Cera Sanitaryware (532443) Q3 24/25 earnings summary

Executive summary

• Q3FY25 saw modest revenue growth of 2.9% YoY to ₹449 crores amid persistent demand headwinds, with EBITDA up 5.2% YoY to ₹71 crores.

• Board approved unaudited standalone and consolidated financial results for the quarter and nine months ended 31st December 2024.

• B2B segment gained traction, contributing 35% of Q3 revenues, while retail demand remained subdued.

• Luxury segment expansion continued, with new SKUs and exclusive store rollouts for Senator and Luxe brands.

• Management expects to close FY25 with lower single-digit growth, revising earlier higher growth guidance.

Financial highlights

• Revenue from operations in Q3FY25 was ₹449 crores vs ₹437 crores in Q3FY24 (2.9% YoY growth).

• Standalone total income for Q3 FY25: ₹46,136 lakhs; consolidated: ₹46,404.77 lakhs.

• Standalone net profit for Q3 FY25: ₹4,585.91 lakhs; consolidated: ₹4,636.61 lakhs.

• Basic and diluted EPS (standalone) for Q3 FY25: ₹35.56; consolidated: ₹35.52.

• Cash and cash equivalents at ₹662 crores, down 13.8% YoY due to buyback in Q2.

Outlook and guidance

• Management expects FY25 to end with lower single-digit sales growth, not higher single digits as previously guided.

• Margins are expected to recover to 16%-17% in the next 1-2 quarters as demand and discounting normalize.

• Long-term revenue target of ₹2,900 crores by March 2027 remains, contingent on market recovery.

• Board and audit committee reviewed and approved results; no forward-looking guidance provided.