January 31, 2024

BSE Limited The National Stock Exchange of India Limited

P.J. Towers Exchange Plaza
Dalal Street Bandra Kurla Complex
Mumbai - 400 001 Bandra (E)
Mumbai - 400 051
Dear Sir,

Sub.: Investors’ Release

Pursuant to the provisions of the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015, please find enclosed an Investors’ Release dated January 31, 2024,
specifying the summary of financial performance and other developments for the
quarter/nine months ended December 31, 2023.

Kindly take the above on your records.

Thanking you,

For Kajaria Ceramics Limited

RAM Digitally signed by
RAM CHANDRA
CHANDRA RAWAT
Date: 2024.01.31
RAWAT 14:09:08 +05'30'
R.C. Rawat
COO (A&T) & Company Secretary

Encl.: As above
Kajaria Ceramics Limited
Investor Update – Q3FY24

January 31, 2024

Content

❑ Chairman’s Message
❑ Financial Performance – Q3FY24
❑ Near Term Growth Outlook
❑ Growth Enablers
❑ Subsidiaries
❑ Expansion on Card
❑ Income Statement
❑ Shareholding Pattern

2
Investor Update Q3FY24
Chairman’s Message

Despite the sustained demand challenges witnessed over the past few quarters, we
achieved a 6% growth in sales volume, selling 27.09 MSM in Q3FY24 compared to
25.45 MSM in Q3FY23.

Consolidated revenue for the quarter reached ₹1152 crores, reflecting a 6% growth
compared to the same period last year. The EBITDA margin for Q3FY24 was
15.52%, marking an increase of 332 basis points compared to the previous year
same quarter. PAT for Q3FY24 grew by 40% to ₹104 crores as compared to ₹74
crores in Q3FY23.

Considering the optimism in the real estate sector, we remain optimistic about the
demand outlook for the tile industry. Given this positive outlook, we believe that
the company will continue to deliver industry-leading performance driven by our
sustained focus on branding, improving the quality of our distribution network and
by enhancing our focus on value added products.

Investor Update Q3FY24 3

Tile Volume Data (Consolidated)
Production (MSM) – Q3FY24 Production (MSM) – 9MFY23
59.20 60.63
21.93
20.50
13.99 15.25
5.51
5.01

15.49 16.42 45.21 45.38

Q3FY23 Q3FY24 9MFY23 9MFY24

Own Manufacturing Subsidiaries Own Manufacturing Subsidiaries

Sales (MSM) – Q3FY24 Sales (MSM) – 9MFY24

27.09 78.57
25.45 73.69
6.51 19.95
6.48 18.13

5.32 13.40 14.76

5.01

15.25 42.16 43.86

13.96

Q3FY23 Q3FY24 9MFY23 9MFY24

Own Manufacturing Subsidiaries Outsourcing Own Manufacturing Subsidiaries Outsourcing

Investor Update Q3FY24 4

Revenue Growth (Consolidated)
₹ in crores

1,151.75 3,337.60 35.38

12.75
1,091.13 26.16 3,177.11
33.96 71.74
8.95 58.52
92.21 261.21
18.78 79.48 225.29

234.28 653.90
720.35
229.86

194.85 199.45 519.10 560.05

559.21 579.10 1,694.14 1,688.87

Q3FY23 Q3FY24 9MFY23 9MFY24

Own Manufacturing (Tiles) Subsidiaries (Tiles) Own Manufacturing (Tiles) Subsidiaries (Tiles)
Outsourcing (Tiles) Sanitaryware / Faucets Outsourcing (Tiles) Sanitaryware / Faucets
Plywood Adheshive Plywood Adheshive

Investor Update Q3FY24 5

Profitability (Consolidated)
PBT – Q3FY24 ₹ in crores PBT – 9MFY23
146.15 436.48

325.65
99.71

Q3FY23 Q3FY24 9MFY23 9MFY24

PAT – Q3FY24 PAT – 9MFY24

319.67
104.19

236.48
74.32

Q3FY23 Q3FY24 9MFY23 9MFY24

Investor Update Q3FY24 6

Quarterly EBITDA and EBITDA Margin (consolidated)

18.00% 16.02% 200.00

14.60% 15.90% 15.52%
16.00% 180.00
14.00% 160.00
12.20%
140.00
12.00%
120.00
10.00%
100.00
8.00% 175.94 169.21 179.71 178.77
80.00
6.00% 133.07 60.00
4.00% 40.00
2.00% 20.00
0.00% -
Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24

EBITDA (Rs. in Crores) EBITDA Margin (%)

Investor Update Q3FY24 7

Key Ratios (Consolidated)

Net Debt (Rs. in Crores) Net Debt to Equity (x)

Mar-21 Mar-22 Mar-23 Dec-23 Mar-21 Mar-22 Mar-23 Dec-23

(0.10)
(0.11)
-236
-275
(0.17)

-373 (0.18)
-349

* Net of cash and cash equivalents

Investor Update Q3FY24 8

 Key Ratios (Consolidated)
Working Capital (Rs. in Crores) Return on Equity (avg.)
601 610

513 577
565 18.89%
432
466 17.62%
17.19%
310 314
373 298 15.49%

207

Mar-21 Mar-22 Mar-23 Dec-23 Mar-21 Mar-22 Mar-23 Dec-23

Debtors Inventory Creditors

Working Capital (Days) Return on Capital Employed (avg.)

59 59 23.84%
22.29%
21.29%
52 19.78%
50

Mar-21 Mar-22 Mar-23 Dec-23 Mar-21 Mar-22 Mar-23 Dec-23

• ROE as on 31st Dec 23 taken at average of net worth as on 31st March 23 & 31st Dec 23 and on 9M FY24 PAT.
• ROCE as on 31st Dec 23 taken at average of capital employed as on 31st March 23 & 31st Dec 23 and on 9M FY24 EBIT.
• Working capital days excludes capex creditors, capital advances and cash, cash equivalent & bank balance.
• For calculation of Mar-21 working capital days, only Q2 ,Q3 and Q4 FY21 sale has been considered.
Investor Update Q3FY24 9
Near Term Growth Outlook

❑ Recent upturn in real estate cycle to have a positive rub-off

effect on tile demand in FY25.
❑ Interest rates likely to come down next year – to boost real
estate sector further.
❑ Govt. thrust on building India and revival of private capex
❑ Sustenance of export growth momentum for Morbi players
to aid lower competitive intensity in domestic space.
❑ Shift expected to continue from unorganised to organised
sector.
❑ Our endeavor is to grow 5-6% higher than the growth in
the domestic tile industry
Investor Update Q3FY24 10
Growth Enablers

Manufacturing Channel Partners

People Branding

Scaling up of
Premiumisation
adjacencies

Investor Update Q3FY24 11

Growth Enablers contd..

1. MANUFACTURING
❑ Multi-locational plants equipped with cost efficient fuel arrangements.
❑ Recently installed Continua+ press in North & South India.
❑ Focus to add incremental units (Recently acquired Morbi unit, Nepal JV,
Plywood JV & Sanitaryware unit in Morbi) with higher asset turns &
RoCEs.

2. PEOPLE
❑ Most experienced sales team with average retained age at 14-15 years.
❑ Introduction of Sales Force Automation (SFA) from April 2024 to improve
employee productivity

3. PREMIUMISATION
❑ Increasing focus on value added tiles like large format tiles or slabs.
❑ Higher focus on premium sanitaryware and faucets.

Investor Update Q3FY24 12

Growth Enablers contd..
4. CHANNEL PARTNERS
❑ Strong distribution network encompassing 1,800+ dealers of which 400 have
exclusive showrooms
❑ Focus to improve quality of distribution network.
❑ Introduction of Dealer Management System (DMS) to improve business
efficiency.

5. BRANDING
❑ Branding spends currently around 3% of revenues.
❑ Only tile company to rope in two brand ambassadors for brand building.
❑ Aggressive branding spends to continue in tiles and accelerate on Kerovit

6. SCALING UP OF ADJACENCIES
❑ Sanitaryware & Faucets: Commissioning of state-of-art sanitaryware unit in
Morbi in March 2024, focusing on premiumisation and expanding
distribution network
❑ Plywood: Acquiring 51% stake in plywood company based in North India to
ensure consistency in supplies and quality.
❑ Tile grout & adhesives: Expanding range and distribution network.

Investor Update Q3FY24 13

Subsidiaries

A. KAJARIA VITRIFIED PVT. LTD.

Kajaria Vitrified Pvt. Ltd. is based in Morbi (Gujarat). Kajaria has 95% stake in the
same. The company has annual capacity of 8.90 MSM of polished vitrified tiles. The
Company has operated at optimum capacity during Q3 FY24.

B. KAJARIA INFINITY PVT. LTD.

Kajaria Infinity Pvt. Ltd. is based in Morbi (Gujarat). Kajaria Ceramics has 80.79%
stake in the same. Kajaria Infinity has annual capacity of 5.70 MSM of glazed vitrified
tiles and operated at optimum capacity during Q3 FY24.

C. SOUTH ASIAN CERAMICS TILES PVT. LTD.

Kajaria Ceramics has 51% stake in South Asian Ceramics Tiles Pvt. Ltd., Telangana.
The Annual production capacity of South Asian Ceramics is 4.75 MSM ceramic floor
tiles. The Company has operated at 89% capacity during Q3 FY24.

Investor Update Q3FY24 14

Subsidiaries contd..
D. KAJARIA BATHWARE (P) LTD. (KBPL)
Kajaria Bathware is a subsidiary of Kajaria Ceramics Ltd, in which Kajaria owns 85%
(on diluted basis), and Aravali Investment Holdings, Mauritius, a wholly-owned
subsidiary of WestBridge Crossover Fund, LLC, owns a 15% stake.

a) Sanitaryware: The Sanitaryware plant is situated in Morbi, Gujarat, with a

production capacity of 7.50 lakh pieces per annum. The plant has been
producing more value-added products and operated at 80% of the capacity in
Q3FY24.

b) Faucet: This facility is situated in Gailpur, Rajasthan, with a production capacity

of 1.60 million pieces per annum. The plant operated at 78% of the capacity in
Q3FY24.

E. KAJARIA PLYWOOD PVT. LTD. (KPPL)

Kajaria Plywood Pvt. Ltd., a wholly-owned subsidiary of Kajaria Ceramics Ltd.
KPPL is offering plywood and laminate products under the brand name KajariaPLY.
Kajaria Ply proposes to acquire majority stake in an entity to manufacture plywood
and allied products.

Investor Update Q3FY24 15

Subsidiaries contd..

F. KAJARIA INTERNATIONAL DMCC (wholly owned subsidiary)

▪ Kajaria International DMCC was established to expand its presence in the
international market. The company has undertaken two joint ventures – one in the
UAE and the other recently incorporated in the UK.

Investor Update Q3FY24 16

Geographical Spread

ASSET OVERVIEW
Total Tile Capacity 86.47 MSM at present

40.42 MSM
(Gailpur, Rajasthan)

6.50 MSM
(Malootana, Rajasthan) 11.40 MSM
(Sikandrabad, U P)

5.70 MSM
Kajaria Infinity,
(formerly known
as Cosa
Ceramics
Private Limited), 4.75 MSM Production Capacity (MSM)

Morbi, Gujarat) South Asian Ceramics Plant Polished Glazed

Ceramic Wall
(Balanagar, Telangana) & Floor Tiles
Vitrified Vitrified Total
Tiles Tiles
8.90 MSM 1. Sikandrabad (UP) - - 11.40 11.40
(Kajaria Vitrified, 8.80 MSM
(formerly known as (Srikalahasti, Andhra 2. Gailpur (Rajasthan) 31.32 - 9.10 40.42
Jaxx Vitrified Pradesh)
3. Malootana (Rajasthan) - 6.50 - 6.50
Private Limited),
Morbi, Gujarat) 4. Morbi (Gujarat) 8.90 5.70 14.60

5. Srikalahasti (AP) 8.80 8.80

6. Balanagrar (Telangana) 4.75 4.75

Total 36.07 15.40 35.00 86.47

Investor Update Q3FY24 17

Expansions on card

A. Kerrovit Global Pvt. Ltd. (Gujarat)

The Board in its meeting held on 21st January 2022, had considered that Kajaria Bathware Pvt
Ltd (KBPL) to invest upto ₹80 crores in Kerovit Global Pvt Ltd (KGPL) to make it a WoS and to set
up a sanitaryware manufacturing facility having production capacity of 6 lacs pcs p.a. in the state
of Gujarat. This expansion is expected to be completed by March/April 2024.

B. Investment in Nepal
The Board in its meeting held on 25th March 2023, had approved putting up a 5.1 MSM
capacity plant at a project cost of ₹ 181.49 crore in Nepal, on joint venture basis between the
Company and various individuals affiliated with Ramesh Corp, Nepal. The project is slightly
delayed due to incessant rain in Q3, and the project commissioning is now expected by June
2024.

C. Investment in Keronite Tiles Private Limited (KTPL)

The Board in its meeting held on 31st January 2024, has approved an investment up
to ₹ 50 crores for acquiring or manufacturing facility at Morbi (Gujarat) having an
annual production capacity of 6 MSM of GVT by way of acquiring upto 90% stake in
KTPL. After the proposed investment, KTPL will become a subsidiary of the company.

Investor Update Q3FY24 18

Expansions on card contd..

D. Investment in Kajaria Ultima Private Limited (KUPL)

The Board in its meeting held on 31st January 2024, has approved an investment upto
₹ 30 crore in KUPL to purchase land in Morbi. KUPL plans to put up a large format tile
manufacturing facility in Morbi at a later date. After the proposed investment, KUPL
will become a wholly owned subsidiary (WOS) of the company.

Investor Update Q3FY24 19

Income Statement - Financial highlights
Q3 FY24 Q3 FY23 Growth 9M FY24 9M FY23 ₹Growth
in crores
Standalone Consolidated Standalone Consolidated Standalone Consolidated Standalone Consolidated Standalone Consolidated Standalone Consolidated

Net Sales 1,024.27 1,151.75 986.47 1,091.13 4% 6% 2,998.91 3,337.60 2,880.05 3,177.11 4% 5%

EBITDA 143.61 178.77 116.84 133.07 23% 34% 426.21 527.69 371.82 416.07 15% 27%

EBITDA MARGIN 14.02% 15.52% 11.84% 12.20% 14.21% 15.81% 12.91% 13.10%

Other Income 16.50 11.27 12.69 7.48 30% 51% 44.29 28.80 37.25 23.20 19% 24%

Depreciation 29.68 38.91 23.39 32.53 27% 20% 78.75 105.50 67.88 98.54 16% 7%

Finance costs 2.22 4.98 4.45 8.31 -50% -40% 6.17 14.51 7.36 15.08 -16% -4%
Profit before Share of loss from JV,
128.21 146.15 101.69 99.71 26% 47% 385.58 436.48 333.83 325.65 16% 34%
exceptional items, and Tax

Share of loss from Joint Venture - (0.30) - - - (0.50) - -

PBT before Exceptional 128.21 145.85 101.69 99.71 26% 46% 385.58 435.98 333.83 325.65 16% 34%

Exceptional Items - loss (gain) - - - - - - - (3.66)

PBT 128.21 145.85 101.69 99.71 26% 46% 385.58 435.98 333.83 321.99 16% 35%

Tax Expense 33.25 37.89 26.05 26.05 28% 45% 99.36 108.09 85.68 86.48 16% 25%

PAT before Minority 94.96 107.96 75.64 73.66 26% 47% 286.22 327.89 248.15 235.51 15% 39%

Minority Interest - 3.77 - (0.66) - 8.22 - (0.97)

PAT after Minority 94.96 104.19 75.64 74.32 26% 40% 286.22 319.67 248.15 236.48 15% 35%

Cash Profit 124.64 143.10 99.03 106.85 26% 34% 364.97 425.17 316.03 335.02 15% 27%

Equity Share Capital 15.93 15.93 15.92 15.92 15.93 15.93 15.92 15.92

EPS (Basic) (Rs.) 5.96 6.54 4.75 4.67 26% 40% 17.97 20.07 15.58 14.85 15% 35%

Investor Update Q3FY24 20

Shareholding Pattern

As on December 31, 2023

Equity Shares Outstanding – 159.26 millions

Public /
Others,
8.65%

DII's, 25.54% Promoters,

47.49%

FII's, 18.32%

Investor Update Q3FY24 21

About Us

Kajaria Ceramics is the largest manufacturer of ceramic/vitrified tiles in India

and the 8th* largest in the world. It has annual capacity of 86.47 mn. sq.
meters presently, distributed across seven plants - one at Sikandrabad in
Uttar Pradesh, one at Gailpur and one at Malootana in Rajasthan, two at
Morbi in Gujarat, one at Srikalahasti in Andhra Pradesh and one at Balanagar
in Telangana.

For further information, please visit www.kajariaceramics.com or contact:

Mr. Sanjeev Agarwal, CFO Mr. Nehal Shah, DVP Strategy Mrs. Pallavi Bhalla, GM Investor Relations
+91 11 26946409 (Board), +91 11 26946409 (Board), +91 11 26946409 (Board),
+91 11 41064110 (Direct) +91 11 40946553 (Direct) +91 11 40946552 (Direct)
Email: [email protected] Email: [email protected] Email: [email protected]

Disclaimer: Certain Statements in this document may be forward-looking within the meaning of applicable laws and regulations. And actual
results might differ substantially from those expressed or implied. Such statements are subject to certain risks and uncertainties like regulatory
changes, local political or economic developments, technological risks, and many other factors could cause our actual results to differ. Kajaria
Ceramics Limited will not be in any way responsible for any action taken based on such statements.
* As per Ceramic World Review

Investor Update Q3FY24 22