Somany Ceramics (531548) Q4 08/09 earnings summary

Executive summary

• Consolidated sales reached Rs 4,670.1m in FY09; net profit rose 128% YoY to Rs 87.60m from Rs 38.35m.

• Growth was driven by higher production, outsourcing, value-added products and stronger sales realization despite the global downturn.

• Consolidated reserves and surplus reached Rs 579.3m at year-end.

Financial highlights

• Standalone net sales were Rs 4,420.9m, up 34.2% YoY; PBT rose to Rs 134.7m from Rs 74.8m and PAT to Rs 87.4m from Rs 40.6m.

• Consolidated PBT was Rs 135.9m versus Rs 73.1m; consolidated EPS was Rs 12.70 versus Rs 5.56.

• Standalone EBITDA was Rs 435.4m versus Rs 378.7m; production grew 8% to 14.937m sqm from 13.830m sqm.

• Proposed dividend increased to Rs 1.50 per share, or 15%, from Rs 1.00 per share, or 10%, subject to shareholder approval.

Outlook and guidance

• Management targeted 25% organic and new-sector growth in the next year through strategic expansion and diversification.

• Expected growth drivers include housing, infrastructure and real-estate demand, supported by a strong brand, distribution network and Haryana and Gujarat manufacturing locations.

• The Kassar expansion was stabilized and consistently producing large-format tiles; management expected growth momentum to continue as real-estate and housing demand showed signs of revival.