Kajaria Ceramics

Tiles demand has been sluggish in the world's most populous country, with strong construction activity in western, eastern, and central India countering weakness in northern and southern parts

The company said its consolidated net profit fell to Rs 89.82 crore ($10.7 million) in the quarter ended June 30 from Rs 108 crore a year ago

Kajaria Ceramics, India's top tile-maker by market value, is the first among its peers to report results for the January-March quarter

A coalition of US ceramic tile suppliers has urged the federal government to impose tariffs on ceramic tile imports from India as it is impacting domestic industry due to subsidised imports by the Indian government. The Department of Commerce has instituted an investigation into this matter. Import of ceramics and tiles from India has increased significantly over the past few years, an association of the US ceramic and tiles industry has claimed alleging that these are impacting their domestic industry as the imports are subsidised by the Indian government. In a petition filed before the US International Trade Commission of the Department of Commerce, the Coalition for Fair Trade in Ceramic Tile (TCNA), which claims to represent more than 90 per cent of US tile production, seeks the imposition of tariffs estimated between 408 per cent to 828 per cent, alleging that there is ongoing massive and widespread dumping from India. American tile manufacturers have always welcomed fair ...

By comparison, categories like wood panel and tile-bathware could report mid to high single-digit growth rates

Even as the March quarter and FY24 volumes are likely to be on the lower side, management and brokerage commentary suggest that recovery could be strong in FY25

Separately, Kajaria approved investments of up to Rs 50 crore and Rs 30 crore in Keronite Tiles and Kajaria Ultima to make them a subsidiary and wholly-owned subsidiary, respectively

The company had in May projected revenue growth of 14-16% for this fiscal year

While strong exports are expected to help stabilise domestic market prices, the surge in gas prices over the past couple of months may have impacted margins in the second half of FY24

Analysts see investors to be out on the tiles

Although lower gas prices could offer some relief on margins

The combined market size of the building material sector could touch Rs 2.7 trillion by FY26 from Rs 1.3 trillion in FY22

The broader markets have pulled back sharply, with the benchmarks Sensex and Nifty 50 now up 15 per cent each from the June lows.

Slowdown in construction activity, high inventory levels and cost spike key negatives

Analysts have downgraded the related sectors, and have cut earnings estimates for FY23 and FY24 factoring the near-term challenges

Tiles maker Kajaria Ceramics on Wednesday announced the launch of its largest store in the country to sell tiles and bathware products. The 100th Kajaria Eternity World showroom, which has come up in an 11,000 square feet area in Lajpat Nagar, offers tiles and Kerovit bathware products under one roof. "Delhi is one of our most important marketplaces. This centrally positioned store will not only serve the residents of Delhi but also the people of the NCR region," Kajaria Ceramics Chairman & Managing Director Ashok Kajaria said in a statement. Kajaria Eternity is the company's premium brand, offering glazed vitrified tiles. "A bathroom is an essential part of any household...This is only the beginning; we intend to open more large stores across India, Kajaria Bathware Managing Director Rishi Kajaria noted. The store will also function as a resource centre where experienced professionals will teach customers how to make the most of their bathrooms, he said.

Tiles maker Kajaria Ceramics Ltd on Friday reported a 3 per cent rise in consolidated net profit at Rs 124.73 crore for the third quarter ended December 31.

Q3 results point to the trend; consolidation will continue, say analysts

The company said its operating margins have touched a new high of 21.68 per cent in the October-December quarter

The Indian tile industry is estimated to be worth nearly Rs 39,000 crore per year