Kajaria Ceramics optimistic after GST roll out

At a time when the brokerage is estimating lower sales and profit in the Q1 period (ended in June) for Kajaria Ceramics Limited, the company is bullish on the growth of tiles industry by six to nine per cent in the year, riding on conducive policy environment.
"GST is positive for the industry. With affordable housing and focus on smart city projects, the industry is expected to grow at six to nine per cent this year against three to five per cent last year," Kajaria Ceramics chairman and managing director Ashok Kajaria said today.
In its first quarter (April-June) FY18', ICICI brokerage expects Kajaria Ceramics to report year-on-year net profit down by 12 per cent and sales by 14 per cent.

The unorganised sector that controlled 50 per cent of the Rs 26,500 crore tiles and ceramics industry is under the tax net in the GST regime, offering a major boost to organised players, Kajaria said.
"The incidence of tax prior to GST was between 28 and 31 per cent depending on states, but now it is 28 per cent across country," Kajaria said.
Kajaria Ceramics enjoys 10.5 per cent market share in the industry and is expecting to increase the same to 13 per cent over the next five years, company officials said.
A 11,000 sqft showroom was opened in city to showcase all Kajaria products under a single roof. Eastern India contributes about 10-15 per cent for Kajaria Ceramics.