Company Overview - Royalceramics

FY24E and FY25E
Revenue	12000	13000	25000

	Period		FY21	FY22	FY23	4Q23	1Q24	2Q24	3Q24E	4Q24E	FY24	1Q25E	2Q25E	3Q25E	4Q25E	FY25E	FY26E	FY27E	FY28E	FY29E
1	Tile & Associated Items		31,964.8	38,423.7	46,787.2	12,914.4	9,343.2	11,060.9			43,261.9
	YoY		57.3	20.2	21.8						-7.5

2	Sanitaryware		3,285.2	3,621.8	3,395.0	770.7	674.8	799.2			3,747.7
	YoY		30.8	10.2	-6.3						10.4

3	Packaging Material		3,824.4	5,985.9	8,062.3	1,022.0	1,655.0	1,705.3			6,963.3
	YoY		4.1	56.5	34.7						-13.6

4	Aluminium Products		3,767.2	6,935.8	4,933.7	1,272.9	1,021.2	1,614.7			7,200.1
	YoY		20.0	84.1	-28.9						45.9

5	Other		5.5	13.7	28.0	-3.5	8.2	11.8			19.0
	0		0	0	0						0

	Period		FY21	FY22	FY23	3Q24E	4Q24E	FY24	1Q25E	2Q25E	3Q25E	4Q25E	FY25E	FY26E	FY27E	FY28E	FY29E
1	COGS		28,168.9	32,946.5	37,676.1	9,660.3	8,183.3	9,183.0			37,704.5
	- As a % of sales		59.3%	57.4%	57.4%	0%	64.4%	60.4%			59.0%

2	Administration		-76.9	300.6	1,228.8	570.6	354.2	483.3			1,791.4	0
	- As a % of sales		3.7%	3.9%	4.9%	0%	6.6%	6.3%			6.1%

3	Selling & Distribution		5,528.8	6,172.4	7,972.5	2,111.8	1,862.7	2,043.6			8,253.5
	- As a % of sales		11.1%	10.3%	11.7%	0%	14.7%	13.5%			12.4%

4	Capital Expenditure		1,839.9	3,162.9	5,605.1	1,492.2	1,813.2	2,288.0		0	7,509.8	00	0	00	0
	- As a % of sales		4.1%	5.8%	8.9%	9.3%	14.3%	15.1%			12.3%

	Fixed Assets - Cost	FY21	FY22	FY23	3Q24E	4Q24E	FY24E	1Q25E	3Q25E	FY28E
1	Balance B/F	39,189.3	41,427.5	46,233.6	0.0	50,458.1	0.0	0.0	50,458.1	60,232.1
	Capital Expenditure	1,839.9	3,162.9	5,605.1	1,492.2	1,813.2	2,288.0	222
	Balance C/F	41,427.5	46,233.6	50,458.1	0.0	0.0	0.0		60,232.1

Depreciation	FY21	FY22	FY23	3Q24E	4Q24E	FY24	1Q25E	2Q25E	3Q25E	4Q25E	FY25E	FY26E	FY27E	FY28E	FY29E
Balance B/F	13,497.4	12,737.4	14,122.8	-35,208.6	17,317.5	0.0	0.0		17,317.5					19,000.5
Depreciation charge	1,890.4	1,966.9	2,039.1	511.5	478.8	468.4			2,119.6
- As a % of sales	4.2%	3.6%	3.2%	3.2%	3.8%	3.1%			3.5%
Balance C/F	12,737.4	14,122.8	17,317.5	-33,140.6	0.0	0.0	111	111	19,000.5	111	111	111	111	111	111	111	111	111
Net Book Value at end	28,690.2	32,110.8	33,140.6	33,140.6	0.0	0.0			41,231.6

2	Working Capital

Period	FY21	FY22	FY23	3Q24E	4Q24E	FY24	3Q25E
2.1 Accounts and notes receivables	4,468.0	5,407.0	6,427.3	0.0	0.0	0.0	5,736.1
- As a % of sales	9.9	9.8	10.2	0	0	0	9.4
Four Qtr Cum. Revenue				15,191.9	27,894.4	43,871.0
Four Qtr Cum. COGS				-9,183.0	-17,366.3	-27,026.5

	2.2 Inventories		11,100.8	13,472.6	25,061.1	25,061.1	25,064.2	24,626.3			28,689.6
	- As a % of COGS		39.4	40.9	66.5	259.4	306.3	268.2			76.1

	2.3 Prepayments		1,004.9	2,871.5	4,206.3	4,206.3	3,389.0	3,254.4			2,723.5
	- As a % of sales		2.2	5.2	6.7	26.3	26.7	21.4			4.5

	2.4 Accounts payable		2,787.3	3,736.8	2,684.8	5,965.8	5,368.7	6,149.3			3,208.1
	- As a % of COGS		9.9	11.3	7.1	61.8	65.6	67.0			8.5

2.5 Other	2,283.9	5,341.3	12,004.9	0.0	0.0	0.0	10,000.0
- As a % of COGS	0.0	0.0	0.0	0.0	0.0	0.0
Working Capital				42673.1
Change in Working Capital						-2,992.4

Interest Bearing Debt	FY21	FY22	FY23	3Q24E	4Q24E	FY24	1Q25E	2Q25E	3Q25E	4Q25E	FY25E	FY26E	FY27E	FY28E	FY29E
Opening balance	7,196.5	6,061.2	5,222.5	20,270.6	2,572.4	20,612.7	19,955.8		19,586.3
Issuance of debt	654.5	1,527.1	1,153.0	0.0	18,040.3	0.0			9,353.4
Repayment of debt	1,768.5	2,414.5	2,636.2	0.0	0.0	656.9			1,127.9
Closing balance	6,061.2	5,222.5	2,572.4	19,586.3	20,612.7	19,955.8			10,795.6
Adjustments	-21.3	48.7	-1,167.0	0.0	0.0	0.0
Interest Expenses	nan	nan	nan	nan	nan	nan			nan
Average Interest rate (%)	9.2	6.0	22.1	0	0	0	%	%	11.5	%	%	%	%	%	%	%	%	%

Leases	FY21	FY22	FY23	3Q24E	4Q24E	FY24	1Q25E	2Q25E	3Q25E	4Q25E	FY25E	FY26E	FY27E	FY28E	FY29E
Lease - Opening balance	1,505.5	1,386.4	1,452.1	0.0	1,334.3	0.0	0.0		1,334.3					1,395.3
Additions	82.2	216.1	250.4	0.0	-1,334.3	0.0
Payments	362.7	332.0	372.1	0.0	0.0	0.0			396.2
Closing balance	1,386.4	1,452.1	1,334.3	0.0	0.0	0.0			1,395.3
Adjustments	-38.8	-4.3	-208.0	0.0	0.0	0.0			-25.2
Lease Interest expenses	200.2	185.9	211.9	0.0	0.0	0.0			207.2
Average Interest rate (%)	13.8	13.1	15.2	0	0	0	%	%	15.2	%	%	%	%	%	%	%	%	%

Interest Income	FY21	FY22	FY23	3Q24E	4Q24E	FY24	1Q25E	2Q25E	3Q25E	4Q25E	FY25E	FY26E	FY27E	FY28E	FY29E
i. Cash & CE Balance C/F			15,383.1	3,601.5	2,074.6	1,562.9		3,601.5	3,080.1
ii. Interest Income	82.9	493.5	1,152.6	185.9	90.8	104.1			358.3
Average Interest Income Rate	1.5	3.2	31.4	5.1	2.9	3.9	%	%	11.4	%	%	%	%	%	%	%	%	%

Tax	FY21	FY22	FY23	3Q24E	4Q24E	FY24	1Q25E	2Q25E	3Q25E	4Q25E	FY25E	FY26E	FY27E	FY28E	FY29E
Profit Before Tax	9,859.8	16,707.2	14,447.1	2,812.5	1,405.6	3,327.3			12,079.4
Opening balance	177.9	955.5	1,470.9	-2,450.7	1,233.2	389.9	-447.8
Current Income Tax	1,367.8	2,922.1	3,559.5	0.0	0.0	0.0			3,240.4
Taxes paid	609.1	2,383.0	5,157.1	1,235.5	843.3	837.8	0.0		3,126.1					3,240.4
Closing balance	955.5	1,470.9	1,233.2	-3,686.2	389.9	-447.8			1,360.6
Effective Tax Rate (%)	0	0	0	0	0	0	%	%		%	%	%	%	%	%	%	%	%

Income Statement	FY21	FY22	FY23	1Q24	2Q24	FY24
Combined Revenue	44,972.4	54,980.9	63,206.3	12,702.4	15,191.9	61,192.1
COGS	28,168.9	32,946.5	37,676.1	8,183.3	9,183.0
Gross Profit	16,803.4	22,034.4	25,530.2	4,519.1	6,009.0	23,487.6
Administration Exp.	-76.9	300.6	1,228.8	354.2	483.3
Selling & Distribution Exp.	5,528.8	6,172.4	7,972.5	1,862.7	2,043.6
Depreciation	1,890.4	1,966.9	2,039.1	478.8	468.4	2,119.6
7. Amortisation
Other Operating Expenses	-510.5	-6.1	-222.5	-281.6	117.9	nan
Operating Income	9,369.3	14,657.0	14,538.5	1,621.2	3,195.6	11,538.8
Interest Expenses	1,406.5	771.7	3,556.7			2,524.4
Interest Income	82.9	493.5	1,152.6	90.8	104.1
Other (Expenses)/Income	1,814.1	2,328.4	2,312.7	569.0	660.4	nan
Profit Before Tax	9,859.8	16,707.2	14,447.1	1,405.6	3,327.3	12,079.4
Tax Expenses	1,367.8	2,922.1	3,559.5	0.0	0.0
Profit After Tax	8,551.2	13,631.5	10,217.9	1,057.4	2,543.0
Other	-133.3	58.1	376.0	-2.2	-2.1	nan
Net Income	8,417.9	13,689.6	10,593.9	1,055.3	2,541.0

Cash Flow Statement	Forecast Ref.	FY21	FY22	FY23	1Q24	2Q24	4Q24E	FY24	FY25E
Profit Before Tax	From IS	9,726.4	16,791.2	15,310.1	1,403.4	3,325.3		12,256.8
Depreciation	From OA 1.1	1,890.4	1,966.9	2,039.1	478.8	468.4		2,119.6
Change in Working Capital	From OA 2	0.0	0.0	-13,418.5	-1,063.9	683.8		-2,992.4
Income Tax Paid	From OA 5	609.1	2,383.0	5,157.1	843.3	837.8		3,126.1
Other		7,070.9	-1,786.0	-8,441.4	-534.2	-838.5		-2,812.4
Net Cash Flow from / (used in) Operating Activities		18,383.1	14,881.2	-9,360.2	-478.7	2,891.9		5,768.4
Capital Expenditure	From CA 4	1,839.9	3,162.9	5,605.1	1,813.2	2,288.0		7,509.8
Other		-196.7	1,878.0	1,920.9	-35.5	527.8		1,966.8
Cash Flows from Investing Activities		-2,166.0	-1,569.1	-4,192.3	-1,848.7	-1,760.1		-5,902.7
Borrowings		18,726.5	24,897.6	27,418.9	9,106.7	2,075.7		33,964.3
Debt Repayments		24,611.0	22,244.1	22,244.1	8,716.8	2,065.4		28,568.3
10. Lease Additions
Lease Repayments		162.5	160.2	160.2	50.1	39.9		189.0
Other		-2,177.4	-6,257.7	-4,966.1	-162.3	-812.6		-3,789.8
Net Cash flows from / (used in) Financing Activities		-8,224.4	-4,226.5	48.5	177.5<	-842.1		1,417.1
Other		-9.2	331.0	20.5	5.4	0.6		-103.6
Net Increase/(Decrease) in Cash and Cash Equivalents		7,992.6	9,085.6	-13,504.0	-2,149.9	289.7		1,282.9
Balance adjustments as per company		1,012.1	2,053.9	3,755.9	4,373.4	3,571.4		2,055.2
Cash and CE at Start		-4,070.9	3,912.5	13,329.1	-154.4	-2,298.9	4Q	-154.4	1,024.9
Cash and CE at End		3,912.5	13,329.1	-154.4	-2,298.9			1,024.9

Balance Sheet	Notes	FY21	FY22	FY23	1Q24	2Q24	3Q24E	4Q24E	FY24	1Q25E	2Q25E	3Q25E	4Q25E	FY25E	FY26E	FY27E	FY28E	FY29E
Assets
Property Plant and Equipment - Net Book value	From OA 1	28,690.2	32,110.8	33,140.6	0.0	0.0			41,231.6
2. Right-of-use assets		1,980.3	2,045.1	2,069.7	2,069.7	2,069.7	2,135.5	2,135.5	2,135.5	2,135.5	2,135.5	2,135.5	2,135.5	2,135.5	2,135.5	2,135.5	2,135.5	2,135.5
3. Intangible assets		10,085.2	11,779.0	13,349.8	13,291.2	13,961.1	15,735.4	15,735.4	15,136.0	15,735.4	15,735.4	15,735.4	15,735.4	15,735.4	15,735.4	15,735.4	15,735.4	15,735.4
4. Investment in an associate		1,171.6	1,179.8	1,306.4	1,289.3	1,261.2	1,372.8	1,372.8	1,374.5	1,372.8	1,372.8	1,372.8	1,372.8	1,372.8	1,372.8	1,372.8	1,372.8	1,372.8
5. Other financial assets		1,257.6	1,241.8	1,112.5	1,123.5	1,250.4	1,144.4	nan	1,154.3	nan	nan	nan	nan	nan	nan	nan	nan	nan
6. Deferred income tax assets		0.0	0.0	146.8	203.2	236.7	235.5	235.5	206.9	235.5	235.5	235.5	235.5	235.5	235.5	235.5	235.5	235.5
Other		714.8	657.1	42.9	42.4	42.4	36.3	36.3	36.1	36.3	36.3	36.3	36.3	36.3	36.3	36.3	36.3	36.3
Non Current Assets		43,899.6	49,013.5	51,168.7	18,019.3	18,821.5			61,274.8
Inventories	From OA 2.2	11,100.8	13,472.6	25,061.1	25,064.2	24,626.3			28,689.6
Trade and Other Receivables	From OA 2.1	4,468.0	5,407.0	6,427.3	0.0	0.0			5,736.1
Prepayments	From OA 2.3	1,004.9	2,871.5	4,206.3	3,389.0	3,254.4			2,723.5
Other		40.2	29.3	32.3	30.6	33.8	37.9	37.9	43.1	37.9	37.9	37.9	37.9	37.9	37.9	37.9	37.9	37.9
12. Other financial assets		652.7	46.7	67.9	1,055.5	1,121.5	1,393.8	1,393.8	71.8	1,393.8	1,393.8	1,393.8	1,393.8	1,393.8	1,393.8	1,393.8	1,393.8	1,393.8
13. Income tax recoverable		49.2	17.6	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Cash and Cash Equivalents	From CFS	4,924.6	15,383.1	3,601.5	2,074.6	1,562.9			3,080.1
Current Assets		22,240.4	37,227.7	39,396.5	31,613.9	30,598.9			40,344.3
Total Assets		66,140.1	86,241.2	90,565.1	49,633.2	49,420.4
Equities and Liabilities
1. Stated capital		1,368.7	1,368.7	1,368.7	1,368.7	1,368.7	1,368.7	1,368.7	1,368.7	1,368.7	1,368.7	1,368.7	1,368.7	1,368.7	1,368.7	1,368.7	1,368.7	1,368.7
2. Reserves	33,427.7	3,627.1	3,627.1	4,795.2	4,794.7	4,803.0	5,575.6	5,575.6	5,568.9	5,575.6	5,575.6	5,575.6	5,575.6	5,575.6	5,575.6	5,575.6	5,575.6	5,575.6
Retained Earnings		25,401.4	30,632.5	33,427.7	33,765.9	35,631.4			37,830.4
nan		nan	nan	nan	nan	nan	0.0	nan	nan	nan	nan	nan	nan	nan	nan	nan	nan	nan
Equity attributable to equity holders of parent
5. Non-controlling interest		11,580.4	13,875.8	13,814.2	13,770.0	14,460.3	15,359.0	15,359.0	15,345.1	15,359.0	15,359.0	15,359.0	15,359.0	15,359.0	15,359.0	15,359.0	15,359.0	15,359.0
Total Equity		41,977.5	51,199.1	53,405.8	53,699.2	56,263.3			60,113.1
Long Term Debt	From OA 3	3,688.8	2,938.8	1,496.7	5,393.3	5,148.8			9,134.5
Financing and Lease Payables	From OA 4	1,386.4	1,452.1	1,334.3	0.0	0.0			1,395.3
Defined Benefit Obligation (Net)		1,635.5	1,524.4	1,184.4	1,224.7	1,263.7	1,513.1	1,513.1	1,476.6	1,513.1	1,513.1	1,513.1	1,513.1	1,513.1	1,513.1	1,513.1	1,513.1	1,513.1
Deferred Tax Liability (Net)		2,944.5	3,509.1	5,114.9	5,060.2	5,057.5	5,611.4	5,611.4	5,606.4	5,611.4	5,611.4	5,611.4	5,611.4	5,611.4	5,611.4	5,611.4	5,611.4	5,611.4
Other Non-Current Liabilities		134.0	128.3	15.0	15.0	15.0	34.5	34.5	34.5	34.5	34.5	34.5	34.5	34.5	34.5	34.5	34.5	34.5
Non Current Liabilities		9,651.1	9,346.4	8,958.2	11,693.2	11,485.0			17,366.0
Current Maturities of Long Term Debt	Added to LT debt in the forecast	2,372.4	2,372.4	1,075.6	15,219.4	14,807.0			1,661.1
Trade Payables	From OA 2.4	2,787.3	3,736.8	2,684.8	5,368.7	6,149.3			3,208.1
13. Amounts due to related parties		nan	nan	nan	0.0	0.0	0.0	nan	nan	nan	nan	nan	nan	nan	nan	nan	nan	nan
Income Tax Liabilities	From OA 6	955.5	1,470.9	1,233.2	389.9	-447.8			1,360.6
Other Accruals	From OA 2.5	0	0	0	0	0
Other		5,018.3	10,689.1	7,340.7	3,625.8	2,574.6	3,021.0	3,021.0	5,573.6	3,021.0	3,021.0	3,021.0	3,021.0	3,021.0	3,021.0	3,021.0	3,021.0	3,021.0
Bank Overdraft		956.1	1,967.6	3,674.7	0.0	0.0	1,899.0	nan	2,055.2	nan	nan	nan	nan	nan	nan	nan	nan	nan
Current Liabilities		14,511.4	25,695.7	28,201.2	25,063.0	24,364.2			24,140.0
Total Equity and Liabilities		66,140.1	86,241.2	90,565.1	90,455.5	92,112.5			101,619.1

DCF Valuation
Relative Valuation

DCF Enterprise Value

Period	Notes	FY25E
1. EBIT	From FF 6
2. Tax	From OA 4
3. Depreciation	From OA 1
4. Adjustments	User Input
5. Capital Expenditure	From CA 4
6. Changes in Working Capital	From OA 2
7. Free Cash Flow
8. Terminal Value
9. Total Free Cash Flow
10. Discount factor	Calculation
11. Present Value of Free Cash Flows	7*10=11

12. DCF Enterprise Value
13. Net (Debt)/Cash		-11,094.3
14. Pension Underfunding	From BS
15. Other	User input cell
14. Adjustment	User Input
15. DCF Valuation - Equity Value
16. Number of Shares		1,107.9
17. Price per Share (Rs.)

Weighted Average Costs of Capital (WACC)

	Symbol		User Input	Reference	Source for Reference
1. Risk Free Rate	Rf		%	18.8%	SL 10yr bond yield
2. Long term cost of debt	Kd		%	25.0%	Weighted avg. int. rate
3. Equity risk premium	Rp		%	10.0%	External Source
4. Beta	B		%	125.0%	CSE
5.Tax Rate	t		%	30.0%	SL tax rate
6. Debt Weighting	Wd		%	50.0%
7. Equity Weighting	We		%	50.0%
8. Cost of Equity	Ke	1+(3*4)=8		25.0%
9. WACC	Dr	(6(2(1-5)))+(7*8)=9		21.0%
10. Terminal Growth Rate			%	5.0%

	Notes	Price to Earnings	Price to Book Value	Price to Sales
1. Earnings/Book Value/Sales			60,113.1
2. Adjusted Multiple
3. Valuation (Rs. Millions)	1*2=3
4. Number of Shares (Millions)		1,107.9	1,107.9	1,107.9
5. Price per Share(Rs.)

Peer Multiples	Notes		Price to Earnings		Price to Book Value		Price to Sales





Average
Adjustment
Adjusted Multiple

Date	Research Organisation	Recommendation	Target Price (Rs.)
0	1241.797885	0	0

Valuation

DCF Enterprise Value

Weighted Average Costs of Capital (WACC)

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Period		3Q24E	4Q24E	FY24E	1Q25E	2Q25E	3Q25E	4Q25E	FY25E	FY26E	FY27E	FY28E	FY29E
Revenue
YoY %
EBITDA
EBITDA Margin %
Net Profit
Net Profit Margin %
Free Cash Flow

Valuation		Rs.Million	Price per Share (Rs.)	Share	Adjusted Valuation
DCF Valuation				%
Price to Earnings				%
Price to Book Value				%
Price to Sales				%
EV to EBITDA				%
Blended Valuation (Rs.)