Kajaria Ceramics (500233) Q4 23/24 earnings summary

Executive summary

• FY24 delivered modest growth despite tepid domestic tile demand and competitive pressure: sales volume rose 6% and revenue 4% YoY; EBITDA increased 18% and net profit 23%.

• Consolidated revenue reached ₹4,578.42 crore and profit attributable to owners was ₹422.11 crore; EBITDA was ₹700 crore, with a 15.28% margin.

• Strategic priorities include expanding value-added products, distribution in tier 2 and 3 cities, and manufacturing capacity across tiles, bathware, sanitaryware and adhesives.

Financial highlights

• Consolidated revenue from operations was ₹4,578.42 crore vs ₹4,381.93 crore in FY23; profit before tax was ₹575.62 crore vs ₹462.46 crore.

• Consolidated profit for the year was ₹432.16 crore; ₹422.11 crore was attributable to owners and ₹10.05 crore to non-controlling interests.

• Standalone revenue from operations was ₹4,103.02 crore vs ₹3,970.75 crore; standalone profit was ₹381.45 crore vs ₹344.39 crore.

• EBITDA was ₹700 crore vs ₹592 crore, with a 15.28% margin, up 177 bps YoY; net cash flow from operations was ₹602 crore.

• Consolidated operating cash flow was ₹601.65 crore vs ₹295.50 crore; cash used in investing was ₹297.60 crore and financing was ₹216.26 crore.

Outlook and guidance

• Planned investment of ₹225–250 crore annually over the next three years, targeting ₹6,500 crore topline by FY27.

• Greenfield Nepal tile facility was planned to start operations in September 2024; a Gailpur tile-adhesive plant, with ₹15 crore investment, was expected to start by Q3 FY25.

• Growth prospects are tied to real estate recovery, infrastructure spending and rising demand in tier 2 and 3 cities; new showrooms will continue to focus on semi-urban markets.

• Ceramic tile division planned 40 additional exclusive showrooms in FY25, reaching 200 by March 2025; new product launches will emphasize large formats and trend-led designs.