India's Kajaria Ceramics misses profit estimates as tepid demand drags margins

Kajaria Ceramics

04/02/2025 09:53

Feb 4 (Reuters) - India's Kajaria Ceramics  KAJR.NS 
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%
to 777.4 million rupees (nearly $9 million) in the quarter,
falling short of analysts' average estimate of 1.06 billion
rupees, per data compiled by LSEG.
    The company's shares accelerated their marginal decline to
as much as 2.7% after the results were released.
    Kajaria Ceramics' revenue from operations rose 1% to 11.64
billion rupees, with the company also flagging lower
realizations and persistently weak exports.
    The main reason though was a subdued 7% 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% and 9%, respectively, and had also flagged
increasing competition from unorganized, private players.
    Kajaria Ceramics' core profit margins narrowed to 12.8% from
15.5% a year ago.
    The company, however, remains optimistic about demand in the
near to medium term, Chairman Ashok Kajaria said in a statement.
    
  
($1 = 87.0490 Indian rupees)

 (Reporting by Hritam Mukherjee and Manvi Pant; Editing by Savio
D'Souza)
 ((Hritam.Mukherjee@thomsonreuters.com; X: @MukherjeeHritam;))