Kajaria Ceramics Q3 PAT up 2.59% at Rs122.02cr as higher input and inventory costs offset gains

Kajaria Ceramics Ltd reported 27.43% growth yoy in total revenues for the Dec-21 quarter on consolidated basis at Rs1,068.23cr. On a sequential basis, the revenues were higher for the quarter by 9.73%. During the quarter,

Kajaria recorded growth of 27% in tiles at Rs962cr while the sales of bathroom fittings and sanitaryware were up 33.7% at Rs107cr. There was an 8% increase in output from 17.18 MSM to 18.59 MSM over last year.

Sales volumes were up 14% yoy at 25.64 MSM. The company has a negative net debt to equity ratio.

The consolidated Profit after tax (PAT) for the Dec-21 quarter was up 2.59% at Rs122cr on higher volumes and revenues, although these advantages were largely offset by a surge in input costs and inventory holding costs.

On a sequential basis, the net profits were up 5.06%. During the quarter, the EBITDA was up by 1% yoy but the EBITDA margins were sharply lower by 447 bps due to the pressure created by higher operating costs.

Net margins tapered from 14.19% in the Dec-20 quarter to 11.42% in the Dec-21 quarter. However, return on equity or ROE has gradually tapered higher for the company at 19.25% in Q3