Kajaria Ceramics is also looking at margins of about 16 percent in Q4, said Ashok Kajaria.
Kajaria Ceramics last week reported a 24.06 percent increase in consolidated net profit at Rs 65.89 crore for the third quarter ended December 31.
On volume outlook, the company's CMD Ashok Kajaria said, "At the end of Q2, we said in the second half we will do 14-15 percent volume growth and we are going to maintain that. Q3 we did about 16 percent and I think we should be above 14-15 percent in Q4. Talking about next year, we are also looking at the scenario where Kajaria should do about 14-15 percent volume growth."
On the margins front, Kajaria said, "For Q4, we are looking at about 16 percent – what we have said earlier at the end of Q2 that six months will be close to 16 percent which we are hoping to maintain because Q3 has been 15.9 percent. I think looking at Q4, we should do more than 16 percent but as far as the new year 2019-2020 is concerned."
He, however, noted margins will depend on the movement of Brent crude or gas prices and therefore, sharing exact margin estimates may not be possible.
The fuel mix for Kajaria is approximately 75 percent gas and 25 percent coal. Gas prices have marginally come down but not so much because they take a three-month average for Brent, he said adding, "From March, it should start coming down. Definitely, it will have an impact on our margins going forward."Source: CNBC-TV18