Demand recovery, buoyant exports to aid strong growth for tile makers

Improving product mix to boost realisations; while sales growth was impacted in the June quarter, there has been a recovery led by non-metro markets

Strong demand recovery, higher exports and market share gains are positive triggers for the domestic tile companies. While sales growth was impacted in the June quarter, there has been a recovery led by non-metro markets; most analysts expect the sector to post double digit growth in FY22.

Says Binod Modi, head of strategy at Reliance Securities, “Pickup in housing construction activities with improved availability of labour aided demand from June onwards. Trend is expected to see further improvement post monsoon with a recovery in the rural economy.”

A key trigger for the domestic tile sector has been the steady growth