Kajaria Ceramics (500233) Q3 24/25 earnings summary

Executive summary

• Tile volumes grew 7% year-over-year to 28.9 million sq. meters in Q3 FY2025, despite weak domestic and export markets.

• Consolidated revenue rose 1% year-over-year to ₹1,163.71 crore in Q3 FY2025.

• PAT declined 25% year-over-year to ₹77.74 crore, impacted by lower realizations and losses in the bathroom division.

• Board approved several strategic investments and changes in subsidiary and joint venture structures to support growth and diversification.

• Nepal project operated at 70% utilization; sales not yet consolidated.

Financial highlights

• EBITDA margin was 12.78% in Q3 FY2025, affected by lower realization and bathroom division losses.

• Tile segment revenue grew 3% year-over-year to INR 1,041 crores.

• PAT for 9M FY25 fell 21% YoY to ₹251.83 crore.

• EPS for Q3 FY25 was ₹4.88 (consolidated), down 18% YoY.

• Working capital days increased marginally to 59 days as of December 31, 2024.

Outlook and guidance

• Management expects bathware to grow close to 10% for the year, below earlier 15% guidance.

• No revision to three-year guidance yet; focus remains on recovery and margin improvement as demand revives.

• EBITDA margin expected to improve as new sanitaryware plant stabilizes and operating leverage increases.

• Volume growth for FY2025 expected at 8-9%.

• Management remains optimistic about near- to medium-term demand for tiles.