This presentation is related to the profitability analysis of cermic and tiles industry in India. The presentation is produced for an assignment of Financial Statement Analysis subject of MBA International Business course at Graduate School of Management Studies, Gujarat Technological University, Ahmadabad India.

1. International Accounting
Practices (IAP)
Profitability Analysis of
Ceramic's Industry
October 2018
Submitted to
Dr. Kaushal Bhatt
Assistant Professor
Gujarat Technological University
Submitted by:
Omeed Totakhel / R# 20
Darshan Chauhan / R# 45
Group No. 1

2. Introduction
BIO of sample companies
Basic comparation
Profitability analysis
Profit margin ration
Gross profit ratio
Return on investment
Performance
Conclusion
OVERVIEW OF THE CONTENTS

3. INTRODUCTION
Ceramics is a material used in production of tiles. A tile is a thin object
usually in a square or rectangular in shape. Tiles are often used to
form walls and floor coverings, and can range from simple square tiles
to complex shape.
There are two types of tiles
• Ceramic Tiles
• Porcelain Tiles
INTRODUCTION

4. CERAMICS TILES PORCELAIN TILES

5. KAJARIA
Dr. Ashok Kajaria
Chairman
• Established in 1985 (33 Years Old) by Ashok Kajaria
• Headquarter in India
• Total 5 Manufacturing plants with production
capacity of 63.9 Million Square Meters per year
• One of the biggest Indian Tile manufacturer
• Bollywood Start Akshay Kumar is the brand
Ambassador
Manufacturing Plants
Uttar Pradesh, Rajasthan (2 Plants), Gujarat, Andhra
Pradesh
Stock Price in National Stock Market: ₹ 337

6. SOMANY SANITARYWARE
Mr. Shreekant Somany
Chairman
• Established in 1969 (49 Years Old) by Shreekant
Somany
• Headquarter in India with significance presence in
Africa, the middle east, United Kingdom and Russia.
• Total 9 Manufacturing plants with production
capacity of 60 Million Square Meters by year
• Use 100% imported Italian Technology
Manufacturing Plants
Gujarat, Haryana and other states of India
Stock Price in National Stock Market: ₹ 380

7. NITCO LTD
Mr. Vivek Talwar
Chairman
• Established in 1953 (65 Years Old) by Mr. Pran Nath
Talwar and currently owned by Mr. Vivek Talwar.
• Headquarter in Mumbai and exports 20 percent of
its product to 24 countries including US and Europe
• The company has production capacity of 38 Million
Square Meters per year.
• The company is in loss for the past 5 years due to
charge of illegal activity
Manufacturing Plants
Mumbai
Stock Price in National Stock Market: ₹ 33

8. ORIENT BELL LTD
Mr. Aditya Gupta
Chairman
• Established in 1997 (21 Years Old) and the owner is
Aditya Gupta.
• Headquarter in New Delhi and with production
plants in Uttar Pradesh, Gujarat and Karnataka
• The company has production capacity of 12
(rounded) Million Square Meters per year.
• The company plans to diversify its operating to
importing and distribution of other construction
materials.
Manufacturing Plants
Uttar Pradesh, Gujarat and Karnataka
Stock Price in National Stock Market:
₹ 180

9. CERTA SANITARYWARE
Mr. Vidush Somany
Chairman
• Established in 1980 (38 Years Old) and the owner is
Vidush Somany.
• Headquarter in Gujarat and with production plants in
Bangalore and Chandigarh
• The company has production capacity of 20 Million
Square Meters per year.
• The company made huge investment in India and
along side with tiles they produce variety of
construction material
Manufacturing Plants
Gujarat, Bangalore and Chandigarh
Stock Price in National Stock Market:
₹ 2415

10. INTRODUCTIONBASIC COMPARATION
Variables KAJARIA SOMANY NITCO OB CERA
FIRM EXPERIENCE IN YEARS 33 49 66 21 38
SHARE PRICE IN INR 351 380 37.50 180 2,415
Production Capacity IN MSM 63.9 60 38 11.93 20
Total Asset in Crores 1831 1276 1251 431 950
Current Liability in Crores 339 565 271 657 280
Net Profit in Crore 253 64 50 40 99
RCEP 26 15 18 21 23

11. INTRODUCTIONANALYSIS – NET INCOME COMPARATION
COMPANIES 2014 2018 Increase/Decrease Inflation
KAJARIA 117 253 117.13 30.92
NITCO -211 193 302.16 313.40
CERA 52 99 90.73 26.05
SOMANY 28 64 128.57 57.55
ORIENT BELL 2 40 1873.69 116.89

12. INTRODUCTIONANALYSIS – NET INCOME COMPARATION
2014 2018
Net Profit Revenue Ratio Net Profit Revenue Ratio
Kajaria 117 1884 6 253 2651 10
Nitco -211 762 -28 193 607 32
Cera 52 670 8 99 1203 8
Somany 28 1262 2 64 1700 4
Orient Bell 2 696 0 40 661 6

13. INTRODUCTIONANALYSIS – Gross Profit Ratio
2014 2018
Companies COGS Revenue Ratio COGS Revenue Ratio
Cera 65 670 90 89 1203 93
Kajaria 275 1884 85 253 2651 90
Somany 170 1262 87 205 1700 88
Orient Bell 97 696 86 111 661 83
Nitco 152 762 80 152 607 75

14. 0
500
1000
1500
2000
2500
3000
Kajaria Cera Somany Orient Bell Nitco
Gross Profit Margin
R 14 R 18 COGS 14 COGS 18
ANALYSIS – Gross Profit Margin Chart

15. ANALYSIS – Gross Profit Margin Chart
Companies 2018 2014 Increase/Decrease
Kajaria 15% 23% -36
Nitco 15% -20% 173
Cera 11% 18% -42
Somany 5% 8% -36
Orient Bell 10% 2% 385

16. ANALYSIS – Performance Analysis
Variables
KAJARIA SOMANY CERA NITCO ORIENT BELL
AVG AVG AVG AVG AVG
Sales 2397 1621 930 747 667
COGS 15% 11% 14% 22% 13%
Operating Exp 72% 83% 73% 91% 84%
Gross Profit 13% 5% 13% -7% 3%
Other Expense 4% 1% 5% 1% 1%
Net profit 9% 3% 9% -6% 44%

17. OVERALL RANKING
Company Ranking
Kajaria 1
CERA 2
Somany 3
Orient Bell 4
NITCO 5

18. THANK YOU