KAJARIACERNSEKajaria Ceramics Limited· Ceramics And SanitarywareMediumNeutral
Announced Tue, 6 May · 14:36 IST

Kajaria Ceramics Limited has informed the Exchange regarding a press release dated May 06, 2025, titled "INVERTOR RELEASE".

Mgmt Guided Margin ImprovementMgmt Guided Margin PressureInvestor Communications View source PDF

KAJARIACER · price

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Price reaction · full curve

Awaiting price reaction for this filing.

AI summary

Kajaria Ceramics reported a weak Q4 FY25 with consolidated revenue falling 1% to ₹1,226.57 crore and profit after tax dropping 58% to ₹42.52 crore. EBITDA margin shrank sharply from 13.86% to 10.01%, hit by soft demand, weak bathware segment, losses in UK operations, and a one-time provision in the plywood division. Full-year FY25 revenue grew 2% to ₹4,683.24 crore, but PAT declined 30% to ₹294.35 crore. The company announced the closure of its plywood division, scaled down UK operations, and dropped a planned large-format tile investment in Morbi, while a new tile adhesives plant in Gailpur is expected by early June 2025. Net debt remained negative at -₹424 crore, indicating a net cash position.

Likely market impact

Investors should brace for near-term earnings pressure as margins fell to a multi-year low and the company is exiting two underperforming businesses. However, the focus on cost restructuring, new adhesive segment, and a strong net cash position provide some cushion for the stock over the medium term.