Somany Ceramics (531548) Q4 10/11 earnings summary

Executive summary

• FY2010-11 net sales rose 33.53% to ₹710.58 crore; PAT increased 14.52% to ₹23.43 crore as energy, input and financing costs pressured margins.

• Sales volume grew 22.20% to 28.07 million sqm, supported by capacity expansion, outsourcing, wider distribution and a higher value-added mix.

Financial highlights

• Gross sales increased to ₹751.78 crore from ₹563.02 crore; net sales were ₹710.58 crore versus ₹536.94 crore.

• EBITDA rose 18.18% to ₹68.92 crore; PAT increased 14.52% to ₹23.43 crore, below revenue growth amid cost pressures.

• EPS was ₹6.79 versus ₹5.93; proposed dividend was ₹0.70 per ₹2 share, or 35%.

Outlook and guidance

• FY2011-12 targets included VC tile sales of ₹120 crore, Durastone revenue of ₹50 crore and Duragres revenue of ₹40 crore; full-body vitrified tile segment guidance was ₹100 crore.

• Polished vitrified tile sales were targeted to grow 100%; plans included more value-added designs, capacity debottlenecking and investment in inkjet digital printing technology.

• Bathroom fittings and sanitaryware vertical was expected to grow from ₹18.49 crore to ₹36 crore in FY2011-12.