Kajaria Ceramics at new high

Ever since Kajaria Ceramics declared its Q1FY15 numbers, the stock has been consistently new highs. Today is no different; it hit a new 52-week high at Rs.639.90 and currently remains 2% higher over Friday’s close.

The market is enthused with the numbers of Kajaria. The company, for current Q1, posted a consolidated net profit at Rs.38 crore, a 46% (YoY) rise on a 19% rise in net sales at Rs.503 crore. Operating costs, as a percentage of net sales remains more or less around the same levels of 87% but power and fuel charges have risen 32%. Tax outgo at Rs.20 crore is up 43%. The company’s consolidated debt, which in FY13 had peaked to Rs.320 crore, now currently stands at Rs.227 crore.

The company’s new 3.40 million square meter (MSM) glazed vitrified tile capacity at Sikandrabad commenced operations in March 2014 and is nearing optimum utilisation. Other capacity augmentation and diversification projects progress is on schedule.  Its Board has approved a 3 MSM ceramic wall tile capacity addition at its existing Bhiwadi (Rajasthan) facility.