RO SRI L MAN Financi Key Da Reven Gross PAT Total a Total e Total d Ratios Revenu PAT gro GP mar NP mar ROE (% ROA (% Debt/E EPS (Rs DPS (Rs BVPS (R MPS (R PER (x) RCL, prod 4,000 per prese prod distri islan RCL grow the c tile s tiles Lanka which Indus high i local barri disco this. Stron to dif positi retail show incur belie YAL CER NKA EQUI UFACTURIN al Summary a (Rs.mn) e rofit ssets quity ebt e growth (%) wth (%) gin (%) gin (%) ) ) uity (%) .) .) s.) s.) he market le ction facilities sq. meters of ay. RCL ent ntly it is the o ct portfolio is bution networ . perates in a g h in construct nstruction in gment is witn as also contri still remains indicates the try protected n the past (du companies in t rs. High tarif rage imports g brand name: ferentiate and oned its bran experience th rooms this ye higher overh e such expansi AMIC L Y RESEARC G | 08 th Jun der in porcel Eheliyagoda porcelain tile ered into pro nly manufactu marketed un k of 41 showr rowing indust ion witnessed ustry is growi essing a CAGR buted to this at low range i growth potenti by tariffs: The to capacity c he low priced fs, taxes and and the local The existing s to maintain “Rocell” as ough its own s r to its existin ad costs rela ions are neede LANKA NKA PL e 2011 ain and cera nd Horana wh along with 1 duction of s rer of sanitary er the strong oms and 320 ry: The deman a rapid increa g at a rate of of 20% (apro actor. Nevert comparison t al of the indus market share nstraints of t ile segment) h minimum qu manufacturers vere competit he market sh lifestyle choi howroom net g network of ive to a net d to maintain i ECURITIE 3, 1, 6, 3, 2, ( ic floor tiles ich have the c 1,000 sq. met nitary ware i ware in Sri La brand name “ irect and sub d for tiles whi e in the recen 9.3% (2009:5. x). The shift in eless consum o the countrie ry. of the importe e local produc as been erode ality standard have immens ion requires a re. In this co ce giving its c ork. RCL expe 41. Although ork of distrib s brand positio S RESEAR FY09 41.2 43.5 17.9 98.5 60.5 11.4 FY09 7.7 15.2) 43.9 13.8 18.1 8.7 85.3 4.7 1.0 27.6 27.5 5.9 perates with apacity to pro rs of ceramic n April 2009 ka. The com Rocell” throug dealers acros ch is driven b t period. Pres %) while the taste toward tion of tiles i s with similar rs which rema ers and absen d by the regul s are in plac ely benefited strong brand n text RCL has stomers a un cts to open 10 wning showro utors/retailers, n. H PUBLI FY10 4,451.2 2,118.7 964.3 6,484.9 3,886.3 1,829.1 FY10 19.0 86.2 47.6 21.7 27.8 15.2 47.1 8.7 1.3 35.1 113.0 13.0 Sh CS Sh P M 5 P A S R V E S B two uce tiles and any h its the the ntly loor the n Sri GDP ined e of tory e to rom ame well ique new oms we ATION FY11 5,751.4 2,656.5 1,459.1 8,480.7 5,068.4 2,465.9 FY11 29.2 51.3 46.2 25.4 32.6 19.5 48.7 13.2 2.5 45.7 157.0 11.9 rice Volume C 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 ‐ ‐ are Informati E code ares in Issue ( blic holding ( arket Cap. (Rs. week range ( LANKA re rice Performa SI ector CL ajor Sharehol allibel One r.A.M.Weeras PF LIC –Life Fund OC a/c CeyBa B F 6, 3, 1, 10, 6, 2, F hart 4 ‐ A p r ‐ 1 0 4 ‐ J u l ‐ 1 0 ‐ ‐ n – Voting Sh R n) 1 ) 3 bn) 1 s.) 1 SECURITIESRE search@lanka w ce % 01m ‐0.3 ‐4.4 0.3 ders ‐ % (as at inghe k Unit Trust Y: Rs.1 Y12E 26.8 44.3 17.6 58.4 28.4 95.0 Y12E 17.0 17.7 46.7 25.5 29.6 18.3 42.8 15.5 2.3 58.9 55.0 10.0 4 ‐ J a n ‐ 1 1 4 A p r 1 1 re L.N0000 0.8mn .5 .2 0.3 – 168.8 EARCH ec.com w.lsl.lk 06m 10.5 19.1 ‐2.1 31 st Mar 2011 5.00 FY13E 8,560.5 3,593.0 1,941.4 11,850.4 8,120.4 2,595.0 FY13E 27.3 13.0 42.0 22.7 26.5 17.6 32.0 17.5 3.2 73.3 155.0 8.8 0 20 40 60 80 100 120 140 160 180 12m 66.0 58.1 101.0 ) 51.0 9.0 4.0 2.0 2.0