KAJARIA CERAMICS LIMITED

Investor Update – Q1 FY23

July 21, 2022

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Content

Chairman’s Message
Financial Performance – Q1 FY23
Subsidiaries
Income Statement
Shareholding Pattern

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Investor Update Q1 FY23
Chairman’s Message

We are very pleased with our first quarter performance, which again demonstrated the
power of sustainable business against a backdrop of geopolitical volatility and high
commodity prices.

We got off to a great start this fiscal year, generating Rs.1,008 crore in revenue, up 80% year-
on-year. Coming off a strong finish to FY22 last quarter, this is now our seventh straight
quarter delivering double digit revenue growth.

EBITDA margin for the quarter remains same at 15% even with escalating inflation across all
inputs and rise in gas costs.

The industry's demand scenario continues to be healthy given traction in the real estate
sector despite high input costs and increasing interest rates. At present we are witnessing a
greater momentum in the tier II and below markets vs the metros. Also, the recent
correction in commodity prices and the forecast of a good monsoon are encouraging.

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Investor Update Q1 FY23
Tile VolumeData (consolidated)

Production Growth (MSM) - Q1 FY23 Production Growth (MSM) - FY22

19.72
20 70 68.37
5.04 60 16.05
15 13.99 51.86
50
2.61 10.89
40
10
30
14.68 52.32
11.38 20 40.97
5
10

0 0
Q1 FY22 Q1 FY23 FY21 FY22
Own Manufacturing Subsidiaries Own Manufacturing Subsidiaries

Sales Growth (MSM) – Q1 FY23 Sales Growth (MSM) – FY22

25 23.33 91.65

80 75.44 25.39
20 6.55
18.72
15.26 60 14.33
15 3.35
3.66 12.09
40
10 2.49
44.63 51.93
13.43 20
5 9.11
0
0 FY21 FY22
Q1 FY22 Q1 FY23
Own Manufacturing Subsidiaries Outsource Own Manufacturing Subsidiaries Outsource

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Investor Update Q1 FY23
Revenue Growth - consolidated

Rs. / Crores

1400 4000 3705.19

66.05

1200 275.74

1008.22 2780.90
Plywood 3000 Plywood
1000 20.34 893.64
39.15
71.37 209.00
Sanitary ware / Faucets Sanitary ware / Faucets

800 238.68 561.33

Outsourcing (Tiles) 509.43 Outsourcing (Tiles)
2000
561.66 Subsidiaries (Tiles) Subsidiaries (Tiles)
600 139.71 413.40
5.36
36.97
Own Manufacturing Own Manufacturing
114.55 (Tiles) (Tiles)
400
79.46 1000 1960.33
538.12 1558.02
200
325.32

0 0
Q1 FY22 Q1 FY23 FY21 FY22

Refer Slide 15 for detailed IncomeStatement 5/17

Investor Update Q1 FY23
Profitability - Consolidated

PBT Rs. / Crores 125 PAT

160

125.71 100 92.30

120
75

80
56.88 50 43.06

40
25

0 0
Q1 FY22 Q1 FY23 Q1 FY22 Q1 FY23

400 376.98
510.17
500
308.05
412.74
300
400

300
200

200

100 100
FY21 FY22 FY21 FY22

6/17
Investor Update Q1 FY23 Refer Slide 15 for detailed IncomeStatement
EBITDA / EBITDA Margin (consolidated) – quarterly progression

200

20%
175

18.54%
150 17.21%
15%
15.06% 15.23%
125
14.32%
Rs./ Crores

100
180.49 183.84 10%
165.94
75 153.59

50
5%
80.42

25

0 0%
Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23

EBITDA (Rs. / Crores) EBITDA Margin (%)

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Investor Update Q1 FY23
Key Ratios(consolidated)…………

Net Debt (Rs. Crore) * Net Debt Equity(X) *

200
0.20

100

0 0.10
Mar-20 Mar-21 Mar-22 Jun-22

-100 -107
0.00
-200 Mar-20 Mar-21 Mar-22 Jun-22
-0.06
-300
-0.10
-373
-349 -340
-400
-0.15
-0.18 -0.17
-500 -0.20

* Net of cash and cash equivalents

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Investor Update Q1 FY23
Key Ratios(consolidated)

Working Capital (Rs. Crore) Return on Equity (Avg.)

600
513 513 565
500
432 502
400 466
397 373
300 328
298
200 239 30
207
100

0
Mar-20 Mar-21 Mar-22 Jun-22
20 18.89
Debtors Inventory Creditors 17.19 17.03
15.53
120
Working Capital (Days)
100
10
80 73
57
60 50 52

40
0
20 Mar-20 Mar-21 Mar-22 Jun-22

0
Mar-20 Mar-21 Mar-22 Jun-22

• ROE as on 30th Jun. 22 taken at averageof net worth as on 31st Mar.22 & 30th Jun. 22 and on Q1 FY23 PAT.
• Working capital days excludes capex creditors, capital advances and cash, cash equivalent & bank balance.
• For calculation of Mar-21 working capital days, only Q2 ,Q3 and Q4 FY21 sale has been considered.

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Investor Update Q1 FY23
Subsidiaries

A. KAJARIA VITRIFIED (Formerly known as Jaxx Vitrified Pvt. Ltd.)

Kajaria Vitrified Pvt. Ltd. is based in Morbi (Gujarat). Kajaria has 87.37% stake in
the same. The company has commissioned 4.40 MSM new capacity of polished
vitrified tiles at the same site in April 2022, which has increased the combined
annual capacity to 12.00 MSM. The Company has operated at optimum capacity
during Q1 FY23.

B. VENNAR CERAMICS
Vennar is based in Vijayawada (Andhra Pradesh). Kajaria has 51% stake in the
same. Vennar has annual capacity of 2.90 MSM of ceramic wall tiles. Vennar has
operated at optimum capacity during Q1 FY23.

C. KAJARIA INFINITY (Formerly known as Cosa Ceramics Pvt. Ltd.)

Kajaria Infinity Pvt. Ltd. is based in Morbi (Gujarat). Kajaria Ceramics had 51%
stake in the same. Kajaria Ceramics board has approved acquisition of further
26% stake in Kajaria Infinity, out of which 14.56% has been acquired till June 22,
making the total stake to 65.56%. Kajaria Infinity has annual capacity of 5.70
MSM of polished / glazed vitrified tiles and operated at optimum capacity during
Q1 FY23.

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Investor Update Q1 FY23
 Subsidiaries
D. KAJARIA BATHWARE (P) LTD. (KBPL)
Kajaria Bathware is a subsidiary of Kajaria Ceramics Ltd, in which Kajaria owns 85% and
Aravali Investment Holdings, Mauritius, a wholly-owned subsidiary of WestBridge
……..Crossover Fund, LLC owns 15% stake.
a) Sanitaryware: The Sanitaryware plant is situated in Morbi (Gujarat) having
production capacity of 7.50 lac pcs p.a. And Plant has been producing more
value added products and operated at 77% in Q1 FY23.
b) Faucet: This facility is situated at Gailpur (Rajasthan) having 1.00 million
pcs p.a. Plant has operated at optimum capacity in Q1 FY23.

E. KAJARIA PLYWOOD PVT. LTD. (KPPL)

Kajaria Plywood Pvt. Ltd, a subsidiary of Kajaria Ceramics Ltd which was owning
97.89%. Kajaria Ceramics Ltd has further acquired 2.11% shares of KPPL in May 22,
making it a wholly owned subsidiary of Kajaria Ceramics Limited. KPPL is offering wood
panel products under the brand of KajariaPLY.

F. SOUTH ASIAN CERAMICS TILES PVT. LTD.

The Board has approved acquisition of 51% stake in South Asian Ceramics Tiles Pvt.
Ltd., Telangana by making investment of up to Rs. 28.50 crore. The Annual production
capacity of South Asian Ceramics is 4.79 MSM ceramic floor tiles.

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Investor Update Q1 FY23
Recent Expansions - Update
A. Gailpur Plant (Rajasthan)

The company has commissioned 4.20 MSM of ceramic floor tiles capacity at its
Gailpur location in the month of May 22.

B. Srikalahasti Plant (Andhra Pradesh)

The company has commissioned capacity of 3.80 MSM of value added glazed vitrified
tiles at Srikalahasti location in the month of May 22.

C. Kajaria Vitrified (Morbi, Gujarat)

The company has commissioned 4.40 MSM of polished vitrified tiles capacity at
Kajaria Vitrified plant at Morbi, Gujarat in the month of April 22.

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Investor Update Q1 FY23
Geographical Spread of the Production Capacity

ASSET OVERVIEW
Total Tile Capacity 82.80 MSM

38.50 MSM
(Gailpur, Rajasthan)

6.50 MSM
(Malootana, Rajasthan) 8.40 MSM
(Sikandrabad, U P)

5.70 MSM
Kajaria Infinity,
(formerly known
as Cosa
Ceramics Private Production Capacity (MSM)
Limited), Morbi, Ceramic Polished Glazed
Plant
Wall & Vitrified Vitrified Total
Gujarat)
Floor Tiles Tiles Tiles
8.80 MSM 1. Sikandrabad (UP) - - 8.40 8.40
12.00 MSM (Srikalahasti, Andhra 2. Gailpur (Rajasthan) 29.40 - 9.10 38.50
(Kajaria Vitrified, Pradesh)
(formerly known as 3. Malootana (Rajasthan) - 6.50 - 6.50
Jaxx Vitrified 4. Morbi (Gujarat) - 17.70 - 17.70
Private Limited), 2.90 MSM 5. Vijaywada (AP) 2.90 - - 2.90
Morbi, Gujarat) (Vennar, Vijayawada,
Andhra Pradesh) 6. Srikalahasti (AP) - - 8.80 8.80
Total 32.30 24.20 26.30 82.80

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Investor Update Q1 FY23
Expansions on card…..

A. Kajaria Bathware (Rajasthan)

In our faucet plant at Gailpur, we are adding new capacity of 6 lakh pieces per
annum, which will take the total the capacity to 16 lakh pieces per annum. Estimated
cost for this expansion is Rs. 5 crore approx. This expansion is expected to be
completed by October 2022.

B. Kerrovit Global Pvt. Ltd. (Gujarat)

The Board in its meeting held on 21st January, 2022, had considered that Kajaria
Bathware Pvt Ltd (KBPL), wholly owned subsidiary (WoS) to invest upto to Rs 80
crores in Kerovit Global Pvt Ltd (KGPL) to make KGPL as a WoS of KBPL and to set
up a sanitaryware manufacturing facility having production capacity of 8 lacs pcs p.a.
in the state of Gujarat. This expansion is expected to be completed by December
2023.

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Investor Update Q1 FY23
Income Statement

Financial highlights (Rs / Crores)

Q1 FY23 Q1 FY22 Growth FY 22 FY 21 Growth

Standalone Consolidated Standalone Consolidated Standalone Consolidated Standalone Consolidated Standalone Consolidated Standalone Consolidated

Net Sales 913.95 1008.22 499.67 561.66 83% 80% 3299.38 3705.19 2523.20 2780.90 31% 33%

EBITDA 136.79 153.59 73.43 80.42 86% 91% 531.56 610.69 460.22 508.82 16% 20%

EBITDA MARGIN 14.97% 15.23% 14.70% 14.32% 16.11% 16.48% 18.24% 18.30%

Depreciation 21.50 32.36 20.05 26.52 7% 22% 84.16 115.36 80.58 106.67 4% 8%

Other Income 12.27 8.09 9.52 6.00 29% 35% 43.77 27.57 38.25 21.30 14% 29%

Interest 2.05 3.61 1.35 3.02 52% 20% 6.12 12.73 5.08 10.71 20% 19%

Exceptional Items - loss (gain)

Profit Before Tax 125.51 125.71 61.55 56.88 104% 121% 485.05 510.17 412.81 412.74 17% 24%

Tax Expense 32.16 32.75 15.68 15.42 105% 112% 122.71 127.43 104.86 103.84 17% 23%

Minority Interest 0.66 -1.60 5.76 0.85

Profit After Tax 93.35 92.30 45.87 43.06 104% 114% 362.34 376.98 307.95 308.05 18% 22%

Cash Profit 114.85 124.66 65.92 69.58 74% 79% 446.50 492.34 388.53 414.72 15% 19%

Equity Share Capital 15.92 15.92 15.92 15.92 15.92 15.92 15.91 15.91

EPS (Basic) (Rs.) 5.87 5.80 2.89 2.71 103% 113% 22.76 23.69 19.37 19.37 18% 22%

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Investor Update Q1 FY23
Shareholding Pattern

As on 30th Jun. 2022

Equity Shares Outstanding – 159.20 millions

13.98%

NRI's Public / Others

0.38%

47.50%

Promoters

38.14%

FIs /FPIS / Mutual Funds

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Investor Update Q1 FY23
About Us

Kajaria Ceramics is the largest manufacturer of ceramic/vitrified tiles in India and

the 8th* largest in the world. It has present annual capacity of 82.80 mn. sq.
meters presently, distributed across eight plants - one at Sikandrabad in Uttar
Pradesh, one at Gailpur, one at Malootana in Rajasthan, three at Morbi in
Gujarat, one at Vijayawada and one at Srikalahasti in Andhra Pradesh.

For further information, please visit www.kajariaceramics.comor contact:

Mr. SanjeevAgarwal, CFO Mrs. Pallavi Bhalla, GM Investor Relations

+91 11 26946409 (Board), +91 11 26946409 (Board),
+91 11 41064110 (Direct) +91 11 40946552 (Direct)
Email: sanjeev@kajariaceramics.com Email: pallavibhalla@kajariaceramics.com

Disclaimer: Certain Statements in this document may be forward-looking within the meaning of applicable laws and regulations. And
actual results might differ substantially from those expressed or implied. Such statements are subject to certain risks and uncertainties
like regulatory changes, local political or economic developments, technological risks, and many other factors could cause our actual
results to differ. Kajaria Ceramics Limited will not be in any way responsible for any action taken based on such statements.
* As per Ceramic World Review

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Investor Update Q1 FY23