Kajaria Ceramics fell 2.37% to Rs 1064.05 after company's consolidated net profit slipped 39.85% to Rs 69.86 crore despite of 10.7% increase in net sales to Rs 1,077.76 crore in Q2 FY23 over Q2 FY22.
Profit before exceptional items and tax skid 36% year on year to Rs 100.23 crore in the quarter ended 30 September 2022. During the quarter, the company reported an exceptional loss of Rs 3.66 crore.Total expenses rose 20% to Rs 985.16 crore in Q2 FY23 as compared to Rs 823.93 crore posted in Q2 FY22.
In Q2 FY23, EBITDA slumped 28% to Rs 129.41 crore compared to Rs 180.49 crore posted in corresponding period last year. EBITDA margin declined to 12.01% in Q2 FY23 as against 18.54% in Q2 FY22.
The company's chairman said, Second quarter was one of the toughest quarters in terms of the subdued demand scenario and disruptions in natural gas supply followed by unprecedented increase in gas cost. Nonetheless, recent corrections in price should have a positive impact on margins going forward.
The quarter saw flattish volume growth but a decent revenue growth of 11% as compared to Q2 FY22. Consolidated revenue for the quarter stood at Rs 1,078 crore as against Rs 974 crore over the corresponding period of the previous year and profit after tax was Rs 70 crore compared to Rs 116 crore in the corresponding period of previous year.
The Indian economy continues to rise up to the new challenges presented by the ongoing global crisis, which continues to create a high inflationary environment and disruption in supply chain globally. The tile industry should witness gradual demand pickup post festive seasons due to continued traction in the real estate sector and government's focus on infrastructure spending in spite of high input costs and increasing interest rates.
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 84.45 million sq. meters (MSM) presently, distributed across eight plants - one at Sikandrabad in Uttar Pradesh, one at Gailpur, one at Malootana in Rajasthan, two at Morbi in Gujarat, one at Vijayawada, one at Srikalahasti in Andhra Pradesh and one at Balanagar in Telangana.
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