

Investments in the last 5 years have aggregated

an impressive growth rate of 12% per annum.

over Rs. 2.000 crores with production at approximate~.

2003-04.

200 million

SQ, mts. during

Boom in Housing Sector

The market for ceramic tiles is considered to be very good as Construction activities all over the world are experiencing a boom. Projections of a faster growth rate in the housing and real estate sectors are prompting ceramic manufacturers in India to expand their capacities to meet the increase in demand. The industry has a positive outlook main~ because of booming construction activities and low interest rate on housing loans. The key drivers for ceramic tiles in India are the boom in the housing sector coupled by government policies fuelling strong growth in this sector. Availability of housing loans on attractive terms clubbed with tax benefits for deduction of interest on housing loans will enhance the demand for housing construction and ceramic tile industry. The industry has also laid greater thrust on cost control measures. capacity expansion. exploration of newer markets and introduction of newer designs. All these measures are expected to facilitate better growth in the industry's revenues and profitability in future.

An Overview of the Indian Ceramic Industry

The Indian ceramic tiles industry is worth around Rs.1.500 crore. comprising of wall tiles. floor tiles and ful~ vitrified tiles. Since 1950. the Indian ceramics industry has grown into an organized sector. H & R Johnson was a pioneer in the manufacture of wall tiles as ear~ as 1950. followed by Spartek Ceramics in 1985. The booming demand for floor tiles prompted the entry of other players too. The leading players in the organized sector are Kajaria Ceramics. H & R Johnson. SPL. Spartek Ceramics. Murudeshwar Ceramics. Regency Ceramics. Bell Ceramics. Sun Earth and Orient ceramics. These companies together represent 72% of the organized sector. The market for ceramic tiles in India comprises of both institutional and retail buyers. Institutional buyers account for three-fifth of bulk sales of ceramic tiles. It broad~ includes big builders. the government and the corporate sector, whose buying decisions are influenced by architects and interior designers. The ceramic industry has a low operating margin. long credit periods with high inventory turnover in the institutional segment. Whereas in the retail segment. there are high selling and distribution costs associated with encouraging margins

KA/ARIA CERAMICS LIMITED 1:1 229

and good credit recovery. The tiles market is grouped under three categories, name!>' mosaic. ceramic and natural stones. The market for natural stones is further subdivided into granites. marbles and other stones. including kota stone. Mosaic tiles claim near!>' 70% of tile market share. while. ceramic tiles and natural stones share the rest of the market almost eQual!>'.

Size of the Industry

The ever-sliding excise dury since liberalization has given a substantial boost to the ceramic tile industry. The dury has plunged from as high as 55% in 1993-94 to 40% in 1994, 30% in

1995-96 and to 25% in the budget of 1997-98. This has resulted in reducing the price difference between ceramic and mosaic tiles that accelerated the boom in the industry. The companies

expanded their capacities and a few new pl'!}'ers entered the field. In 1994-95. the industry

capaciry expanded by 14% and

raised from 8%' to 16% on mosaic tiles in budget 2006-07.

in 1995-96. it expanded further by 32%. Excise dury has been

The floor tiles segment is growing faster. whereas the wall tiles market has been growing at a slower pace. The floor tiles segment is anticipated to grow faster than the wall tiles as the consumption ratio shifts from 2:1 to almost 1:1.The principal reason for this could be attributed

to fall in demand due to decline in construction activiry. There is an increase in infrastructure costs - freight, energy and petroleum products - high interest rates accompanied by financial stringen<y. The competition was synchronized with low margins. As a result. the credit period

has gone up to 90 to 100 d'!}'s as against 30 to 35 d'!}'s earlier. With a diverse variery of the high. products in terms of sizes, colours and designs. the inventory levels have been inordinate!>,

CURRENT STATUS OF THE INDUSTRY

The domestic market size of Indian ceramic tile industry has estimated to be approximate!>' Rs.11billion in 1996-97. India's ceramic tile exports constitute a meagre half a percent of the

competitor and a leader in the international

arena. The Indian ceramic industry has witnessed encouraging trends in domestic demand, powered by a sustained rise in housing construction and booming hospitaliry industry. The retail boom in the Indian econo~ has also influenced the demand for higher end ceramic products. The Indian ceramic tile industry has clocked a production of 3.8 million tons per annum. The industry also enjoys the uniQue distinction of being high!>' indigenous with an

abundance of raw materials. technical skills, and infrastructure facilities despite being fair!>' capital-intensive. Yet, India does not enjoy the lower transportation cost advantage that countries like Spain and Ita!>' do, while exporting to the US. the UK and other European countries. The

Indian ceramic industry

India, the per capita consumption is 0.05 sQ,m. compared to 0.6 and 5 sQ,m. in China and

Europe. respective!>'. The international market is dominated by

global export market. China has emerged as a powerful

is current!>, experiencing excess capacities and decreasing margins. In

Ita!>' and Spain. Countries like

Malaysia. Thailand. Indonesia, Sri lanka and Vietnam. that imported ceramic tiles earlier. are now setting up their own plants. India figures in the top 7 ceramic tile manufacturing countries of the world. Investments in ceramic tile industry are approximating, Rs 2.000 crores in the

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230 1:1 THEORY AND PRACTICE OF CASE METHOD OF INSTRUCTION

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last five years. Both traditional and the latest trends in manufacturing methods are deployed in the manufacturing process.

Overall. the bullish growth estimates in the Indian economy, have significant!)' influenced the

growth of the Indian ceramic tile industry. The industry has registered a consistent growth rate

of 2-15% over the past few years. The main product segments are the wall tile, floor tile.

vitrified tile and porcelain tile segments. The market shares are 35%, 53% and 12% respective!)'

for wall, floor and vitrified/porcelain tiles. The tiles are available in a wide varie!}' of designs.

textures and surface effects. There is a tough competition in the domestic front between wall

tiles and floor tiles. Yet, there are more players in the one sQuare foot category in India.

nurturing the hope that the housing shortage would be met by wooing the increase in disposable

incomes of Indian households. H&R johnson. SPL and Kajaria dominate the wall tiles segment,

while Murudeshwar, Bell and Spartek, account for 60% of the turnover in the floor tiles sector.

Kajaria and SPL are well known brands in the north, while H&R Johnson, Bell and SPL have a

strong presence in the west; Murudeshwar and Spartek are domestic brands in the southern

markets. An unprecedented boom in the housing sector. retail sector, IT & BPO sectors of

recent years promises further growth potential for

domestic market.

H&R Johnson (India) has the largest market share in the wall tiles. Johnson International of the

UK holds 40% of its eQui!}'. The company is setting up a new plant in Raigad district of

Maharashtra. which could be the largest in South-East Asia. SPL commands the second-largest

market share (19%) in the wall tiles segment. Kajaria Ceramics is the second largest player in

the industry with a 30% growth in turnover and 50% in net profit. Apart from the other established

players like Deora Ceramics and Diamond Ceramics. there are new entrants like EID Parry.

Aurangabad Asbestos and Nitco. The lead players and alliances along with demand and market

growth rates for tiles are given in Tables 2. 3 & 4 respective!)'.

Table 2: leading Players & Alliances

Table 2: leading Players & Alliances

By Floor Tiles

10

Bell Ceramics

Ceramic Mirage. Ita!>'

 

H&R Johnson

13

Johnson Int, UK

 

Kajaria

8

Murudeshwar

8

Saemi Imola. Ita!>,

 

SPL

II

Spartek

4

Ceramic Tiles Co. USA

 

-

Regency

Contd,

KA/ARIA CERAMICS LIMITED • 231

By Wall Tiles

/6

Bell Ceramics

 

H&R Johnson

14

Kajaria

7

Todagres SA (Spain)

 

Murudeshwar

13

SPL

6

Spartek

5

Regency

5

Neycer

4

Pedder & Pedder

-

EID Parry

-

Aurangabad ABC

-

Table 3: Demand:

Past and Future

Year

'000 tonnes

1990-91

600

1991-92

625

1992-93

642

1993-94

674

1994-95

770

1995-96

950

1996-97

1105

1997-98

1325

1998-99

1590

1999-00

1870

2000-01

2195

2001-02

2580

2006-07

5000

Table 4: Market Growth Rates

1990-91-1996-97

10.7%

1996-97-2001-02

18.5%

2001-02-2006-07

14.1%

232 D THEORY AND PRACTICE OF CASE METHOD OF INSTRUCTION

THE FUTURE OF INDIAN CERAMIC TILE INDUSTRY

India ranks among the top seven countries in the world in terms of production. The country's market share has risen from a little over 1.7% to 2.7-% in te!ms of ceramic tile production. The introduction of vitrified and porcelain tiles is a significaht development. since these are said to be the tiles of the future. Global!y. these categories of tiles haye already become major sellers. The Indian tile industry has developed an export market risingatthe rate of 15%per annum. The industry is projected to figure among the top five countries manufaCturing ceramic tiles by 2010. This however, is subject to policies favourable for the tile industry in order to compete with international players on an even ground. Provision for good infrastructural support is the key for the development of any industry. To compete global!y. our plants must be geared up to international standards in order to benefit from economies of scale. This in turn, will facilitate significant reduction in the cost of production. Polices pertaining to basic customs dury on import of ceramic tiles and raw materials need to be reviewed periodical!y in order to prevent dumping of tiles from international suppliers. Ceramic tile industry statistics, and top ten producing countries are given in Table 5 and Figures I & 2 respectivelY.

 

Table 5: Ceramic Tile Industry Statistics

 

1.

World production

 

6400 Million sq.mts.

2.

India's Share

200

Million sq.mts.

3.

World ranking (in production)

 

7

4.

Per capita consumption

 

0.15 sq.mts.

5.

Global Industry Growth Rate

6%

6.

Growth Rate (India Domestic Market)

12%

7.

Organized industry turnover (India)

INR 22.50 Billion

   

Glazed Wall Tile share

40%

   

Glazed Floor Tile share

46%

   

Unglazed Vitrified Tile share

8%

   

Glazed Porcelain Tile Share

6%

 

Unorganized Industry Turnover

 
   

Glazed Wall Tile share

57%

 

~

Glazed Floor Tile share

35%

   

Unglazed Vitrified Tile share

6%

   

Glazed Porcelain Tile Share

2%

8.

Investments

in the last 5 years

INR 20 Billion

9.

Organized sector

   
   

Share of Production

56%

   

No. of units

15

 

INR 2.3 Billion per annum

   

Revenue (excise duty)

approx.

 

10. Unorganized sector

   
   

Share of Production

44%

No. of units

200

(approx.) (70% based in

   

Gujarat region)

   

Revenue (excise duty)

INR 0.7 Billion per annum or less

 

11. Job Potential

50,000 direct

 

500,000 indirect

USA

Indonesia

India

j;;o

0:

"

.,

U

TaiW5tn

Mexico

Turkey

China

Brazil

Spain

Italy

0

KAIARIA CERAMICS LIMITED • 233

5

Share % (World Production)

10

15

20

(Source: ASCER. countries listed according to output in 2000)

Note: The top 10 countries shown above account for more than 69% of world production of Ceramic Tiles. Total world production as per 2000 figures was 4122.80 million sq.mts.

Figure

I: Top 10 Producing Countries (Share %)

Argentina

Turkey

Poland

France

~

C Brazil

=

U =

Alemany

Italy

Tai""m

Portugal

Spain

0

2

4

6

Per Capita Comumptionl

Sq.Mt.

8

(Source: ASCER. figures for 1999)

Note: India does not figure in the above chart. The Per Capita Consumption! Sq.Mt. for India

stands at only 0.1. Although nations.

Figure 2: Top 10 Countries with Highest Per Capita Consumption! Sq,Mt.

India figures in the 11 th position in the list of top consuming

COMPANY PROFILE - "KAJARIA CERAMICS LIMITED"

Kajaria Ceramics limited (KCL) has established in technical collaboration with Todagres, Spain (second-largest maker of tiles in the world). KCL is the largest manufacturer and exporter of

floor and wall tiles in India. It manufactures glazed tiles and listello tiles under the Kajaria

brand name. KCl came out

Sikandrabad, Uttar Pradesh. The commercial production of this unit is commenced in August

with a public issue in September 1988 to set up a factory at

234 C THEORY AND PRACTICE OF CASE METHOD OF INSTRUCTION

1988. KCL has expanded the installed capaciry of ceramic tiles during the financial year 2003- 04 by 2300000 sQm. and with this expansion, its total capaciry has risen to 13800000 sQm.

Demand for Ceramic Tiles

The ceramic tile industry is experiencing a bullish trend for a number of reasons viz., increase in housing demand, thrust on infrastructure, a general optimistic trend in the industrial sector. These are increasing the demand for ceramic tiles. A growing population, rising income levels, increasing acceptabiliry of the concept of nuclear families, lower interest rates with easy availabiliry of loans have all contributed to this rise. Kajaria Ceramics Ltd. (KCL), the second largest player in India stands to gain from this boom.

Increased Market Share

preference towards ceramic tiles instead of mosaic tiles. Projections of a faster growth rate in the housing and real estate sectors are prompting ceramic manufacturers to expand their capacities to meet the increase in demand. KCL, which operates at over 100% Capaciry utilization, is on a major expansion programme in tune with the prevailing trends in the industry. The company's ambitious target is to reach a capaciry of 40 million sQm. and a turnover of Rs 1,000 crore by March 2010. This will help the compa~ to meet additional demand and increase its market share in both the domestic and export arenas. It also stands to gain from economies of scale achieved by higher production levels because of a Rs. 23 million expansion programme completed in February 2004.

KCL, which at present

of 18 million

has two plants in UP and Rajasthan with a combined capacity

of implementing an expansion programme to

sQm. is in the process

raise its capaciry by another 8.4 million sQmt. This expansion is being carried out at a cost of Rs 123 crore with a mix of debts of Rs 80 crore and internal accrual of Rs 43 crore. In a step towards this, the company has already obtained approval for the issue of a GDR or FCCBs up to $30 million. The project is expected to be completed by September 2006. After this, KCl will become the largest producer of ceramic wall and floor tiles in the country. The company's ceramic tile production figures are shown in Figure 3.

12 Million

14 Million

18 Million

2005

Figure 3: Kajaria Ceramics limited - Expanding Horizons

KA/ARIA CERAMICS LIMITED 1:1 23S

The Indian ceramic market produces about 270 million sQm. with a turnover of Rs 5.500 cro~e. India accounted for 4.1% of the global production of ceramics. KCL was the first ceramic tile company in India to be accredited with the ISO 9002. The company has sharpened its focus on exports. KCL has won the prestigious Capexil Special Export award (given for the highest exports achieved in a year) four times in succession in 1992, 1993. 1994 and 1997. also bagging it asain for the year 1999-2000. KCL is the largest exporter of ceramic tiles from India with exports to over 20 countries. It exports to Europe. West Asia and SMRC countries and has plans to tap the export potential in Australia, South Africa. Vietnam. North America and Singapore. KCL is opening its office in Sharjah, which will function as the marketing arm of the company in the Gulf.

KCL is adopting a concept of mock bathrooms. kitchens. and living rooms in organized retailing. as a marketing strategy. It has also invested Rs.25 million in creating a subsidiary, Kajaria Plus Ltd, to market its ceramic products. In February 2001. the company also entered the Australian market by floating a subsidiary company in Australia, IWs Kajaria Ceramics (Aus) Pry Ltd with an initial investment of Rs. 10.86 million.

Duo/ Structure of the Indian Tile Industry

The customs dury on raw materials for the tile industry has been rationalized in the Union Budget 2006-07. Providing free samples is a major marketing strategy followed wide!>, by the tile industry. Imposition of FBT on samples has put an additional tax burden on tile manufacturers. Further. the reQuest of Federation of Indian Chamber of Commerce and Industry (FICCI) to increase the rate of abatement provided to the industry to 50% from the present 45% could not be met in. this budget. The rate of abatement is the percentage by which a manufacturer can bring down his post-manufacturing expenses. such as transportation. for the purpose of tax calculation. In its pre-budget memorandum to the Finance Ministry. FICCI had stated that increasing the rate would enhance the price competitiveness of domestic manufacturers.

Due to the prevalence of inverted dury structure there is a 15%dury on raw material imports,

while the tile themselves can be imported from China at a dury of 6.45%. This has led to 'heary' increase in dumping of Chinese tiles in the domestic market. According to an industry estimate.

the import

compared to 2004. With China's inclusion in the Bankok Agreement. the customs dury on tile imports from China was brought down to 10 %. which was further brought down to 6.45% in Ju!>' 2005.

of tiles from China increased by 300 % in the first nine months of the year 2005 as

The tile manufacturers suggested the Government of India to remove tiles from the negative list of the Bangladesh. India. Myanmar. Sri Lanka. and Thailand Economic Cooperation (BIMSTEC) Free Trade Agreement. The government had included tiles in the~negative/list of the BIMSTEC FTA on the grounds that th()' were 'luxury products.' disalJowingtile trade between India and its neighbours at lower dury structures. The manufacturers say that the removal would not on!>' boost exports from India. but also help countries su~h/as Sri Lanka and Bangladesh obtain high Q!.Ialirytiles at a cheaper price.

For an industry that is struggling with over capaciry installation, the import of tiles from China has come as a major impediment to profitabiliry. According to industry estimates. the total

236 I:l THEORY AND PRACTICE OF CASE METHOD OF INSTRUCTION

import of tiles in 2004 was worth Rs 100 crare. But, in the first nine months of 200S, imports

have gone up to Rs 300 crore. Dumping has resulted in

domestic manufacturers. The price war would negate the benefit of the investments made by the domestic manufacturers towards capaci!}' building and technology upgradation. According to an industry estimate, industry players have made a total investment of Rs 2,500 crare in the last three years for this purpose. The market is expected to take more than three years to absorb this capaci!}'.

downward revision in prices by the

FINANCIAL HIGHLIGHTS

The financial statements, name!)' Prafit & Loss account, Balance Sheet and Financial overview of Kajaria Ceramics Limited are given in tables 6, 7 & 8 respective!)'.

Table 6: Profit and Loss Account

 

Kajaria Ceramics

ltd • Profit & Loss

                   
 

Account

                   
 

Industry

:Ceramics - Tiles

                   
 

(Rs in Crs)

                   
 

Mar

Mar

Mar

Mar

Mar

Mar

Mar

Mar

Mar

Mar

 

Year

06(12)

05(12)

04(12)

03(12)

02(12)

01(12)

00(12)

99(12)

98(12)

97(12)

 

INCOME:

                   
 

Sales Turnover

351.79

300.4

269.84

239

227.84

235.93

236.48

193.94

136.22

130.21

 

Excise Duty

21.36

20.46

20.66

28.76

25.12

30.03

36.09

28.05

24.97

26.89

 

Net Sales

330.43

279.94

249.18

210.24

202.72

205.9

200.39

165.89

111.25

103.32

Other Income

0.81

1.02

0.58

0.4

0.19

0.07

8.69

4.4

0.04

0.35

Stock Adjustments

14.47

0.2

-3.36

4.89

0.48

2.56

1.45

11.93

4.19

1.43

Total Income

345.71

281.16

246.4

215.53

203.39

208.53

210.53

182.22

115.48

105.1

 

EXPENDITURE:

                   

Raw Materials

147.06

103.78

91.97

80.11

76.08

74.69

71.85

63.48

38.88

34.85

Power & Fuel Cost

60.62

53.37

51.9

44.65

34.21

34

29.41

27.21

14.59

13.48

Employee Cost

20.06

16.44

14.31

12.67

11.61

10.95

10.34

8.74

5.96

4.32

Other Manufacturing Expenses

10.08

10.3

9.14

7.07

8.33

9.24

8.76

5.92

4.55

4.53

Selling and Administration Expenses

38.33

33.47

27.97

23.45

27.26

25.22

30.67

26.55

8.98

10.48

Miscellaneous Expenses

1.02

3.04

0.91

1

1.21

1.21

1.07

0.7

7.35

0.55

Less: Pre-operative Expenses Capitalised

0

0

0

0

0

0

0

0

0

0

Total Expenditure

277.17

220.4

196.2

168.95

158.7

155.31

152.1

132.6

80.31

68.21

Operating Profit

68.54

60.76

50.2

46.58

44.69

53.22

58.43

49.62

35.17

36.89

Interest

14.28

14.61

19.66

23.45

28.79

33.15

33.91

31.04

12.44

8.3

Gross Profit

54.26

46.15

30.54

23.13

15.9

20.07

24.52

18.58

22.73

28.59

Depreciation

18.12

14.88

13.19

13

12.85

12.59

12.01

11.03

6.15

5.4

Profit Before Tax

36.14

31.27

17.35

10.13

3.05

7.48

12.51

7.55

16.58

23.19

 

Tax

4.47

2.09

3

0.8

0.21

0.65

1.45

0.8

1.75

3

Deferred Tax

3.5

3.69

0.81

-0.6

0.21

0

0

0

0

0

Reported Net Profit

28.17

25.49

13.54

9.93

2.63

6.83

11.06

6.75

14.83

20.19

Extraordinary Items

-0.06

-1.4

-0.04

-0.08

-0.13

-0.14

-0.21

-0.03

-1.33

-0.03

Adjusted Net Profit

28.23

26.89

13.58

10.01

2.76

6.97

11.27

6.78

16.16

20.22

Adjst. below Net Profit

0

0

-1.71

-0.01

0

0.07

-0.06

-0.02

0

-0.23

P

& L Balance brought forward

34.41

19.17

10.37

3.26

1.31

3.16

3.25

4.74

3.24

4

Statutory Appropriations

0

0

0

0

0

0

0

0

0

0

Appropriations

10.25

10.25

3.03

2.81

0.68

8.75

11.09

8.22

13.33

20.72

P

& L Balance carried down

52.33

34.41

19.17

10.37

3.26

1.31

3.16

3.25

4.74

3.24

Dividend

5.15

5.15

2.94

1.77

0.74

0.73

1.47

1.47

2.94

3.38

Preference Dividend

0

0

0

0

0

0.43

0

0

0

0

Equity Dividend %

35

35

20

12

5

5

10

10

20

23

Earnings Per Share-Unit Curr

3.73

16.83

8.94

6.6

1.79

4.23

7.3

4.49

9.88

13.49

Book Value-Unit Curr

18.43

80.5 67.17

61.39 56.01

82.79

79.02 72.75

69.28

61.4

KAjARIA CERAMICS LIMITED • 237

Table 7: Balance Sheet

Kajaria Ceramics Ltd • Balance Sheet

                   

(Rs in Crs)

                   

Year

Mar

Mar

Mar

Mar

         

Mar

Mar

Mar

Mar

Mar

 
 

06

05

04

03

02

       

Mar

SOURCES OF FUNDS:

         

01

00

99

98

97

Share Capital

14.72

14.72

14.72

14.72

14.72

19.71

14.71

14.71

14.71

 
                   

14.71

Reserves Total

120.9

 

103.77 84.16

75.65

67.72

107.08

101.53

92.31

87.2

75.61

Total Shareholders Faunds

 

135.62 118.49 98.88

 

90.37

82.44

126.79

116.24

107.02

101.91

 
                   

90.32

Secured Loans

   

192.08 140.17 143.93

150.11

165.91

175.84

191.38

197.92

193.27

79.12

Unsecured Loans

 

10.5

5.02

2.66

0.3

2.39

5.65

3.5

3

5.25

14.45

Total Debt

202.58

145.19

146.59

150.41

168.3

181.49

194.88

200.92

198.52

93.57

Total Liabilities

338.2

263.68

245.47

240.78

250.74

308.28

311.12

307.94

300.43

 

APPLICATION OF FUNDS:

                 

183.89

Gross Block

388.49

360.66

292

264.85

263.58

258.06

254.1

242.77

224.33

115.18

Less: Accumulated Depreciation

138.41

120.37

105.8

92.79

80.11

67.53

55.12

43.33

32.33

26.21

Net Block

250.08

240.29

186.2

172.06

183.47

190.53

198.98

199.44

192

88.97

Lease Adjustment

0

0

0

0

0

0

0

0

0

0

Capital Work in Progress

31.68

6.18

4.79

3.23

0

2.08

0.77

2.1

3.6

30.28

Investments

4.46

4.46

3.93

3.93

4.45

4.03

0.45

0.45

0.45

0.45

CURRENT ASSETS, LOANS & ADVANCES

                   

Inventories

65.95

49.96

45.76

47.89

46.3

41.04

40.73

38.21

25.49

17.09

Sundry Debtors

50.92

41.63

50.22

44.97

48.44

48.66

55.08

44.58

41.92

32.11

Cash and Bank

5.04

2.88

3.04

3

3.63

4.98

4.87

2.07

3.99

7.83

Loans and Advances

25.31

26.89

25.99

26.92

24.41

37.82

35.96

39.44

53.12 26.35

 

Total Current Assets

147.22

121.36

125.01

122.78

122.78

132.5

136.64

124.3

124.52 83.38

 

Less: Current Liabilities and Provisions

                   

Current Liabilities

36.77

                 

Provisions

 

55.26

26.85

17.94

17.92

19.39

22.48

15.93

15.19

12.54

 

9.99

8.37

6.32

2.79

0.95

1.47

3.24

2.42

4.98

6.72

Total Current Liabilities Net Current Assets

46.76

63.63

33.17

20.73

18.87

20.86

25.72

18.35

20.17

19.26

 

100.46

57.73

91.84

 

102.05 103.91 111.64

     

110.92 105.95 104.35 64.12

 

Miscellaneous Expenses not written off

0

0

0

0

0

0

0

0

0.03

0.07

 

0

0

0

0

0

0

0

0

0

0

Deferred Tax Assets Deferred Tax Liability Net Deferred Tax

48.48

44.98

41.29

40.49

41.09

0

0

0

0

0

Total Assets

-48.48

-44.98

-41.29 -40.49 -41.09

   

0

0

0

0

0

Contingent Liabilities

   

338.2 263.68 245.47 240.78 250.74 308.28 311.12 307.94 300.43 183.89

             

99.01

51.95

16.86 24.21

16.19 42.24 44.56

36.43 22.72 21.54

Table 8: Financial Overview
Table 8: Financial Overview

Kajaria Ceramics ltd - Rnancial Overview

           

(Rs in Crs)

                   
 

200603

200503

200403

200303

200203

200103

200003

199903

199803

199703

EQuity Paid Up

14.72

14.72

14.72

14.72

14.72

14.71

14.71

14.71

14.71

14.71

Networth

135.62

118.49

98.88

90.37

82.44

121.79

116.24

107.02

101.91

90.32

Capital Employed

338.2

263.68

245.47

240.78

250.74

308.28

311.12

307.94

300.43

183.89

Gross Block

388.49

360.66

292

264.85

263.58

258.06

254.1

242.77

224.33

115.18

Net Working Capital (Incl. Def. Tax)

51.98

12.75

SO.55

61.56

62.82

111.64

110.92

105.95

104.35

64.12

Current Assets (Incl. Def. Tax)

147.22

121.36

125.01

122.78

122.78

132.5

136.64

124.3

124.52

83.38

Current liabilities and Provisions ( Incl. Def.

95.24

108.61

74.46

61.22

59.96

20.86

25.72

18.35

20.17

19.26

Total Assets/liabilities (excl Reval & w.oll)

433.44

372.29

319.93

302

310.7

329.14

336.84

326.29

320.57

203.08

Gross Sales

351.79

300.4 269.84

239

227.84 235.93 236.48

193.94 136.22 130.21

Contd

238 1:1 THEORY AND PRACTICE OF CASE METHOD OF INSTRUCTION

Net Sales

330.43

279.94

249.18

210.24

202.72

205.9

200.39

165.89

111.25

103.32

Other Income

0.81

1.02

0.58

0.4

0.19

0.07

8.69

4.4

0.04

0.35

Value Of Output

344.9

280.14

245.82

215.13

203.2

208.46

201.84

177.82

115.44

104.75

Cost of Production

256.98

199.73

181.94

158.33

144.21

159.63

115.31

116.81

69.3

~.36

Selling Cost

28.99

25.82

21.35

18.32

21.94

19

24.67

21.44

5.35

7.35

PBIDT

68.54

60.76

50.2

46.58

44.69

53.22

58.43

48.76

35.17

36.89

PBDT

54.26

46.15

30.54

23.13

15.9

20.07

24.52

18.58

22.73

28.59

PBIT

50.42

45.88

37.01

33.58

31.84

40.63

46.42

37.73

29.02

31.49

PBT

36.14

31.27

17.35

10.13

3.05

7.48

12.51

7.55

16.58

23.19

PAT

28.17

25.49

13.54

9.93

2.63

6.83

11.06

6.75

14.83

20.19

CP

46.29

40.37

26.73

22.93

15.48

19.42

23.07

17.78

20.98

25.59

Revenue earninl:S in forex

26.34

18.29

14.94

20.94

31.51

35.21

48.2

36.75

14.67

14.23

Revenue expenses in forex

53.82

26.5

22.01

15.42

12.36

18.2

38.64

25.95

5.35

8.77

Capital earnings in forex

0

0

0

0

0

0

0

0

0

0

Capital expenses in forex

2.21

35.81

16.32

0.54

1.13

0.99

2.56

2.2

41.88

2.S3

Book Value (Unit Curr)

18.43

80.5

67.17

61.39

56.01

82.79

79.02

72.75

69.28

61.4

Market Capitalisation

320.9

224.48

104.51

24.73

26.5

40.63

107.09

52.99

78.75

188.05

CEPS (annualised) (Unit Curr)

6.19

26.94

17.9

15.43

10.52

12.79

15.47

11.99

14.07

17.17

EPS (annualized) (Unit Curr)

3.73

16.83

8.94

6.6

1.79

4.23

7.3

4.49

9.88

13.49

Dividend (annualised%)

35

35

20

12

5

5

10

10

20

23

Payout (%)

18.76

20.79

22.34

18.23

28.14

11.74

13.69

22.27

20.22

17.03

 

3.93

77.1

34.74

22.38

22.27

/9.99

20.91

15.93

-22.57

22.17

Cash Row From Operating Activities Cash Row From Investing Activities

-53.29

-72.52

-28.9

-4.39

-4.23

-9./8

-10.45

-17

-82.5

-33.56

Cash Row From Financing Activities

51.52

-4.73

-5.81

-18.62 -19.38 -10.71

-7.66

-0.85 /01.23

16.63

Question

Ana!yse the financial performance of the company using Ratio Ana!ysis.