Kajaria Ceramics Q2 results: Net profit declines 22% to Rs 84.27 crore

Indian tile maker Kajaria Ceramics reported a bigger-than-expected fall in its second-quarter profit on Tuesday amid sluggish domestic demand as monsoon rains slowed construction activity.

Consolidated net profit fell 22% to Rs 84.27 crore ($10 million) in the quarter ended Sept. 30 from Rs 108 crore a year earlier.

Analysts, on average, had expected a profit of Rs 107 crore, according to estimates compiled by LSEG.

Revenue from operations increased about 5%, marking the eight straight quarter of single-digit growth, according to LSEG data.

KEY CONTEXT

Tiles demand has been sluggish in the world's most populous country, with strong construction activity in western, eastern, and central India countering weakness in northern and southern parts.

Construction, which was hit by an election-linked slowdown in the first quarter, did not pick up as above-average monsoon rains kept infrastructure activity subdued.