Kajaria Ceramics, a prominent producer of ceramic and vitrified tiles, has announced its withdrawal from the unprofitable plywood sector. The company’s board approved the cessation of operations for Kajaria Plywood, its wholly owned subsidiary, citing a lack of strategic alignment and ongoing financial losses.
The firm has fully written off its investment and loan to Kajaria Plywood, totaling Rs 112.38 crore, and anticipates concluding the plywood operations by June 30, 2025. On the same day, Kajaria Ceramics reported its financial results for the March quarter, revealing a 58.6 percent decrease in consolidated profit to Rs 43.18 crore, attributed to settlements with joint venture partners and vendors related to the plywood business, down from Rs 104.27 crore in the same period last year.
Chairman Ashok Kajaria noted that the profit after tax for Q4FY25 was Rs 43 crore, compared to Rs 102 crore in Q4FY24, primarily due to additional provisions in the plywood division for settlements. Revenue from operations increased by 1.13 percent to Rs 1,221.85 crore in the March quarter of FY25, despite weak demand. The company experienced very soft demand in both domestic and export markets during Q4 FY25, managing only a 2 percent growth in tile volume.
Total expenses rose by 4.65 percent to Rs 1,132.91 crore in the March quarter, with an EBITDA margin of 10 percent. The decline in margin was attributed to another lackluster quarter for the bathware division, losses in UK operations, and provisions for doubtful debts in the plywood division, which is being closed.
For the financial year ending March 31, 2025, Kajaria Ceramics reported a 30.57 percent drop in profit to Rs 300.02 crore, while total revenue increased by 3.6 percent to Rs 4,635.07 crore. On Tuesday, shares of Kajaria Ceramics Ltd closed at Rs 799.75 on the BSE, reflecting a 2.87 percent decline from the previous close.
