Kajaria Ceramics, a prominent Indian tile manufacturer, is navigating a challenging market by making strategic business adjustments.
Financial Performance: Kajaria Ceramics saw a significant decline in consolidated net profit for Q4 FY25 and the full FY25. This was mainly due to weak demand, losses from its plywood business, and subdued performance in the bathware segment.
Strategic Changes & Optimization: To streamline operations, Kajaria has decided to exit its loss-making plywood business by June 30, 2025, impairing related investments. They also discontinued a planned tile facility and dismantled an old manufacturing line, aiming to improve overall efficiency.
New Ventures: Despite these exits, Kajaria is investing in new areas. They are setting up a tiles adhesives plant in Rajasthan, expected to be operational by June 2025, and have established a new subsidiary for this. The company continues to expand its retail network by opening new showrooms.
Market Outlook: Kajaria acknowledged soft demand in both domestic and export markets during FY25. However, they managed to gain market share with a 6% volume growth. The management anticipates a demand recovery in the medium term, driven by an improving real estate sector and increased exports from Morbi.
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