Somany Ceramics (531548) Q4 11/12 earnings summary

Executive summary

• FY2011-12 turnover rose 22.89% to ₹921.10 crore; standalone PAT increased 5.63% to ₹24.75 crore despite inflation, higher input costs and slower real-estate activity.

• Growth was driven by outsourced and own manufacturing, a richer value-added mix, product innovation and a wider distribution network.

Financial highlights

• Gross sales increased 22.89% to ₹921.10 crore; audited revenue from operations was ₹873.23 crore after excise duty of ₹50.74 crore.

• EBITDA rose 9.49% to ₹74.56 crore; operating profit increased to ₹56.34 crore, while PAT grew 5.63% to ₹24.75 crore.

• Standalone PBT was ₹35.69 crore versus ₹33.71 crore; EPS was ₹7.18 versus ₹6.79.

• Consolidated PAT was ₹25.11 crore and consolidated EPS ₹7.28, compared with ₹23.86 crore and ₹6.92 in FY2010-11.

Outlook and guidance

• FY2012-13 priorities include commissioning additional digital printers, maximising utilisation and advancing high-margin digital, VC Shield and glazed vitrified tile products.

• Commander Vitrified was expected to begin production in June 2012; access to its 2.65 mn sqm annual capacity was projected to support ₹100 crore turnover.

• Management expected continued industry growth, while warning that raw-material, energy and manpower costs, interest rates, rupee weakness and capacity additions would pressure margins.