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ANALYSIS
OF FINANCIAL
PERFORMANCE
STATEMENT OF PROFIT AND LOSS
The successful execution of the volume-value strategy
resulted in a 6% growth in net sales: from Rs.
2408.82 crore in 2015-16 to Rs. 2545.62 crore in
2016-17.
The Company continued its focus on optimising
operation cost on a holistic basis. Better negotiation
with suppliers ensured that raw material cost
remained largely at the previous year levels. In
addition, process improvements and automations
initiatives at all its manufacturing facilities
contributed to reducing costs.
Reduction in gas prices resulted in optimising power
and fuel cost – an important cost component in tile
manufacturing – despite an increase in production
volumes. Employee cost increased by 14% over the
previous year as the Company on-boarded members
to manage its expanded operations.
In addition, the Company shifted part of its traded
“It was another year that
challenged our ability to grow
business profitably. And despite the
subdued environment prevailing
in the real estate sector, Kajaria
upped its performance – business
growth was accompanied by
an improvement in profitability
margins. This was primarily owing
to our success in increasing the
proportion of large-format tiles
in the sales mix and optimising
operational costs.”
Mr. Ashok Kajaria
,
Chairman & Mg. Director
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