Kajaria Ceramics Q3 Results Review - Inline Performance; Volume Growth Stood At 6% YoY: Motilal Oswal

Motilal Oswal Report

Kajaria Ceramics Ltd.'s reported consolidated revenue/Ebitda growth of 6%/ 34% YoY to Rs 11.5 billion/Rs 1.8 billion (in line) in Q3 FY24. Operating profit margin stood at 15.5% (versus estimate 15.7%). Profit after tax came in at Rs 1.0 billion (versus estimate Rs 1.1 billion).

The management remains confident of achieving five - 6% higher growth than the industry average. Demand should increase as spending have been higher in the infrastructure and real estate sectors for the last two-three years.

In Q4, volume growth should be ~7% for Kajaria Ceramics. Morbi manufacturers have not hiked prices despite a 17% increase in Gujarat gas prices since August 2023.

Tile prices have come down by 2-3% in the last few months. Average gas price was Rs 39/ standard cubic meter in Q3 FY24.

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