Key highlights

• The company net profit jumped 14% to Rs 22.12 crore on the back of 15% growth in top line to Rs 250.44 crore for Q4FY15. Operatingmargin (OPM) decreased to 14.4% from 16.1% corresponding previous quarter. The decline in OPM was due to higher inventory build-up on anticipation of bigger turnover but turnover was slightly less. The company sanitaryware sales volume growth slowed to around 5-7% in Q4FY15.

• ForFY15, the company registered a net sales income of Rs 821.67crore, 24% higher from Rs 663.69 crore in the same period last year. Operating margin was flat at 14.3%. The net profit jumped 30% at Rs 67.66crore.

• The company recorded a growth of above 51% of total business growth from the four states of southern region, which includes Kerala, Karnataka, Tamil Nadu, and Andhra Pradesh. Also around growth of almost 21% generates from western region which includes Gujarat, Maharashtra and Rajasthan. The northern region business also witnessed a growth of around 23%. The eastern region clocked a growth of around 25%.

• The company generates nearly 42% of total business from the southern region. Western and northern regioneach contributes around 25%of total business, and central region contributes 3-5% and balance from eastern and north-eastern region.

• The Company has declared a dividend of Rs 6.25 per share (125% per fully paid equity share of Rs 5).

• The sanitary ware industry is around 2700-3000 crore business, which also shared between both organized and unorganized players.

• Presently, the company is not planning to increase the prices. But seeing the increase in demand for building toilets, sanitaryware and ceramic items in the next two-three years, they might increase the price.

• The company expects more orders in Q1FY16 compared to last year with pick up in Swachh Bharat Abhiyan. The company expects more than 25% growth rate for the FY16 and maintaining bottomline growth at 30%.Also, the company expects EBITDA margin to maintain above 15%.If Swachh Bharat Abhiyan and such campaigns takeoff then growth numbers will be much better.

• The company expects capex of around Rs 180 crore for next 3 years which will mostly funds from internal accrual.Currently, the company plans to increase sanitaryware capacity to around 32-33 lakh units by the Q2FY16. Also, its faucet-ware capacity is plans to increase from the current 2,500 units a day to between 7,000-8000 units a day by the end of Q1FY16.