homeearnings NewsKajaria Ceramics eyes 13 15% volume growth for the rest of FY24, trims bathware guidance
Kajaria Ceramics eyes 13-15% volume growth for the rest of FY24, trims bathware guidance
Kajaria Ceramics, a prominent figure in India's ceramic tile industry, is gearing up for a robust second half of the year. The company has high expectations, with a substantial 13-15% surge in volume anticipated during this period, following an earlier adjustment in guidance from 13-15% to 9-10% for the entire year.
Kajaria Ceramics expects a 13-15% rise in volumes in the second half of the financial year 2024, leading to an average growth of 9-10% for the full year, said Chairman and Managing Director Ashok Kajaria.
Volume growth for the first two quarters was 6-7%. However, the September volume growth of 10.5% indicates that things are looking up.
Kajaria expects margin growth also to improve to 12 to 15% in the second half from 6 to 7% in the first half.
The tiles maker on Friday (October 20) reported a 54.5% year-on-year (YoY) jump in net profit to ₹108 crore for the second quarter, due to higher revenue and lower expenses. Revenue for the quarter stood at ₹1,121.6 crore, up 4.1% from ₹1,077.8 crore last year.
The bathware business is likely to miss the guidance, Kajaria said. While he expects sales to exceed ₹400 crore, it will still be lower than the company's earlier guidance of ₹450 crore. Bathware revenues for the financial year 2023 were at ₹316 crore.
Among other segments, revenue from the plywood business is likely to improve to ₹100 crore for the current year from ₹77 crore last year.
Read Here | Astral ups FY24 volume guidance to 20% from 15%
In line with its growth ambitions, Kajaria is targeting ₹130-140 crore in marketing spend for FY24 versus ₹108 crore spent in FY23.
Shares of Kajaria Ceramics were flat in trade at ₹1,218. The stock has declined more than 11% over the past month.
(Edited by : Shweta Mungre)
First Published: Oct 25, 2023 2:51 PM IST
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