The Indian ceramic group has announced new investments of more than $30 million, to bring its total capacity to exceed 80 million sqm/year by March 2022
Kajaria Ceramics, India’s top tile manufacturer and one of the largest global groups in the sector, reported better-than-expected results in the fiscal year to 31 March 2021.
After the announced drop from March to July 2020, production and sales resumed growth in the third and above all the fourth quarters with gross sales up 46% and EBITDA up 104%. This enabled the group to close out the year with substantially stable revenues compared to 2020 and double-digit growth in earnings.
“Increased volumes in the second half of last fiscal year, coupled with our cost optimisation strategies, resulted in a satisfactory performance – said chairman Ashok Kajaria. “Revenue from operations stood at Rs 27.81 billion (US $379.5 million) in FY21, against Rs 28.08 billion in FY20, a marginal decline of 1%. Net profit grew by 21% over the previous year. We surpassed the budgets set at the beginning of the year with relative ease.”
The outlook for the current year is good, with the Indian group set to complete new investments of more than $30 million, bringing total production capacity of its plants at Gailpur (Rajasthan), Morbi (Gujarat) and Srikalahasti (Andhra Pradesh) to 82.8 million sqm/year by March 2022.
“Over the coming years, we expect Tier II and III towns to emerge as the new economic drivers owing to their demonstrated resilience during the health emergency – said Mr. Kajaria. “This transition will attract considerable investments in these towns, positioning them as new construction hubs. We have a reasonably confident outlook. GDP growth in excess of 9% is forecast this year, a positive resurgence that is expected to provide interesting opportunities in all sectors”.
Rear the complete interview to Mr. Ashok Kajaria published in Ceramic World Review no. 143