Somany Ceramics (531548) Q4 13/14 earnings summary

Executive summary

• Gross turnover rose 19.3% YoY to ₹1,327.58 crore, outpacing industry growth of ~14%, despite a Morbi supply shutdown and a difficult market.

• Manufacturing capacity access reached ~44 million sqm; utilization exceeded 95%, supported by own plants and outsourced production.

Financial highlights

• Gross sales increased 19.3% to ₹1,322.75 crore from ₹1,108.51 crore; net revenue from operations was ₹1,257.79 crore vs ₹1,050.15 crore.

• Standalone PAT fell to ₹2,803 lakh from ₹3,159 lakh; PBT was ₹4,402 lakh vs ₹4,667 lakh.

• Standalone EBITDA was ₹8,438 lakh vs ₹8,705 lakh; EPS declined to ₹8.01 from ₹9.16.

• Consolidated revenue from operations was ₹1,262.91 crore vs ₹1,053.87 crore; PAT after minority interest was ₹2,887 lakh vs ₹3,201 lakh, with EPS of ₹8.25 vs ₹9.28.

Outlook and guidance

• FY15 margin recovery could benefit from stabilizing fuel and exchange rates, higher volumes and improved product mix.

• Expansion plans included 2.44 million sqm of ceramic capacity at Amora, 3.06 million sqm of PVT at Acer, 2.40 million sqm at the Kadi plant, and investment in up to 5 million sqm of PVT capacity.

• Priorities included an asset-light expansion model, more franchise stores, deeper reach in Tier 2 and 3 cities, higher exports and a larger sanitaryware and bath fittings business.