Tiles maker Kajaria Ceramics Ltd on Friday (October 20) reported a 54.5% year-on-year (YoY) jump in net profit at ₹108 crore for the second quarter that ended September 30, 2023, due to higher revenue and lower expenses.

In the corresponding quarter last year, Kajaria Ceramics posted a net profit of ₹70 crore, the company said in a regulatory filing.

In the quarter, revenue from operations stood at ₹1,121.6 crore during the period under review, up 4.1% against ₹1,077.8 crore in the corresponding period of the preceding fiscal.

At the operating level, EBITDA jumped 39 percent to ₹179.8 crore in the second quarter of this fiscal over ₹129.4 crore in the corresponding period in the previous fiscal.

EBITDA margin stood at 16% in the reporting quarter as compared to 12% in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation.

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Kajaria Ceramics chairman and managing director Ashok Kajaria said sustained weakness in domestic demand for tiles has impacted Q2 FY24 volumes, which grew by 6 percent. A reduction in power and fuel costs helped in improving profitability, he said.

"Looking forward, we remain steadfast in our commitment to our growth strategy. This strategy entails a continued emphasis on expanding our reach in smaller towns and introducing innovative products," Kajaria said.

The company's board has approved an interim dividend of Rs 6 per share of Re 1 each for the financial year 2023-24 which will be paid on or before November 18, 2023.

The board also approved an increase in the limits of investments by the company in Kajaria Plywood Pvt Ltd, a wholly-owned arm, from Rs 70 crore to Rs 80 crore in one or more tranches through subscription of equity shares or granting of unsecured loans subject to compliance of applicable laws.

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Shares of Kajaria Ceramics Ltd ended at ₹1,238.10, down by ₹21.95, or 1.74 percent on the BSE.

First Published:Oct 20, 2023 5:03 PM IST