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Diversified Consumer services company Kajaria Ceramics announced Q2FY24 results:
Financial Performance:
- The consolidated revenue for Q2FY24 amounted to Rs 1,122 crores, reflecting a 4% increase compared to the same period last year.
- EBITDA margin improved to 16.02%, compared to 12% in Q2FY23, mainly due to a reduction in power and fuel costs.
- Profit before tax increased by 47% YoY in Q2FY24.
- Net Debt stood at Rs -392 crores as of September 30, 2023.
Sales and Volume Growth:
- Tile volumes grew by 6% YoY in Q2FY24, reaching 26.47 MSM.
- The company witnessed weaker than anticipated demand in H1FY24 but expects a gradual pickup in volumes in H2FY24, driven by the growth in the real estate sector.
- The recent commissioning of the Sikandrabad and Gailpur modernization/expansion projects is expected to contribute to future growth.
Subsidiaries and Diversification:
- Kajaria Ceramics has subsidiaries like Kajaria Vitrified Pvt. Ltd., Kajaria Infinity Pvt. Ltd., South Asian Ceramics Tiles Pvt. Ltd., Kajaria Bathware Pvt. Ltd., and Kajaria Plywood Pvt. Ltd.
- These subsidiaries are engaged in the manufacturing of polished vitrified tiles, glazed vitrified tiles, ceramic floor tiles, sanitaryware, faucets, plywood, and laminate products.
Expansion Plans:
- The company plans to invest up to 80 crores in Kerovit Global Pvt Ltd for setting up a sanitaryware manufacturing facility in Gujarat.
- Kajaria Ceramics is also planning to set up a 5.1 MSM capacity plant in Nepal in partnership with Ramesh Corp.
Shareholding Pattern:
- As of September 30, 2023, promoters hold a 47.49% stake in the company, followed by Foreign Institutional Investors (FII) with an 18.48% stake and Domestic Institutional Investors (DII) with a 25.45% stake.
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