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 losses in the Bathware division, UK operations, and provisions for doubtful debts in the discontinued plywood division.

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

• The plywood division, set up in 2017, is being closed due to underperformance and lack of expected market shift post-GST.

• Nepal plant, commissioned in September 2024, operated at 50% utilization in Q4 FY25 and is marginally profitable.

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%.

• Profit before tax for Q4 FY25 was ₹85.12 crore, a 39% year-over-year decrease; FY25 PBT was ₹449.71 crore, down 22%.

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

• EPS for Q4 FY25 was ₹2.67, down from ₹6.43 in Q4 FY24.

Outlook and guidance

• Management refrained from providing FY26 volume or margin guidance, citing past misses and market uncertainty.

• Exports are expected to rebound, potentially reaching INR 20,000 crore in FY26 as global freight rates fall and anti-dumping duties are lifted in the US.

• Domestic demand is expected to improve across all tiers, with a focus on strengthening exclusive dealer networks.

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