- 27 Jul 2023
- ICICI Securities
LOWER GAS PRICES CONTINUE TO DRIVE MARGIN RECOVERY
KAJARIACER - 847 Change: -9.20 (-1.08 %)News: Topline was up 5.6% YoY at Rs 1064 crore. Tiles sales volumes were up ~7.2% YoY at 25 MSM. Tiles revenues were up 5.3% YoY at Rs 957 crore, with pricing decline of 1.7% YoY. EBITDA was at Rs 169 crore, up 10.2% YoY, with resultant margins at 15.9%, up 67 bps YoY and 130 bps QoQ, on account of decline in gas prices and benefits of alternate fuel in the overall mix. PAT was at Rs 108 crore, up 17% YoY, given the superior margins.
Views: The performance was healthy and benefits of lower gas prices is visible and likely to have more flow through effect, going ahead as volumes picks up. We highlight that the management has guided for ~13-15% YoY volume growth in the tiles segment and ~14-16% revenues growth during FY24. Furthermore, from the earlier guided margin range of 14-16% for FY24, the management indicated that further margin expansion is likely as volume recovery picks up from September, 2023 onwards.
Impact: Positive