New Delhi: Kajaria Ceramics' net profit decreased 39.09% to Rs 74.32 crore on a consolidated basis in the third quarter of FY23 compared to Rs 122.02 crore in the third quarter of FY22.

The revenue from operations for the quarter that ended on December 31, 2022, was Rs 1,091.13 crore, an increase of 2.14% from the Rs 1,068.23 crore recorded for the same time the previous year.

Profit before tax decreased by 37.75 percent to Rs 99.71 crore in the third quarter of FY23 from Rs 160.18 crore in the third quarter of FY22.

From Rs 183.84 crore in Q3 FY22 to Rs 133.07 crore in Q3 FY23, EBITDA decreased by 28%. EBITDA Margin decreased to 12.20% from 17.21% reported in the same quarter the year before. In Q3 of FY23, total costs increased 9.11% year over year to Rs 998.90 crore. Employee benefit costs were Rs 116.58 crore (up 9.36% YoY), while the cost of the materials utilised was Rs 264.22 crore (up 17.5% YoY).

The chairman of the company declared, "This quarter has been difficult in terms of performance." The extended monsoon season and the holiday season in October 2022 had an influence on the total volumes. But between November and December, there was some improvement in demand, suggesting a promising future course.

When compared to the same quarter the year before, the EBITDA margin for Q3 FY23 was 12.20%, a 500 basis point decrease. A disturbance in the supply of natural gas and an extraordinary rise in gas prices were the main contributors to this drop. However, beginning December 2022, fuel costs have begun to decline, mostly as a result of rising usage of alternative fuels and a little decline in gas prices. By March 2023, it is anticipated that these modifications will have had their full impact.

Overall, the business has grown respectably in the first nine months, with revenue up 22% and volume rising 12%. The business is committed to pursuing its growth plan, which calls for increasing market share and the number of dealers throughout India, particularly in underserved areas. In the forthcoming quarters, the firm is sure that its solid foundation and dedication to quality will continue to be the key factors in its success in terms of sales and profitability.

A six rupee interim dividend per share has been agreed by the company's board of directors for the fiscal year 2022–2023.

The board of Kajaria Ceramics has also given the go-ahead to buy up to 11,40,968 more equity shares worth Rs 10 each from a subsidiary business called Kajaria Vitrified (KVPL) for a total cash payment of Rs 1,80,04,475. Currently, the firm owns 87.37% of the equity shares in KVPL, and when the proposed purchase of those shares is completed, that ownership percentage would rise to 95%.

Furthermore, the company's board of directors has granted the go-ahead to gradually sell its whole ownership (1,22,40,000 equity shares worth Rs 10 each) in subsidiary Vennar Ceramics (Vennar) for a sum of Rs 18.25 crore. Five equal payments will be sent to the company, ranging from 1 April 2023 to 31 March 2024.

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