Royal Ceramics pre-tax profit tops Rs. 2 b

Royal Ceramics Plc (RCL) has seen its best ever performance in the financial year ended on 31 March 2012 with Group pre-tax profit topping the Rs. 2 billion mark and net profit attributable to equity holders also reaching a record high.

As per provisional results released last week, RCL Group pre-tax profit grew by 31% to Rs. 2.01 billion whilst net profit attributable to equity holders amounted to Rs. 1.95 billion, up by 36% over 2010/11 financial year.

The record bottom line was powered by robust performance of RCL’s flagship tiles business and impressive profits in its new line sanitary ware. RCL’s profits were also boosted by Rs. 269 million income from sale of shares whilst overall other operating income was Rs. 303.8 million, up by 42% over 2010/11 financial year. Additionally there was Rs. 81 million contribution as profit from associate. During the fourth quarter RCL increased stake in LB Finance Plc to 25.85% from 4% previously with an investment of Rs. 2.47 billion. However, only the quarter’s last month had been consolidated into the accounts.

LB Finance, the fastest growing in the league, in the first nine months of FY12 reported a net profit of Rs. 1.13 billion, up by 81% over the corresponding period of last financial year.

For RCL at Company level other operating income amounted to Rs. 2.2 billion due to Rs. 1.8 billion dividend received from fully owned subsidiary Royal Porcelain Ltd.

Last quarter performance has been healthy as well with after-tax profit of Rs. 475 million, up from Rs. 422 million a year earlier but lower in comparison to Rs. 595.7 million achieved in the third quarter of 2011/12 financial year.

Group turnover in FY2012 was Rs. 7.75 billion, up by 21% over the previous year whilst gross profit rose by 24% to Rs. 3.3 billion. Fourth quarter revenue was Rs. 1.94 billion, up from Rs. 1.7 billion a year earlier but lower in comparison to Rs. 2.3 billion in the third quarter.

Revenue from tiles had grown to Rs. 6 billion from Rs. 5.1 billion whilst sanitary ware brought in Rs. 897.3 million from Rs. 596 million. Net profit from the latter grew to Rs. 214 million from Rs. 31.2 million in FY2011 whilst tiles bottom line was Rs. 1.69 billion, up from Rs. 14 billion in the previous year.

RCL Group assets crossed the Rs. 11 billion mark to finish the FY2012 at Rs. 11.4 billion, up from Rs. 8.4 billion. At company level it rose from Rs. 5.8 billion to Rs. 8.2 billion. This included Rs. 3.1 billion in investments in Associates which included 20% stake in Delmege Ltd., acquired for Rs. 625 million in June 2011. A post-balance sheet development was in April RCL acquired 51% stake in Asia Siyaka Commodities for Rs. 336 million.

Retained earnings at Group level topped the Rs. 5 billion, from Rs. 3.5 billion, whilst at company level it rose to Rs. 3.58 billion from Rs. 2 billion. Current liabilities amounted to Rs. 3.1 billion (Group) from Rs. 2.2 billion in FY2011 whilst non-current liabilities rose from Rs. 1.15 billion to Rs. 1.77 billion.  

Net asset per share rose to Rs. 44.72 from Rs. 30.94 whilst earnings per share rose to Rs. 17.78 from Rs. 12.40 at company level.

Apart from Rs. 2 interim dividend paid in February 2012, final dividend for 2011/12 FY is yet to be declared. Last year RCL paid a dividend of Rs. 2 per share over its 2010/11 results which were also a record with Rs. 1.44 billion (attributable to ordinary shareholders) and Rs. 1.53 billion at pre-tax level.