ICICI Securities: Cera Sanitaryware’s Q1 Review - Beat On All Counts Led By Strict Cost Control Measures

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.Besides registering lower than expected decline in Q1 revenues (down 47% YoY to Rs 1.43 billion versus our estimate of Rs 1.2 billion), Cera Sanitaryware Ltd. also reported a beat in its operational performance with Ebitda margin coming in at 4.7% (our estimate down 0.6%).The beat was largely led by stricter cost control measures including rental renegotiation, trimming down on sales, marketing and publicity costs besides decline in natural gas prices.With Cera Sanitaryware witnessing a faster recovery in volumes across its bathroom solutions segment in July 2020 (a mere 5% decline in revenues), we now build-in 11% revenue decline for FY21E.We expect EBITDA margin to rebound to 15% by FY22E on the back of cost-saving initiatives, likely price hike in August 2020 and operating leverage..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

ICICI Securities: Cera Sanitaryware’s Q1 Review - Beat On All Counts Led By Strict Cost Control Measures

ICICI Securities: Cera Sanitaryware’s Q1 Review - Beat On All Counts Led By Strict Cost Control Measures

Choose a plan