News: SCL reported a soft performance on the margins front. The topline was up 69.5% YoY at Rs 559.1 crore, on a washout base. Tiles revenues were up 64.4% YoY at Rs 480 crore with volumes up 42.4% YoY and realisations up 15.5% YoY. QoQ volumes were down 11.5%. EBITDA was at Rs 44.9 crore, a decline of ~QoQ%, owing to higher input and gas prices leading to a decline of 20 bps in margins to 8%. PAT was at Rs 20.5 crore, up 19.7% QoQ given the lower depreciation, tax rate and higher other income.
View: Going forward, the management has guided for ~20% YoY revenues growth in FY23 and some improvement in margins in Q2. However, Gas price uncertainty continues and there remains a risk of further global gas prices spike amid winters (H2) and continued geopolitical tensions.
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