Kajaria Ceramics accelerates its growth

India’s largest tile manufacturer plans to increase its sales at a rate of 15% for the next 3 years, confirming the growth trend of the last fiscal year.

Kajaria Ceramics, India’s largest tile manufacturer and one of the top ten groups in the world, reported exceptional results in the fiscal year to 31 March 2022. Total sales in volume grew 21% year-on-year to 92 million sqm, while revenues were up 33% to Rs. 37.05 billion (approximately US $490 million). The excellent performance continued in the first quarter of the new fiscal year (ended 30 June) with 80% year-on-year revenue growth to Rs. 10.08 billion (around $133 million), representing the seventh straight quarter delivering double-digit revenue growth. EBITDA margin for the quarter remained stable at 15% despite escalating inflation across all inputs and rising gas costs.

“We are highly satisfied with the performance we have delivered in FY22 and in Q1 FY23, which again demonstrated the power of sustainable business,” chairman Ashok Kajaria said. “Against a backdrop of geopolitical volatility and high commodity prices, the company has posted its highest ever sales volume of 91.67 million sqm and growth in revenues to more than Rs. 37 billion (around $490 million) in the financial year ended 2022. We continue to believe that the business momentum is going to be very strong on the back of increased traction in real estate sector, rapid urbanisation, consumer preference shifts and increased application of tiles in replacement and renovation projects.”

The group, which continues to maintain its focus on the domestic market (exports account for just 2% of volumes), plans to grow at a rate of 15% for the next 3 years, despite, according to Mr. Kajaria,

“the biggest challenge that the ceramic industry is facing at the moment is the increase in gas prices and the fact that the sector is unable to pass the higher costs on to end users”.

Read the complete interview published in Ceramic World Review 148.