Kajaria Ceramics (500233) Q2 24/25 earnings summary

Executive summary

• Tile volumes grew 8.5% year-over-year to 28.7 million sq m in Q2 FY25 despite subdued domestic demand and excessive rainfall impacting the industry.

• Consolidated revenue rose 5% year-over-year to INR 1,179 crore in Q2 FY25, but PAT declined 22% to INR 84 crore due to margin pressures and losses in new units.

• EBITDA margin for Q2 FY25 was 13.5%, impacted by losses in the new sanitaryware unit and additional overheads from the new Keronite tile unit.

• Management expects demand and margins to improve in H2 FY25, with volume growth guidance revised to 9-10% for the full year and EBITDA margin at the lower end of 15-17%.

• Unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2024 were approved, showing stable operational and financial performance.

Financial highlights

• Standalone revenue for H1 FY25 was ₹2,064.24 crore, up from ₹1,974.64 crore year-over-year; consolidated revenue was ₹2,292.96 crore, up from ₹2,185.85 crore.

• Standalone net profit for H1 FY25 was ₹179.47 crore, compared to ₹191.26 crore year-over-year; consolidated net profit was ₹174.09 crore, down from ₹215.48 crore.

• EBITDA for Q2 FY25 was ₹158.9 crore, down from ₹179.7 crore in Q2 FY24.

• EPS (Basic) for Q2 FY25 was ₹5.29, down from ₹6.78 in Q2 FY24; standalone EPS for H1 FY25 was ₹11.27; consolidated EPS was ₹10.93.

• Total comprehensive income for H1 FY25 (consolidated) was ₹178.05 crore.

Outlook and guidance

• Full-year volume growth guidance revised to 9-10%, with margin guidance at the lower end of 15-17%.

• H2 FY25 expected to be stronger due to improved market conditions and stabilization of new plants.

• Interim dividend of ₹5 per share declared, reflecting confidence in ongoing cash flows.

• No change in credit ratings, indicating stable financial outlook.

• Bathware segment expected to deliver 15%+ revenue growth for the full year as the new plant stabilizes.