Somany Ceramics Q3 FY 24 highlights –
Sales – 612 vs 622 cr
EBITDA – 59 vs 41 cr ( Margins @ 10 vs 7 pc – sharp margin recovery despite sub-optimal capacity utilisation – down from 91 to 82 pc )
PAT – 23 vs 11 cr ( jump in PAT is due to due margin recovery )
Company successfully commissioned a large format tiles / slab plant in Q3
Looking ahead – company is confident of demand recovery as Tiles are consumed towards the end of any project’s construction cycle. A lot of projects went live wef 2022, 23 – should now be nearing completion
Sanitary and Bathware sales @ 65 vs 60 cr. Adhesives sales @ 15 vs 9 cr
For 9M ending Dec 23, Sanitary and Bathware sales @ 187 vs 170 cr. Adhesives sales @ 41 vs 22 cr
Invested aprox 4 cr to set up a solar power plant at the Haryana facility to bring down the power costs in the long run
Spending 70-80 cr/ yr on advertising. Added 300 new dealers this yr
Aim to grow at rates 5-6 pc higher than Industry levels in FY 25
Capex for next yr only at 15-20 cr for Nepal plant
Company’s exports are aprox 3 pc of sales
Company has expanded its total capacity by aprox 25 pc in last 24 odd months vs under 20 pc capacity expansion for the Industry leader ( Kajaria ). Somany shall announce further capex only after 12-18 months from now
In Jan, the company has grown in mid single digits (unlike Q3). Same or better trend should continue in Q4. Margins are likely to be at or above 10 pc at EBITDA levels in Q4 as well
Disc: holding, inclined to add more at CMP, biased, not SEBI registered
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