BENGALURU (Reuters) – India’s Kajaria Ceramics reported a weaker-than-expected second-quarter profit on Friday, hurt by sluggish domestic demand for tiles.
Consolidated net profit was 1.08 billion rupees ($13.00 million) in the quarter ended Sept 30, compared with 698.6 million rupees a year earlier when it was hit by high gas prices and weak demand.
Profit missed analysts’ expectations of 1.22 billion rupees, according to LSEG data.
“Sustained weakness in domestic demand for tiles has impacted our second quarter FY24 volumes,” the company said in a statement.
Revenue from tiles grew a moderate 2.9% to 10.13 billion rupees.
Consolidated revenue from operations rose 4.1% to 11.22 billion rupees.
The company had in May projected revenue growth of 14-16% for this fiscal year.
Power and fuel expenses fell over 17% to 2.21 billion rupees as natural gas prices remained largely stable during the quarter.
Lower prices of natural gas aid the margins of ceramic product makers as they depend on fuel to power their tile kilns.
Shares of the company fell as much as 3.1% after the results.
($1 = 83.1055 Indian rupees)
(Reporting by Nishit Navin in Bengaluru; Editing by Dhanya Ann Thoppil)
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