On a consolidated basis, Kajaria Ceramics' net profit tumbled 39.09% to Rs 74.32 crore in Q3 FY23 as against Rs 122.02 crore in Q3 FY22.
Revenue from Operations was at Rs 1,091.13 crore in the quarter ended 31 December 2022, up 2.14% from Rs 1,068.23 crore reported in the same period last year.
Profit before tax dropped 37.75% to Rs 99.71 crore in Q3 FY23 from 160.18 crore registered in 160.18 crore in Q3 FY22.
EBITDA fell 28% to Rs 133.07 crore in Q3 FY23 from Rs 183.84 crore posted in Q3 FY22. EBITDA Margin reduced to 12.20% as compared with 17.21% reported in the corresponding quarter previous year.
Total expenses rose 9.11% year on year to Rs 998.90 crore in Q3 FY23. Cost of material used stood at Rs 264.22 crore (up 17.5% YoY) while employee benefit expenses was at Rs 116.58 crore (up 9.36% YoY).
The company's chairman said, This quarter has been challenging in terms of performance. The overall volumes were impacted by the prolonged monsoon season and the festive period in the month of October 2022. However, there has been some recovery in demand during November and December, indicating a positive trend going forward.
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The EBITDA margin for Q3 FY23 was 12.20%, a decline of 500 basis points compared to the same period in the previous year. The primary cause of this decline was disruption in natural gas supply and an unprecedented increase in gas prices. However, fuel cost has started to come down since December 2022, primarily due to the increased use of alternative fuels and some fall in gas prices. The full impact of these changes is expected to be visible by March 2023.
Overall, the company has seen decent growth in the first nine months, with a 12% increase in volume and a 22% increase in revenue. The company is dedicated to its growth strategy, which includes expanding market share and increasing the number of dealers across India, particularly in unrepresented territories. The company is confident that its strong foundation and commitment to excellence will continue to drive its success in the upcoming quarters, both in terms of sales and profitability.
The company's board has approved an interim dividend of Rs 6 per share for the financial year 2022-23. The record date for the same has been fixed on Wednesday, 8 February 2023 and the payment of the dividend will be made on/before 26 February 2023.
Kajaria Ceramics' board has also approved an additional acquisition of upto 11,40,968 equity shares of Rs 10 each of Kajaria Vitrified (KVPL), a subsidiary company, at a cash consideration of Rs 1,80,04,475. Presently, the company holds 87.37% equity shares in KVPL and after completion of the proposed acquisition, holding of the company in KVPL would be increased to 95%.
Further, the board of directors of the company has given a green light to divest its entire stake (i.e. 1,22,40,000 equity shares of Rs 10 each) in Vennar Ceramics (Vennar), a subsidiary company in a phased manner, at a consideration of Rs 18.25 crore. The firm will receive the consideration in five equal instalments, starting from 1 April 2023 to 31 March 2024.
Kajaria Ceramics is the largest manufacturer of ceramic/vitrified tiles in India and the eighth largest in the world. It has present annual capacity of 84.45 million sq. meters (MSM) presently, distributed across eight plants - one at Sikandrabad in Uttar Pradesh, one at Gailpur, one at Malootana in Rajasthan, two at Morbi in Gujarat, one at Vijayawada, one at Srikalahasti in Andhra Pradesh and one at Balanagar in Telangana.
Shares of Kajaria Ceramics rallied 4.51% to end at Rs 1,097.30 on Friday, 27 January 2023.
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