Cera Sanitaryware Reports Steady Growth in Q2 FY24

Ahmedabad-based Cera Sanitaryware Limited, a leading manufacturer of sanitaryware, faucets and wellness products in India, reported steady revenue growth of 11.4% year-on-year to Rs. 4,616 million in Q2 FY24. Profit after tax also increased by 12.2% to Rs. 569 million.

Cera Sanitaryware has a wide portfolio of products including tiles, faucets, wellness products like bathtubs and showers. The company has a pan-India presence with over 7500 retail outlets and 1400 dealers. Cera’s flagship brands include Cera, CeraStyle and CeraWall.

For the first half of FY24, Cera’s revenues grew 9.7% to Rs. 8,888 million compared to the same period last year. Profit after tax for H1 FY24 stood at Rs. 1,133 million, up 25.4%. The sanitaryware division, which contributes over 50% to revenues, grew by 4.3% in Q2. The faucetware division, accounting for 36% of revenues, saw higher growth of 15.7%. New product introductions over the past three years now comprise 29% of the company’s revenues.

According to Vikram Somany, Chairman and Managing Director, Cera witnessed moderation in consumer demand in Q2, especially in Tier 2 and 3 cities, amidst high inflation. However, the company’s focus on premium products provided an upside. Cera successfully commissioned a brownfield faucetware facility in September 2022, which will augment capacity.

Cera continues to benefit from its extensive retail presence, with retail outlets accounting for 67% of Q2 revenues. The company’s after-sales service has improved service times. Cera had a cash balance of Rs. 751 crore as of September 2022.

Some key strengths for Cera are its wide product portfolio, extensive distribution reach across India, strong brand reputation and healthy balance sheet. The company sees growth opportunities going forward based on increasing sanitation awareness, government schemes like Housing for All and Swachh Bharat Abhiyan as well as real estate growth.

Cera Sanitaryware was incorporated in 1998 and went public in 2007. The company has manufacturing plants in Gujarat and Kerala besides offices across India. Cera aims to be an integrated bathroom solutions provider. It has been diversifying beyond sanitaryware into faucets, shower enclosures, wellness products, and more.

The sanitaryware market in India is expected to reach US$3.8 billion by 2025 on the back of rising incomes and greater health consciousness. With its strong brand, wide portfolio and distribution network, Cera Sanitaryware is well-positioned to capitalize on the attractive growth prospects in this market.