Kajaria Ceramics: Q2FY23 Result Update
14-11-2022

Market Cap: Rs. 16,394 cr

CMP: Rs. 1,030 | PE 43x

Results	INR Crore	YoY Growth	Comments
Revenue	1078	11%	Change in product mix, increase in realizations.
EBITDA	129	-29.8%	Increase in gas cost and advertisement cost.

Click here for 10-year X-ray

Key Highlights:-

· Q2FY2023 consolidated revenue from
operations increased by 11% year-on-year to Rs.1078 Crores from Rs.974 Crores in Q2
FY2022 mainly because of increase in realization and some change in product mix.

· Revenue from the bathware segment was flattish in Q2 to Rs.74 Crores as compared to
corresponding quarter previous year.

· Revenue from plywood segment grew by 17% from
Rs.17 Crores to Rs.19 Crores in Q2.

· EBITDA margin for this quarter stood at 12.01% as
compared to 18.54% in the corresponding quarter of the previous year.

· A sharp decline in
margin was mainly because of the increase in gas cost by 70% from Rs.37 to Rs.62 per
SCM and increase in advertisement cost by 40%.

Management Outlook:-

· Management expects the gas cost to come down sharply leading to lower costs and easing of margin pressure.

· Planning CAPEX in Nepal to capture the domestic market which currently is satisfied by Indian imports, but is quite costly to 45% import duty on tiles.

· Total investment in Sikandrabad plant focusing on GVT to be INR 80 cr total, out of which 50 cr will be done this year, and in Nepal, it should be 30 cr this year and 95 cr next year.

· Currently 1700 dealers all across India, plan to add around 300 more per year.

· The market size should be roughly 21000 Crores for the year ending 2022 and around
22000 Crores for year ending 2023.