Somany Ceramics (531548) Q4 07/08 earnings summary

Executive summary

• FY08 net sales rose to Rs. 32,936 lacs from Rs. 27,583 lacs; PBT increased to Rs. 748 lacs from Rs. 489 lacs, supported by higher production, improved product mix and outsourcing.

• Capacity expansion at Kassar and growth in outsourced tiles and sanitaryware supported volume; management expected domestic tile demand to keep growing at double-digit rates.

Financial highlights

• Net sales Rs. 32,936 lacs vs Rs. 27,583 lacs; gross sales Rs. 35,143 lacs vs Rs. 29,528 lacs.

• EBITDA Rs. 3,786 lacs vs Rs. 3,119 lacs; PBT Rs. 748 lacs vs Rs. 489 lacs; PAT Rs. 407 lacs vs Rs. 252 lacs.

• Interest and finance charges rose to Rs. 1,693 lacs from Rs. 1,383 lacs; depreciation was Rs. 1,345 lacs vs Rs. 1,247 lacs.

• Operating cash flow reached Rs. 2,506 lacs vs Rs. 1,799 lacs; cash and bank balances increased to Rs. 1,014 lacs from Rs. 582 lacs.

Outlook and guidance

• Management expected double-digit tile demand growth to continue, supported by housing, construction, real estate, retail, IT, ITes, BPO and telecom activity.

• Full-year contribution from the Kassar expansion was expected in FY09; initiatives included value-added products, cost reduction, better product mix and higher outsourcing volumes.