Kajaria Ceramics Ltd, a leading tile manufacturer, announced a significant increase in its consolidated net profit for the second quarter ended September 30. The company reported a rise of 60.86% with a net profit of Rs 110.82 crore, compared to Rs 68.89 crore in the same quarter last year.
This growth can be attributed to higher revenue and lower expenses, as stated in the regulatory filing Kajaria Ceramics. Consolidated revenue from operations also saw a positive trend, reaching Rs 1,121.62 crore, compared to Rs 1,077.76 crore in the previous year’s quarter.
Kajaria Ceramics Chairman and Managing Director, Ashok Kajaria, acknowledged that the weak domestic demand for tiles has affected the company’s volume growth in Q2 FY24, with a modest 6% increase. However, he highlighted the reduction in power and fuel costs as a contributing factor that improved profitability.
Looking ahead, Mr. Kajaria expressed the company’s commitment to its growth strategy, which focuses on expanding its market presence in smaller towns and introducing innovative products.
In line with its strong financial performance, the board of directors also approved an interim dividend of Rs 6 per share for the financial year 2023-24. This dividend will be paid on or before November 18, 2023. Additionally, the board approved an increase in the investment limits of Kajaria Plywood Pvt Ltd, a wholly-owned subsidiary, from Rs 70 crore to Rs 80 crore for future expansion activities.
Kajaria Ceramics continues to thrive in the industry, proving its resilience and commitment to delivering value to its stakeholders.