- According to CRISIL Ratings “ Stable export demand and lower gas prices are expected to keep the operating profitability of ceramic tile makers firm this fiscal despite the impact of the Covid-19 pandemic on domestic demand”
- The Director of CRISIL said “ “Ceramic tile revenues are likely to de-grow 12% this fiscal, compared with a growth of 4.5% on average in the past five fiscal years, with exports limiting the slide in domestic sales. However, despite the revenue contraction, operating profitability of ceramic tile companies will remain ~11% due to lower gas prices.”
- Exports to key markets such as the US and the UK, which contribute to about 9% of overall ceramic tile exports, are expected to grow a robust 50% following the anti-dumping duty (ADD) imposed by the US on Chinese tiles earlier this year
- The domestic market, which accounts for 65% of the sector’s revenue, is expected to see a de-growth of about 18% due to the nationwide lockdown in April and May. Demand from institutional real estate, constituting 65% within the domestic market, is expected to decline 35% on-year in the current fiscal, as fresh construction activity has moderated. However, retail demand is expected to grow 15%, mainly from Tier 2 and 3 cities, cushioning the fall to an extent.
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