Kajaria Ceramics Ltd on Friday posted a 60.86 per cent rise in consolidated net profit at Rs 110.82 crore for the second quarter ended September 30, because of the higher revenue and lower expenses.

In the same quarter last fiscal, the company had posted a consolidated net profit of Rs 68.89 crore, Kajaria Ceramics said in a regulatory filing.

Consolidated revenue from operations increased to Rs 1,121.62 crore, as against Rs 1,077.76 crore in the year-ago quarter.

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The company said that total expenses were marginally lower at Rs 982.24 crore, as compared to Rs 985.16 crore in the corresponding period last fiscal.

Kajaria Ceramics Chairman & Managing Director Ashok Kajaria said that sustained weakness in domestic demand for tiles has impacted Q2 FY24 volumes, which grew by 6 per cent.

A declined in power and fuel costs helped in improving profitability, he added.

“Looking forward, we remain steadfast in our commitment to our growth strategy. This strategy entails a continued emphasis on expanding our reach in smaller towns and introducing innovative products,” Kajaria said.

The company’s board has approved an interim dividend of Rs 6 per share of Re 1 each for the financial year 2023-24 which will be paid on or before November 18, 2023.

In addition, the board also approved an increase in the limits of investments by the company in Kajaria Plywood Pvt Ltd, a wholly-owned arm, from Rs 70 crore to Rs 80 crore in one or more tranches through subscription of equity shares or granting of unsecured loans subject to compliance of applicable laws. 

The company shares closed 1.74 per cent down at Rs 1,238.10 on the BSE.