Updated February 1st, 2024 at 07:38 IST
Kajaria Ceramics Q3 profit rises 40% to Rs 104 crore
The company's revenue from operations rose by 5.6 per cent to Rs 1152 crore, with sales up 6.4 per cent to 27.09 million square meters.
Kajaria Ceramics Q3 results: Kajaria Ceramics, a tile manufacturer, has reported a substantial 40.2 per cent increase in its third-quarter profit, driven by strong demand that overshadowed a slight rise in expenses. The company, facing challenges in the previous fiscal year due to soaring gas prices and weak demand, experienced a surge in demand this year, particularly from the housing and construction sectors. This growth is attributed to the Government's intensified focus on infrastructure development ahead of the general election.
Jefferies reports that Kajaria leads India's ceramic/vitrified tiles market with approximately a fifth of the market share. The firm disclosed a consolidated net profit of Rs 104 crore ($12.5 million) in the quarter ended Dec. 31, compared to 743.2 million rupees a year ago. Kajaria foresees a positive impact on tile demand in fiscal 2025 as the real estate sector enters an upturn.
The company's revenue from operations rose by 5.6 per cent to Rs 1152 crore, with sales up 6.4 per cent to 27.09 million square meters. Despite a 1.8 per cent increase in overall expenses, power and fuel expenditures, constituting a fourth of total expenses, decreased by almost 14 per cent.
Lower natural gas prices in 2023, though still relatively high, are advantageous for ceramic product manufacturers like Kajaria, reliant on fuel to power their tile kilns. In a separate development, Kajaria approved investments of up to Rs 500 million and Rs 300 million in Keronite Tiles and Kajaria Ultima, intending to make them a subsidiary and wholly-owned subsidiary, respectively.
Following the results, the company's shares settled up 2.74 per cent at 1382 apiece.
(With Reuters inputs)
Published January 31st, 2024 at 16:14 IST