Kajaria Ceramics (500233) Q4 24/25 earnings summary

Executive summary

• Q4 FY25 consolidated revenue was INR 1,227 crore, down 1% year-over-year, with tile volumes up 2% for the quarter and 6% for the year, reaching 115 million sq m.

• EBITDA margin for Q4 FY25 was 10%, impacted by bathware losses, UK operations, and provisions for doubtful debts in the plywood division.

• Profit after tax for Q4 FY25 dropped to ₹43 crore from ₹102 crore in Q4 FY24, mainly due to bad debts and provisions related to the plywood division.

• The plywood division was discontinued due to underperformance and lack of strategic fit.

• Audited results for FY25 were approved with unmodified opinions; final dividend of ₹4 per share recommended, total FY25 dividend at ₹9 per share.

Financial highlights

• Consolidated revenue for Q4 FY25 was ₹1,226.57 crore, a 1% year-over-year decrease; FY25 revenue was ₹4,683.24 crore, up 2% year-over-year.

• EBITDA for Q4 FY25 was ₹122.81 crore, down 29% year-over-year; EBITDA margin fell to 10.01% from 13.86%.

• PAT for Q4 FY25 was ₹42.52 crore, down 58% year-over-year; FY25 PAT was ₹294.35 crore, down 30%.

• Standalone revenue for FY25 was ₹4,286.67 crore, up from ₹4,171.58 crore year-over-year.

• Exceptional item: ₹112.38 crore impairment of investment and loan to KPPL fully recognized.

Outlook and guidance

• Management expects to outperform industry growth, focusing on cost optimization, sales and marketing, and brand strengthening.

• Exports are expected to recover, with industry exports projected to reach INR 20,000 crore, aided by lower freight rates and easing global conditions.

• No formal volume or margin guidance for FY26; management prefers to wait for more visibility.

• New adhesive manufacturing facility in Gailpur, Rajasthan, expected to be operational by early June 2025.

• Board recommended a final dividend of ₹4 per share, subject to shareholder approval.