Somany Ceramics (531548) Q4 06/07 earnings summary

Executive summary

• FY07 net sales rose 20.52% YoY to Rs. 27,583 lacs; production increased 13.88% to 12.37 million sqm, while PBT climbed to Rs. 489 lacs from Rs. 337 lacs.

• Growth initiatives focused on debottlenecking, efficiency, cost reduction, product development and wider market reach through branding, trading and service.

Financial highlights

• Standalone net sales were Rs. 27,583 lacs versus Rs. 22,886 lacs; gross sales were Rs. 29,528 lacs versus Rs. 24,519 lacs.

• Standalone profit before interest, depreciation and tax was Rs. 3,047 lacs versus Rs. 2,893 lacs; PBT was Rs. 489 lacs versus Rs. 337 lacs.

• Standalone PAT was Rs. 252 lacs versus Rs. 310 lacs; consolidated PAT was Rs. 251 lacs versus Rs. 312 lacs.

• Consolidated net sales were Rs. 27,656 lacs versus Rs. 22,955 lacs; consolidated PBT was Rs. 506 lacs versus Rs. 341 lacs.

Outlook and guidance

• Kassar expansion for large-format tiles, with planned capacity of ~8,500 sqm/day and capital cost of ~Rs. 2,200 lacs, was expected to commission in July 2007.

• Sanitaryware trading was planned for FY08; outlook was considered favorable for the next couple of years, supported by manufacturing and distribution capabilities, a national brand and economic conditions.

• Industry growth was projected at ~15% for the next couple of years.