Kajaria Ceramics Q4 results: Net profit fell 59% due to weak demand, loss of plywood
Kajaria Ceramics Q4 results: Kajaria Ceramics Limited reported on Tuesday that its consolidated net profit fell sharply by 59% in the January-March quarter due to shorter domestic demand and losses from its shutdown plywood business.
India's largest tile manufacturer has net profit of Rs 43 crore in the fourth quarter, down from Rs 104 crore in the same period last fiscal year, according to its stock exchange filing.
The company attributes the decline to Rs 3,079 crore, the now discontinued plywood business.
While the overall revenue from operations is slightly above 1.1% (YOY), reaching Rs 1,222.22 crore, the company said domestic ceramic tile demand remains in a difficult position due to the slowdown in the real estate industry.
Earnings before interest, taxes, depreciation and amortization (EBITDA) also fell 20% to Rs 1384 crore, with operating margins shrinking to 11.3% compared to 14.3% a year ago.
Despite weak demand, Kajaria's tile volume increased by 2% in the quarter, 6% higher than the current fiscal year, with annual sales reaching 114.7 million square meters.
The company's chairman noted that exports and domestic markets were soft during the quarter.
Due to the high costs, the company has withdrawn from its joint venture in the UK and will not be planned for Rs 30 billion tile facilities under Kajaria Ultima Private Limited.
However, it is moving forward in Rajasthan's Rs 150 crore adhesive factory, which is expected to begin operations in June 2025.
Kajaria has also launched a new subsidiary, Kajaria Gearsive Private Limited, which now opens nine manufacturing units in India and Nepal with a total production capacity of 900.5 million square meters.
Kajaria Ceramics shares ended the trade on Tuesday at Rs 798.20 on the Mumbai Stock Exchange (BSE), down 2.9 per cent or Rs 23.85 after earnings announcement.
