Varmora Granito Shares Climb Nearly 6% as H1 Profit Jumps 498% to Rs 53.7 Crore

Revenue for the September quarter stood at Rs. 399 crore, up 9% year-on-year and 27% sequentially. Profit after tax for the quarter was Rs. 44 crore, up 206% from Rs. 14.4 crore in the corresponding quarter of the previous financial year. PAT for the June quarter stood at Rs. 9.7 crore.

The first quarter was affected by disruptions to tile manufacturing in Morbi following a sharp rise in natural gas prices amid the West Asia conflict. Several plants remained shut from early March until mid-April, affecting production and sales volumes. The company’s revenue for the June quarter declined 2.9% year-on-year to Rs. 315.3 crore.

Commenting on the results, Bhavesh Varmora, Chairman and Managing Director of Varmora Granito Limited, said, “This is a milestone moment for Varmora as we report our first results as a listed company. Despite a challenging first quarter, we recorded a 498% increase in profit for the first half of the financial year. The September quarter saw a strong recovery, with revenue growing 27% over the previous quarter. Price increases during the period have recovered the higher gas costs, while our focus remains on cash generation, product innovation and expanding our retail network.”

Premium glazed vitrified tiles (GVT) and technical products, including Integrated Stone Technology, accounted for 87% of revenue in the first half, up from 83% a year earlier. The category recorded 9% growth on an annual basis. The company also launched 508 new designs during the period and added four exclusive brand outlets, taking its network to 309, alongside more than 2,000 multi-brand outlets.

Varmora’s domestic revenue for the first half of the year rose 9% to Rs. 589.7 crore, accounting for 83% of the total. Export revenue declined 18% to Rs. 124.5 crore, affected by the disruption in Morbi and higher freight costs to Gulf markets.

EBITDA for the first half stood at Rs. 101.3 crore, with a margin of 14%, compared with 12% in the corresponding period last year.

During the period, Varmora completed its initial public offering of Rs. 708 crore, including a fresh issue of Rs. 320 crore. Proceeds from the fresh issue were used to repay debt. The company also commenced production at its new manufacturing facility in Tezpur, Assam, and plans to upgrade its Solaris unit to manufacture GVT. It divested its stake in Simola Tiles LLP as part of its focus on its core product portfolio.