Kajaria Ceramics has decided to discontinue its loss-making plywood business, Kajaria Plywood, due to its lack of strategic fit and continued losses, expecting closure by June 30, 2025. This decision led to a 58.6% decline in consolidated profit for the March quarter, settling at Rs 43.18 crore.
Kajaria Ceramics said it has exited its loss-making plywood business. The board of the company on Tuesday "approved to discontinue the operations of Kajaria Plywood, wholly owned subsidiary due to lack of strategic fit & continued losses", Kajaria Ceramics informed the bourses.
The company has fully impaired its investment and loan to Kajaria Plywood, amounting to Rs 112.38 crore, and expects to close the plywood business by June 30, 2025.
Kajaria Ceramics, on Tuesday, declared its results for the March quarter, in which its consolidated profit declined 58.6 per cent to Rs 43.18 crore, due to settlement with JV partners and vendors of the plywood business.
"Profit after tax for Q4FY25 was Rs 43 crore as compared to Rs 102 crore in Q4FY24, mainly due to additional provision in plywood division for settlement with JV partners and vendors," said its Chairman Ashok Kajaria in its earnings statement.