Tiles, Bathware - Demand Trends Healthy; Margin Headwinds In Near Term To Persist For Tiles: ICICI Securities

Tiles, Bathware - Demand Trends Healthy; Margin Headwinds In Near Term To Persist For Tile Companies: ICICI Securities

<div class="paragraphs"><p>Wall tiles on display. (Source:</p></div>
Wall tiles on display. (Source:

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

The tile and bathware companies under our coverage reported better-than-expected revenue/Ebitda performance in Q1 FY23 aided by continued strong demand from tier-II, tier-III and below cities.

Revenue growth for tile companies – Kajaria Ceramics Ltd. and Somany Ceramics Ltd. – was in the range of 64.3-76.5% (three-year compound annual growth rate of 11.9-12.1%) with volume growth of 42.4-52.9% (three-year CAGR of 5.9-6.3%) on a tepid base.

Bathware (i.e. sanitaryware and faucetware) revenues grew 91.4% YoY (three-year CAGR of 18.2%) for Cera Sanitaryware Ltd. whereas it surged 93% YoY (three-year CAGR of 20.1%) for Kajaria Ceramics, and 87.1% YoY (three-year CAGR of 13.2%) for Somany Ceramics on a tepid base.

Ebitda margin for tile companies were maintained QoQ despite higher fuel cost whereas for Cera Sanitaryware it declined 342 bps QoQ (up 633 bps YoY).

Click on the attachment to read the full report:

ICICI Securities Tiles Sector Update Aug.pdf


This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.