Kajaria Ceramics (500233) Q2 24/25 earnings summary

Executive summary

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

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

• EBITDA margin softened to 13.5% due to losses in the new Bathware and Keronite units.

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

• An interim dividend of ₹5 per share was declared for FY2024-25, with a record date of 4 November 2024.

Financial highlights

• Q2 FY25 consolidated revenue: INR 1,179 crores, up 5% year-over-year.

• PAT for Q2 FY25 was ₹84.27 crore, a 22% decrease year-over-year.

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

• 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.

Outlook and guidance

• 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%.

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

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

• Bathware revenue growth targeted at 15%+ for the full year as the new plant stabilizes.

• Nepal plant to ramp up production and sales over the next 3-6 months.