Kajaria Ceramics Ltd (BOM:500233) Q2 2025 Earnings Call Highlights: Navigating Growth Amidst ...

• Tile Volumes: 8.5% year-to-year growth to 28.70 million square meters.

• Consolidated Revenue: INR 1.79 crore, a 5% increase year-over-year.

• EBITDA Margins: 13.5% for the quarter.

• Tile Segment Revenue: 5% growth to INR 1,053 crore.

• Bathware Segment Revenue: 6% growth to INR 90 crore.

• Plywood Revenue: Decreased by 26% to INR 17.5 crore.

• Adhesives Revenue: Increased by 40% to INR 18 crore.

• PAT (Profit After Tax): Decreased by 22% to INR 84 crore.

• Working Capital Days: Remained flat at 59 days as of September 30, 2024.

• Warning! GuruFocus has detected 3 Warning Sign with BOM:500233.

Release Date: October 22, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

• Kajaria Ceramics Ltd (BOM:500233) reported an 8.5% year-on-year growth in tile volumes for Q2 FY25, outperforming the industry average of 2-3%.

• The company's consolidated revenue increased by 5% compared to the same period last year, reaching INR1.79 crore.

• The Adhesives segment showed significant growth, with revenue increasing by 40% to INR18 crore in Q2 FY25.

• The company expects the demand outlook to improve in the second half of the fiscal year, with better performance anticipated compared to the first half.

• Kajaria Ceramics Ltd (BOM:500233) has a strong dealer network with 1,850 dealers across India, providing a positive feedback loop for future demand.

• EBITDA margins were soft at 13.5% for the quarter, impacted by losses in the Bathware division and additional overheads from the Keronite unit.

• The plywood segment experienced a significant decline, with revenue decreasing by 26% in Q2 FY25 compared to the previous year.

• India's tile exports fell by 15% in the first five months of the current year, largely due to increased ocean freight rates and container shortages.

• The company's PAT for the quarter decreased by 22% to INR84 crore compared to INR108 crore in the same period last year.

• Working capital days remained flat at 59 days, with efforts to reduce it to 50 days by the end of March, indicating potential inefficiencies in inventory and receivables management.

Q: What is the outlook on gas pricing and its impact on the tile business in India? A: Ashok Kajaria, Executive Chairman, stated that gas prices have not changed significantly in the first six months of the financial year. The company is using biofuel to offset some costs, and there is no major change expected in the short term. Long-term global LNG price corrections are uncertain and not within the company's control.