Shares of Asian Granito India Ltd were down nearly 4% around midday after weak fourth-quarter data disappointed investors.

Asian Granito India’s consolidated operating income stood at Rs 455.5 crore, down 5% from a year earlier, the company said on May 24.

Margins fell sharply due to a sharp increase in natural gas prices sequentially. The company said in its filing that the price rose 13% year-on-year due to gas without a managed pricing mechanism, which led to spot purchases from Sabarmati Gas. Product changes at the materials subsidiary led to lower volumes and lower margins on traded goods.

“Export revenue for Q4FY23 was Rs 54.2 crore. Overall exports of the ceramics industry have grown during the quarter and year and we expect further growth in exports in the coming quarters,” the company said in the filing.

Demand for tiles in the domestic market is likely to remain mixed due to inflationary pressures from retail and institutional clients, it said. However, the company said it expected continued government spending on low-cost housing and construction, which would drive demand for ceramic products.

“Export markets continue to remain subdued, but companies continue to forge new avenues, leading to good growth in the next quarter. Margins will continue in the quarters ahead due to inflationary pressure on input costs and limited ability to pass cost pressure on to end-customers at current levels.”

Granito Asia was trading 3.8% lower at Rs 47.85 on the NSE at 11:40 am.