- 24 Jul 2024
- ICICI Securities
KAJARIA CERAMICS: MUTED PERFORMANCE; GROWTH TO PICK UP AHEAD
KAJARIACER - 939 Change: -19.25 (-2.01 %)News: Kajaria report muted set of numbers. Overall topline at ₹ 1114 crore, were up 4.6% YoY. Tiles sales volumes were up ~7.8% YoY at 27 MSM. Tiles revenues were up 3.4% YoY at ₹ 990 crore, with pricing decline of ~3.6% YoY. Muted topline growth (largely owing to lower realisation) impacted margins which declined by 90 bps YoY to 15%, despite benign power costs. Given the muted topline and lower margins, the PAT declined by ~16.5% YoY to ₹ 89.8 crore.
Views: The company reported modest tile volumes owing to softness in demand due to an election led quarter. The company remained confident regarding the positive demand outlook for the tiles industry for FY25. The management has guided for 11-12% volume growth for FY25 along with margin guidance which is likely to remain stable at 15-16% going forward.
Impact: Neutral