Kajaria Ceramics declares ₹6 per share dividend, PAT down 39% in Q3

The company said in a stock exchange filing that its board of directors has declared an “interim dividend of Rs. 6 per share of Re. 1 each for the financial year 2022-23 and Wednesday, the 8th February, 2023 as the ‘Record Date’ for determining the eligibility of the members of the Company for the above interim dividend. The said interim dividend will be paid on/before February 26, 2023.”

The board of Kajaria Ceramics has approved the acquisition of additional 11,40,968 equity shares. Kajaria Vitrified (KVPL), a subsidiary firm, 10 each for total cash payment 1,80,04,475. The company’s equity stake in KVPL now stands at 87.37%, and after completion of the planned acquisition, it will climb to 95%.

Kajaria Ceramics also said in a stock exchange filing that its board has approved “modernization of manufacturing facility at Gelpur (Rajasthan) for ceramic tiles by replacing existing kilns with latest model kilns for large size ceramic tiles.” Other latest equipments, as may be required. The said modernization is expected to cost Rs.51.11 crores and to be completed by July 2023. The said modernization will result in cost/energy savings as well as large production of ceramic tiles. The company will further benefit through better quality including size.”

The Board of Kajaria Ceramics has also approved the sale of the entire stake of Kajaria i.e. equity shares worth Rs 1,22,40,000. 10 each in the subsidiary company Vennar Ceramics Ltd. in a phased manner on a consideration of Rs. 18.25 crores. The expected date of completion of the sale/disposal is March 31, 2024.

On Consolidated Basis, Kajaria Ceramics’ Net Profit Drops 39.09% YoY 74.32 cr in Q3FY23 as against 122.02 crore was recorded in Q3FY22. Revenue from operations for the quarter ending December 31, 2022 was 1,091.13 crore, an increase of 2.14% from 1,068.23 crore was recorded for the corresponding period last year. Profit Before Tax (PBT) decreased by 37.75 percent 99.71 cr in Q3 FY23 from 160.18 crore in Q3 of FY22. from 183.84 crore in Q3 FY22 133.07 crore in Q3 FY23, a decline of 28% YoY in EBITDA.

Commenting on the Q3 performance, Mr. Ashok Kajaria, CMD, said, “The quarter has been challenging in terms of performance. The overall volumes are likely to be impacted by the prolonged monsoon season in October 2022 and the festive period However, there has been some improvement in demand during November and December, indicating a positive trend going forward. Consolidated revenue for the quarter stood at 1091 cr as compared to 1068 crores from the corresponding period last year, representing an increase of 2%.

He further added that “EBITDA margin for Q3FY23 stood at 12.20%, a decline of 500 basis points as compared to the same period last year. The primary reason for this decline was the disruption of natural gas supplies and the unprecedented increase in gas prices. However, fuel costs have started coming down from December 2022 onwards, mainly due to 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 good growth in the first nine months, with 12% growth in volumes and 22% growth in revenue. The company remains dedicated to its growth strategy, which includes expanding market share and increasing the number of dealers across India, especially in unrepresented areas. The company is confident that its strong foundation and commitment to excellence will drive its success in terms of both sales and profitability in the coming quarters,” said Mr. Ashok Kajaria.

Share of Kajaria Ceramics on Friday on NSE 1,098.65 each level, up 4.77% from the previous close 1,048.65.