Operating margin of ceramic tile makers expected to be 11% this fiscal: CRISIL

New Delhi: The operating margin for ceramic tile manufacturers in the country is expected to be about 11 percent in the current fiscal. The stable volume of exports of tiles will check corona pandemic led revenue decline and the balance sheets of the tile makers is expected to be resilient, according to ratings agency CRISIL.

The stable demand for export of ceramic tiles and lower gas prices this year are likely to keep operating profitability of the tile manufacturers in the current fiscal. Exports, which was around 35 percent of the sector’s turnover of Rs 38,900 crore last fiscal, are not expected to de-grow in the ongoing fiscal.

Exports to large economies like USA and the UK, that accounts for around 9 percent of the total ceramic tile exports from India, are likely to go up to 50 percent as the anti-dumping duty imposed by USA on the Chinese tiles this year will bear an effect.

The ratings agency carried out an analysis of as many as 87 CRISIL-rated tile manufacturers with an aggregate turnover of Rs 10,000 crore.