Kajaria Ceramics Q3FY25 results: Net profit falls 25% to Rs 77.74 crore

India's Kajaria Ceramics reported a third-quarter profit that missed analysts' estimates on Tuesday as its margins came under pressure due to soft demand for its tiles in a seasonally weak quarter.

The company's consolidated net profit dropped more than 25 per cent to Rs 77.74 crore (nearly $9 million) in the quarter, falling short of analysts' average estimate of Rs 106 crore, per data compiled by LSEG. 

 

The company's shares accelerated their marginal decline to as much as 2.7 per cent after the results were released.

 

Kajaria Ceramics' revenue from operations rose 1 per cent to Rs 1,164 crore, with the company also flagging lower realizations and persistently weak exports.

The main reason though was a subdued 7 per cent volume growth in a quarter which is seasonally slow for building activities as labor travel home for the many festivals in the period.

Analysts at HDFC Securities and Systematix expected volume growth of 8 per cent and 9 per cent, respectively, and had also flagged increasing competition from unorganized, private players.

Kajaria Ceramics' core profit margins narrowed to 12.8 per cent from 15.5 per cent a year ago.

The company, however, remains optimistic about demand in the near to medium term, Chairman Ashok Kajaria said in a statement.