- Shares of tile manufacturer Kajaria Ceramics Ltd fell around 2% on the NSE on Wednesday reacting to the company’s subdued June quarter earnings.
- The company’s volumes growth declined, impacted by covid-led restrictions, volumes fell 40% to 15.26msm in Q1FY22. Production volume declined by 19% sequentially, with average capacity utilization at 75%.
- The company’s management said that the average gas price increased to ₹31.5-32/SCM in Q1FY22 from ₹28/SCM in the previous quarter. SCM is short for standard cubic meters.
- In a bid to tackle cost inflation, the company’s management said it has increased prices by nearly 4.5% across all tile products.
- While the management did not share any guidance on margins for FY22, it is confident about achieving sales volume growth of 15% in FY22 despite the operating performance getting affected in Q1FY22
- Ebitda’s margin declined by 570 basis points (bps) to 14.3% in Q1FY22. Ebitda is short for earnings before interest, tax, depreciation, and amortization. One basis point is one-hundredth of a percentage point.
- The company announced that it will add 4.20 million square meters (MSM) of capacity at its Rajasthan plant. This would boost its production capacity of ceramic tiles from 25.20 msm per annum to 29.40 mm per annum. This expansion is expected to be completed by March 2022.
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