Somany Ceramics (531548) Q4 12/13 earnings summary

Executive summary

• FY13 net revenue from operations rose 20.2% to Rs. 1,050.15 crore; gross revenue grew 20.4% to Rs. 1,112.42 crore, ahead of the industry’s 12–14% growth.

• Growth was supported by value-added products, outsourced and JV production, wider distribution, branding, and stronger retail presence.

• The asset-light model expanded access to capacity while keeping debt broadly stable; net worth increased and gearing improved.

Financial highlights

• Standalone net revenue from operations was Rs. 1,050.15 crore versus Rs. 873.23 crore in FY12; gross revenue was Rs. 1,112.42 crore, up 20.4%.

• EBITDA was Rs. 87.05 crore, up 16.8%; PBT was Rs. 46.67 crore and PAT Rs. 31.59 crore, up 30.8% and 27.6%, respectively.

• Basic and diluted EPS increased to Rs. 9.16 from Rs. 7.18; dividend recommended was Rs. 1.20 per Rs. 2 share, versus Rs. 0.80 in FY12.

• Consolidated revenue from operations reached Rs. 1,053.87 crore; consolidated PAT including associate profit was Rs. 32.01 crore and EPS Rs. 9.28.

Outlook and guidance

• Plans included further digital and value-added tile production, cost optimisation, new digital wall and floor tile launches, and higher export sales and realisations.

• Retail plans targeted more Exclusive showrooms in Tier-2 and Tier-3 cities, stronger architect and dealer engagement, improved supply-chain management, and continued brand investment.

• Growth priorities included entering more export markets, quadrupling digital tile sales, and doubling polished vitrified tile and sanitaryware offtake.

• Management expected urbanisation, housing demand, and a wider GST net to support branded tile demand and organised players.