India's Kajaria Ceramics misses Q2 profit view hit by weak tile demand

Kajaria Ceramics

20/10/2023 10:25

BENGALURU, Oct 20 (Reuters) - India's Kajaria Ceramics
 KAJR.NS  reported a weaker-than-expected second-quarter profit
on Friday, hurt by sluggish domestic demand for tiles.
    Consolidated net profit was 1.08 billion rupees ($13.00
million) in the quarter ended Sept 30, compared with 698.6
million rupees a year earlier when it was hit by high gas prices
and weak demand.
        Profit missed analysts' expectations of 1.22 billion
rupees, according to LSEG data.
        "Sustained weakness in domestic demand for tiles has
impacted our second quarter FY24 volumes," the company said in a
statement. 
    Revenue from tiles grew a moderate 2.9% to 10.13 billion
rupees.
    Consolidated revenue from operations rose 4.1% to 11.22
billion rupees.
    The company had in May projected revenue growth of 14-16%
for this fiscal year.
    Power and fuel expenses fell over 17% to 2.21 billion rupees
as natural gas prices remained largely stable during the
quarter.
    Lower prices of natural gas aid the margins of ceramic
product makers as they depend on fuel to power their tile kilns.
    Shares of the company fell as much as 3.1% after the
results.  
    
    
    
    
    
  
    


($1 = 83.1055 Indian rupees)

 (Reporting by Nishit Navin in Bengaluru; Editing by Dhanya Ann
Thoppil)
 ((Nishit.Navin@thomsonreuters.com;))