Building material players take a demand, margin hit in June quarter

Slowdown in construction activity, high inventory levels and cost spike key negatives

The building material sector faced a double whammy with moderate demand trends and margins pressures on a sequential basis in the June (Q1FY23) quarter. Listed companies in the key segments of the sector such as tiles, pipes and wood panels are expected to report a revenue fall in the 12-23 per cent range while their operating profits could see a steeper fall 16-32 per cent.

Listed tile makers Kajaria Ceramics (Kajaria) and Somany Ceramics (Somany) witnessed a fall of 13-16 per cent in volumes on a sequential basis with three year annual growth pegged at 4-5 per cent. Achal Lohade