cera sanitaryware ltd share price Management discussions

During the year your Company has made a steady progress and achieved positive results, by adapting new market practice, commitment to innovation and strategic planning. Your Company have been able to navigate the uncertainty of the past year and delivered strong financial performance.

1. Right product mix:

Your Company has successfully introduced new range of product to the portfolio, with the goal of expanding our customer base and increase revenue. Significant amount of time and resources were involved in developing and launching these products and the results have been promising. Your company believes that the success of our product mix has been due to our commitment to understand the customers need and providing them with innovative and high-quality products. We also leveraged our marketing strategies to maximize the visibility and accessibility of our products.

Some of the product led initiatives are listed below:

a) Senator by Cera reintroduced with new premium bathroom Suites and electronic smart toilet.

b) Lustre by Cera introduced with vibrant colours in Sanitaryware, Faucets and Allied categories.

c) Introduced Sensor based Tankless Wall hung closets.

d) Indias largest portfolio of One Piece EWCs launched with Vibe sense touchless flush technology.

e) Introduced new portfolio of modern, stylish and aspirational drop in, free standing, back to wall and air-water massage bathtubs

f) More than 500+ new designs launched in Tiles.

g) Also, introduced new portfolio of Kitchen Sinks and Customized Shower Partitions.

2. New Brand Ambassadors:

Your Company appointed Kiara Advani and Vijay Deverakonda as brand ambassadors to endorse our sanitaryware, faucets, wellness & tiles category. As we know, brand ambassadors play a crucial role in increasing the brand awareness, strengthening brand reputation, and driving sales growth.

Both the celebrities are recognized as superstars who have captivated the imagination of the next generation, the duo, with their impeccable charm and authentic sense of style, step into the world of CERA with an energy that captures the pulse of the youth. They bring their chic vibes into the bold, suave and young avatar of Cera.

Your Company believes that this association will help the brand reach new audiences and build stronger relationship with our existing customers and drive long-term growth for the company.

3. New Marketing Campaign:

Company launched a 360-degree marketing campaign. This is your space, Play it your way, featuring our two new brand ambassadors, style icons - Kiara Advani and Vijay Devarkonda. The new campaign showcased the brand and products in a young and glamorous avatar.

The campaign featured CERAs wide range of sanitaryware, faucets, and tiles with the latest styles and technology. It showcased the versatility of CERAs collection, that it has something for everyone. Something that goes with everyones style, whatever it may be - minimalist or maximalist, modern or classical.

The communication helped CERA to position as a dynamic, buzzy brand that cares about the unique personal style of the aspirational and discerning Indian millennials.

The campaign approach ensured that our statement "This Is Your Space. Play It Your Way" is heard to our relevant target audience everywhere in this media-rich world. From TV and magazine ads to innovative billboards, PR articles and social media content, we announced our arrival. Your brand took Indian television biggest impact properties along with brand big integrations such as Kaun Banega crorepati, Indian Idol, Kapil Sharma, Big boss and IPL T20 world cup play offs on Disney Hotstar.

We also reached out to Indias youth through digital media with lot of engaging social media content and fun activities such as "Play it your way" dance challenge which recently got concluded.

Our new look book with its latest design was highly appreciated by all our stakeholders.

4. Awards and recognitions

Your Company was awarded Super Brand 2023 and was also recognized for Realty + INEX Awards 2023 Marketing Campaign of the Year and Brand of the Year.

5. Retail Showrooms

To redefine customer experiences in your Company brand stores, we revamped the Kadi and Mumbai Cera Style Studio, and have plans for Chandigarh, Bengaluru and Morbi going ahead.

Also, your Company has successfully invested and expanded in the number of retail showrooms. Strategic decision to expand retail presence has resulted in significant growth and increased visibility of the brand. Your company opened 400+ Brand stores last year and crossed the overall milestone of 1000+ brand stores across India.

Making the product and brand visible through retail outlets and connect with customers and provide them hands-on experience has always been your Companys motto and this has also helped in establishing stronger relationship with consumers and build trust in your brand. Your Company does periodic audit of its retail outlets to ensure that the branding and product display are intact.

6. Exhibitions and Events

Your Company also participated in several large-scale exhibitions like Acetech - Mumbai, Ace Reflect, Vanitha Veedu, Credai, IID & IIA in more than 50 cities. These exhibitions provided your company to showcase latest products to a wider audience and your company was able to generate a significant amount of Business Leads. Participation in these exhibitions help your brand to strengthen reputation and increase the visibility in market.

7. Loyalty Program

Cera Superstar loyalty Program for retailers also achieved lots of success, building an over 15000 strong retailer community who enjoyed the benefits of their hard work with your company, through our loyalty rewards program, the largest in the industry. This program helped your company to build a stronger relationship with retailer partners and also increase secondary sales of our products.

8. Industry Structure and Developments

Your Company is present in all segments—from affordable to luxury.

9. Risks and Concerns

Any drastic change in Government policy may affect your Company

10. After-Sales Service:

Your Companys CERA Care team of technicians, with a 24- hour toll free call centre, and timely on-site service from the technicians to individual customers, has been one of its key strengths in generating customer loyalty and helping it garner word of mouth publicity.

11. Outlook

Your Company has been a preferred partner of CREDAI (Confederation of Real Estate Developers Associations of India), the apex body of developers, for the last seven years. Your Company also works closely with influencers and their associations like IIA (Indian Institute of Architects), IIID (Institute of Indian Interior Designers) and IPA (Indian Plumbing Association).

12. Internal Control Systems and their adequacy

The Company has an adequate system of internal financial controls with reference to the financial statements and also relating to the purchase of stores, raw materials, plant & machineries, equipment and various components and for the sale of goods commensurate with the size of the Company and the nature of business.

The system of internal control of the Company is adequate keeping in mind the size and complexity of your Companys business. Systems are regularly reviewed to ensure effectiveness. The internal auditors monitor and evaluate the efficacy and adequacy of internal control system in the Company, its compliance with operating systems, accounting procedures and policies. Based on the report on the internal audit function, necessary corrective actions in the respective areas are taken and thereby strengthen the controls. Significant audit observations and corrective actions thereon are presented to the audit committee of the board.

13. Key Financial Ratios: (in times / %)

S.N. Ratio	2022-23	2021-22
1. Inventory Turnover	5.41	6.30
2. Interest Coverage Ratio	54.09	46.56
3 Debtors Turnover (Refer Note No. I)	12.01	9.14
4 Current Ratio	3.23	3.05
5 Debt Equity Ratio	0.04	0.04
6 Operating Profit Margin %	16.26%	14.82%
7 Net Profit Margin %	11.67%	10.36%
8 Return on Net Worth %	19.28%	15.89%

 

Note :

Effective credit control steps including timely recoveries were taken during the current period resulting into reduction in Trade Receivables.

14. Financial performance with respect to operational performance is discussed in the main part of the Report.

15. Material Developments in Human Resources, Industrial Relations, Environment, Health & Safety

The thrust of your Company has been on talent improvement through training programmes.

Your Company continues to invest in training and development of its employees and has been organizing various training programmes from time to time. CERAs manpower strength as on 31^st March, 2023 stands at 2523.

The Company is ISO9001,14001 and BS 18001 certified. Your Company is also a member of Indian Green Building Council (IGBC), promoted by Confederation of Indian Industry (CII).