Kajaria Ceramics gearing on expansion, posts 19.8 per cent net profit in June quarter

Kajaria Ceramics (KCL) recently posted its June quarter result. The company's consolidated revenue boosted by 9.02 per cent to reach Rs 548.72 crore in Q1FY16 as compared to same period in the previous fiscal year. Its total expenditure increased by 7.73 per cent from Rs 423 crore in Q1FY15 to Rs 456 crore in Q1FY16. KCL's total expenditure increased predominantly due to a 47.48 per cent increment in other expenses, a 21.09 per cent increment in employee cost and 18.4 per cent increment in raw material prices during June 2015 quarter.

KCL's EBITDA received a  15.83 per cent boost to reach Rs 92.84 crore in Q1FY16 as compared to same period in previous financial year. The company's EBITDA margin expanded by 100 basis points to 16.92 per cent in Q1FY16 on yearly basis. Its EBIT too rose by 13.17 per cent to Rs 76.37 crore in Q1FY16 compared to same period financial year. But, its depreciation expense increased by 29.99 per cent to Rs 16.47 crore because the company has revised useful lives of some items of plant and machinery from 18 years to 10 and 7 years respectively during the quarter. KCL posted a net profit of Rs 46.22 in Q1FY16 with a growth of 19.8 per cent on yearly basis. The net profit margin expanded by 75 basis points to 8.42 per cent in Q1FY16 compared to same period in previous fiscal year.

KCL decided to put up 5 million square metres (MSM) Greenfield facility of polished vitrified tiles at a new location at Malutana in Rajasthan. The Company Board approved to increase the capacity to 6.50 MSM per annum. This project is expected to commence operations in Q4FY16. KCL completed its manufacturing facility at existing location in Rajasthan for production of 3 MSM Capacity of ceramic floor tiles. The full production is expected to commence by September 2015.

KCL board approved to acquire 51 per cent stake in Flora Ceramics, Rajahmundry in Andhra Pradesh by subscribing to the equity shares of the Company. Floera Ceramics has Plans to put up a manufacturing facility of polished vitrified tiles with a capacity of 5.70 MSM per annum in Andhra Pradesh.

KCL is one of the largest ceramic floor and wall tile manufacturers in India. The company has an in-house state of the art research and development facility for developing new designs and creating cost effective products. The company too received various certifications such as ISO 9001 for quality management, ISO 14001 for environment management, OHSAS 18001 for safety and health management and SA–8000 for commitment to society. KCL has an office network spread across more than 23 cities in the country with its headquarter situated in New Delhi. The company is operating its domestic business through its network of 900 pan-India dealers.