KAJARIACERNSEDecember 27, 2025

Kajaria Ceramics Limited

5,800words
142turns
13analyst exchanges
6executives
Management on call
Chetan Kajaria
VICE CHAIRMAN – KAJARIA CERAMICS LIMITED
Rishi Kajaria
MANAGING DIRECTOR – KAJARIA CERAMICS LIMITED
Sanjeev Agarwal
CHIEF FINANCIAL OFFICER
Parveen Gupta
DEPUTY VICE PRESIDENT,
Anubhav Sharma
GM PURCHASE – KAJARIA CERAMICS LIMITED
Sneha Talreja
NUVAMA WEALTH MANAGEMENT LIMITED
Key numbers — 29 extracted
INR150 crore
e outcomes were tangible and swift. During the year, we have achieved cost savings of more than INR150 crores on an annualized basis. These efficiencies came from multiple areas, including reduction of manp
rs,
become the leader in the industry, not only for sales but in costs as well. To all our stakeholders, I would like to reassure that Kajaria's fundamentals remain very, very strong. We are optimistic a
INR 6,
he last financial year, there was a, in this particular subsidiary, the CWIP was to the extent of INR 6, 7 crores, which was a lapse on our part. We ignored that, so while doing this vendor onboarding, w
7 crore
financial year, there was a, in this particular subsidiary, the CWIP was to the extent of INR 6, 7 crores, which was a lapse on our part. We ignored that, so while doing this vendor onboarding, we came
99%
an exceptional thing, but still we are taking the opinion, but we or the auditor will decide, but 99% it will be shown as an exceptional expenditure. Shaleen: Any chances of recovery of any? Ma
INR60 lakh
ry of any? Management: Actually, we have recovered on the very next day. He has given us around INR60 lakh back, and he has promised to pay more, but I cannot quantify how much amount. We are not very h
INR400
ly a very small segment for you all in the overall scheme of things. We only make about less than INR400-odd crores in revenues. We were making only about 4%-odd margin last year in this business. So re
4%
f things. We only make about less than INR400-odd crores in revenues. We were making only about 4%-odd margin last year in this business. So really, overall, it's small in the scheme of things. An
INR20
dd margin last year in this business. So really, overall, it's small in the scheme of things. And INR20-odd crores on that particular amount is a big number? Rishi Kajaria: Smartly, h
15%
s big in the overall scheme? Rishi Kajaria: Correct. Sneha Talreja: Lastly, you also have a 15% private equity stakeholder in this, which is WestBridge. Any involvement from them, or what's the
INR8.5 crore
Rahul Agarwal: Okay. If I look at that 31st March, the capital work in progress number was about INR8.5 crores. Is this number, correct? Parveen Gupta: Yes, yes, this number is correct. Rahul Agarwal:
INR20 crore
wanted to clarify the estimation of overall payments which were made on account of CWIP was about INR20 crores. That's an estimate as of now and that number could be lower when the inquiry is basically compl
Advertisement
Guidance — 20 items
Rishi Kajaria
opening
“Any deviation from this standard will not be acceptable and will be severely dealt with.”
Rishi Kajaria
opening
“I want to emphasize that this reflects our commitment to transparency and robust governance going forward.”
Chetan Kajaria
qa
“And in case of any project purchase, multiple bids are invited and given to an L1 vendor.”
Sanjeev Agarwal
qa
“So, this was, even the project is already complete and it was showing it as an open category.”
Sanjeev Agarwal
qa
“And we will further, we are going after this, we will be extra vigilant.”
Shaleen
qa
“I think it should be shown as an exceptional thing, but still we are taking the opinion, but we or the auditor will decide, but 99% it will be shown as an exceptional expenditure.”
Management
qa
“We are not very hopeful the full amount will be recovered.”
Management
qa
“We are not hopeful even the half will be recovered.”
Sanjeev Agarwal
qa
“It is going to be a system-based organization going forward, not a person-based organization.”
Parveen Gupta
qa
“This will be approximately INR20 crores.”
Risks & concerns — 1 flagged
You mentioned that the recoverability seems to be quite difficult.
— Rajesh Ravi
Advertisement
Q&A — 13 exchanges
Q
Can we talk a little bit about…
Sanjeev Agarwal
Can you speak a bit louder, Shaleen, please? Yes, Sanjeev ji. Can we speak a little bit in detail exactly what happened and like how this thing has, like what lead to it and what exactly, what the nature of, whatever the fraud or misappropriation of what has happened. Can we speak a little bit in detail and what was the basic reason behind it? So, Shaleen, morning. In case of Kajaria Ceramics, we have a robust and automated vendor onboarding system already in place. This also involves a committee comprising of senior people from IT, Purchase, Accounts and the respective functional heads who ap
Q
Hi, thanks for the opportunity. Just a couple of questions from my end. Firstly, how long has this employee been with you all? That's first, so that we can get to know what could have been the severity and how long this incident must have happened. Although you have mentioned that incident is from 2 years, but we still would want to know that?
Rishi Kajaria
He has been with us for the last 8 years. This thing has been happening for the last 2 years, but it was much lesser earlier. In the last 4 or 5 months, it increased a lot. That is how I think we got to know about things. But certainty of not having it before? Because he is an 8 year-old employee with us and has been loyal for so long? Honestly, he was also reporting to our chief accounts officer, who has been with us for 37 years. I would say there was some judgment error on our part as well. It was a lapse of -- I mean, it happened. Secondly, this division is actually a very small segment fo
Q
Sir, no questions. All questions answered. Thank you so much.
Management
Q
Thank you for the opportunity. Sir, just a clarification. This is related to the working progress CWIP, or is it a capex you have done to the new plant?
Parveen Gupta
Can you please repeat your question? So, once you have said that's related to the CWIP, that is related to the vendor. And again, in the last question you have said that's a new plant you had put in. So, is it related to the capex of the new plant, or is it related to the CWIP related to the vendor? It's related to capex of that new plant. Actually, capex was going on in between. He parked some entries in CWIP. Okay. And is there any insurance related to that, if that is a part of a capex? No, there is no insurance. Okay. Yes. Thank you. That's it, sir. Thank you.
Q
Hi, sir. My question pertains to again the same. You mentioned that the recoverability seems to be quite difficult. And also you mentioned that most of the siphoning would have happened predominantly in the past four to five months and most of the siphoning would have happened through some business account of the erstwhile CFO. So, just want to understand where would the money would have subsequently been sent out because this is a considerable amount?
Sanjeev Agarwal
The police has asked for all his bank statement and they are checking them. Okay. And what you mentioned is, if I heard it correct that most of the siphoning has happened in this financial year itself? Correct. Okay. Great. And lastly, you mentioned that, earlier you mentioned that three, four more months would be needed to complete the on-boarding process for all the vendors or is it already been done and this three to four months additional is for something else? Sir, actually for Kajaria, we are already done for subsidiaries because we need to mitigate the data from existing to our new syst
Q
Hello. Good morning to the management. My question is why was Kajaria 2.0 plan started? Was there any indication from the internal auditor or statutory auditor that this exercise is required because they found any deficiency or was there any indication at all from the internal or statutory auditor? And the second question at the initial…
Sanjeev Agarwal
Ma’am your voice was not very clear. Yes, the exercise of Kajaria 2.0 plan was started, that was explained by the management at the initial call. Correct. So, why was it required? Did the internal auditor or statutory auditor suggested that this plan should be implemented or was there any role from the internal or statutory auditor pointing out that there may be some fraud because this is for two years and accounts are audited. What was the role? I'll tell you. It was not pointed out to anybody. So, as I said in the beginning, in April we started a unification process in the company where we w
Q
Yes. Hi, good morning and thank you for the opportunity. I just wanted to clarify a few things. We are referring to the balance sheet of Kerovit Global Private Limited, is that correct?
Rishi Kajaria
Correct, correct. Okay. If I look at that 31st March, the capital work in progress number was about INR8.5 crores. Is this number, correct? Yes, yes, this number is correct. Okay. So, I just wanted to clarify the estimation of overall payments which were made on account of CWIP was about INR20 crores. That's an estimate as of now and that number could be lower when the inquiry is basically complete. Is this understanding, correct? No, more or less this amount is correct. We have checked all the entries of last 2 years. So, this amount is correct. This will be approximately INR20 crores. That m
Q
Hi. Thank you for the opportunity. Sir, firstly, this INR20 crores number which you have completed, the employees also accepting this INR20 crores number, we both are on same page.
Chetan Kajaria
Yes. And secondly, you said the recovery might be tough. So both are on same page INR20 crores, right? But the employees are accepting that, taken 20, right? So, why do you think the recovery would be tough if the employee has taken INR20 crores possibly he might be having the funds with him? So why so recovery should be tough and what is the status of the employee? Is he put behind the bar right now? So this is, we have already filed a complaint with the local police station and Economic Offences Wing. And they are -- he is under interrogation and based on the feedback from him and based on h
Q
Good morning, sir. Just wanted to understand…
Management
Q
Is it better now?
Management
Q
So I was saying that I'll step backwards and understand whenever there is a capex program and RSU is there to supply it. So is there any person involved other than the CFO, either from the procurement team or the inventory team? Because whenever the inventory is made, there has to be a system against which payments are made. So how come without inventory coming into the system, payments have been made to the supplier? And is it a single supplier fraud or a multiple supplier fraud?
Parveen Gupta
No, it is a single person fraud. He misrepresented to his juniors that he has some approval for paying some advances. It was not some raw material. It was advance for some machinery. Where he forged the Chairman's signature as well. So he paid as advance. Got it.
Q
Yes. Hi sir. Just a follow-up question. See, this INR20 crores, which was all in CWIP, and as you mentioned that this was, you know, a forged advance payment towards purchase of some machinery. Sir, I just wanted to understand, you know, given that most of your capex was already done, so did it not raise red flags immediately when, you know, this being INR20 crores? And what is the quantum of the total capex which was done in this subsidiary? And what could have taken it such delays to identify this? This is commendable that you could have identify this and bring it to notice of everyone and d
Parveen Gupta
No, this company was started capex in last year, around May 2023. Then entire year capex was going on and total capex was approximately INR120 crores. Out of this INR120 crores, CWIP was very small amount, negligible amount, INR8 crores. In this INR8 crores, he hidden that amount of INR6 crores, INR7 crores. So capex was going on regularly and he misrepresented to his junior that he had some management approval for some advances. And when the capex was already over and incremental INR14 crores, you know, advance payout in this financial year, if I understand correct, you know, and that would b
Q
So, thank you everyone for your attendance. And we do admit there was a lapse in our systems and controls. But going forward, we are taking all steps to rectify that. The systems and processes will be much stronger going forward in the future. And we are more fitter and stronger organization from here on. Thank you so much.
Rishi Kajaria
Thank you. And just to add to that, that yes, Kajaria will be much, much better off from here on. Moderator2023: Thank you. On behalf of Nuvama Wealth Management Limited, that concludes this conference. Thank you for joining us. And you may now disconnect your lines.
Speaking time
Sanjeev Agarwal
21
Rishi Kajaria
19
Parveen Gupta
16
Moderator
14
Rajesh Ravi
14
Shaleen
11
Sneha Talreja
9
Rahul Agarwal
8
Keshav Lahoti
7
Amreen Gulnaaz
5
Advertisement
Opening remarks
Sneha Talreja
Thank you, Rehan. Good morning all. We welcome you to Kajaria Ceramics conference call to discuss regarding the fraud in the step-down fully-owned subsidiary of the company. We are here today joined by the senior management of Kajaria Ceramics represented by Mr. Chetan Kajaria, Vice Chairman, Mr. Rishi Kajaria, MD, Mr. Sanjeev Agarwal, CFO and Mr. Parveen Gupta, DVP Finance. We will now start with the opening remarks from the management followed by the Q&A. Over to you, Rishiji, for the opening remarks.
Rishi Kajaria
Thank you, Sneha. Good morning, everyone. I'll just start with a little background. In April 2025 in Kajaria, we started the unification process with a very clear objective to bring together our sales operations across India. Earlier, the same dealers were being approached by multiple teams for vitrified and ceramic tiles. This unification was a strategic step towards a sharper focus, better coordination and stronger execution in the market. Building on the momentum in May 2025, we also launched Operation Manthan. Operation Manthan was a structured review of all our internal systems, processes and business frameworks. We started with Kajaria Ceramics Limited, where the exercise helped us identify a lot of operational gaps as well as significant cost optimization opportunities. The outcomes were tangible and swift. During the year, we have achieved cost savings of more than INR150 crores on an annualized basis. These efficiencies came from multiple areas, including reduction of manpower
Advertisement
← All transcriptsKAJARIACER stock page →