Kajaria Ceramics (NSE:KAJARIACER) is one of India’s largest manufacturers of ceramic and vitrified tiles. The company was founded in 1985 and has its headquarters in New Delhi. Kajaria Ceramics offers a wide range of tiles for both residential and commercial use, including floor tiles, wall tiles, and outdoor tiles. The company has a strong distribution network across India and exports its products to several countries.
Kajaria Ceramics, has reported its financial results for the quarter. The company’s topline grew by 2.1% YoY to INR 1091 crore, with tiles sales volumes remaining muted at 25.5 million square meters (MSM), down ~0.7% YoY. The company’s three-year volume compound annual growth rate (CAGR) stood at 8%. Despite muted sales volumes, the company’s tiles revenues increased by 2.3% YoY to INR 984 crore, with pricing growth of ~4% YoY. The company provided some dealer discounts in November/December after a sharp dip in demand in October due to festive holidays.
Kajaria Ceramics’ EBITDA was INR 133 crore, resulting in margins of 12.2%, down 500 basis points (bps) YoY but up 20 bps QoQ. The company’s PAT was INR 74.3 crore, down 39% YoY but up 6.4% QoQ. The company’s muted sales volumes can be attributed to the impact of the ongoing COVID-19 pandemic and the festive season holidays. However, the company’s focus on quality and innovation, coupled with its strong distribution network, has helped it to maintain its revenue growth.
Overall, Kajaria Ceramics’ financial results for the quarter are mixed, with muted sales volumes and a decline in PAT. However, the company’s strong revenue growth, despite challenging market conditions, is a positive sign. The company’s focus on quality, innovation, and customer satisfaction, coupled with its commitment to reducing its environmental impact, should help it to continue to grow and maintain its market leadership in the highly competitive ceramic and vitrified tiles market.