- 07 May 2025
- ICICIdirect Research
FOR Q4FY25 KAJARIA REPORTED MUTED TOPLINE AT ₹1221.9 CRORE
News: For Q4FY25 Kajaria reported muted topline at ₹1221.9 crore, down 1.5% YoY. Tiles sales volumes were up ~2% YoY at 30.11 MSM. Tiles revenues were down 0.3% YoY at ₹1088.4 crore. EBITDA (excluding plywood) was reported at ₹138.4 crore, down 19.6% YoY along with EBITDA margins which were down 254 bps YoY to 11.3%. Margins declined owing to muted tiles and bathware segment and losses taken in the UK operation. Given the muted topline, lower margins and one-offs ( losses and provision of doubtful debts created owing to closure of plywood division of ₹ 30.8 crore), the PAT declined by ~58.6% YoY to ₹42.5 crore.
View: The company continued to witness softness in domestic demand amid Morbi’s decline in exports (20% fall in value of exports in FY25). Given the challenging industry scenario, the company has refrained from giving margin or topline guidance. However, the management remained optimistic on demand outlook for the tile industry as it expects low freight rates to aid exports and improving real estate cycle to increase company’s domestic volume share. The company expects to become more competitive and outperform industry growth, resulting in improved margins going forward.
Impact: Negative