Kajaria Ceramics spurts after stellar Q1 earnings

21 Jul 2022 , 02:54 PM

Net sales soared 80% to Rs 1,008.22 crore for the quarter ended 30 June 2022 compared with Rs 561.66 crore in the same period a year ago The company reported profit before tax of Rs 125.71 crore in Q1 FY23, steeply higher than Rs 56.88 crore in Q1 FY22. EBITDA jumped 91% to Rs 153.59 crore in Q1 FY23 as against Rs 80.42 crore in in Q1 FY22. EBITDA margin increased to 15.23% in Q1 FY23 as against 14.32% in Q1 FY22. The companys chairman said, We are very pleased with our first quarter performance, which again demonstrated the power of sustainable business against a backdrop of geopolitical volatility and high commodity prices. We got off to a great start this fiscal year, generating Rs 1,008 crore in revenue, up 80% year on year. Coming off a strong finish to FY22 last quarter, this is now our seventh straight quarter delivering double digit revenue growth. He further added, EBITDA margin for the quarter remains same at 15% even with escalating inflation across all inputs and rise in gas costs. The industrys demand scenario continues to be healthy given traction in the real estate sector despite high input costs and increasing interest rates. At present we are witnessing a greater momentum in the tier II and below markets vs the metros. Also, the recent correction in commodity prices and the forecast of a good monsoon are encouraging. Meanwhile, the companys board has approved acquisition of 51% equity shares of South Asian Ceramic Tiles (South Asian) in Telangana at a cash consideration upto Rs 28.50 crore and accordingly, South Asian will become a subsidiary of the company, after completion of the acquisition. South Asian is engaged into the business of manufacturing of tiles. Kajaria Ceramics said that the object of the acquisition is to have a foothold in South India thereby enlarging the tiles markets to make more dealers and even to cater small size dealers, by reducing the transit time and by increasing the rotation of re-ordering by the dealers of the company. Indicative time period for completion of the acquisition is approximately 6 months. Kajaria Ceramics is the largest manufacturer of ceramic/vitrified tiles in India and the eighth largest in the world. It has present annual capacity of 82.80 million sq. meters (MSM) presently, distributed across eight plants – one at Sikandrabad in Uttar Pradesh, one at Gailpur and one at Malootana in Rajasthan, three at Morbi in Gujarat and one at Vijayawada and one at SriKalahasti in Andhra Pradesh. Powered by Capital Market – Live News