Somany Ceramics (531548) Q4 14/15 earnings summary

Executive summary

• FY15 net sales rose 21.97%; volume grew 11.8%, gross sales 20.6% and PAT 58.3%, despite a continued real-estate slowdown.

• Expanded manufacturing access by 7.90 msm to ~51.52 msm; higher value-added products and marketing supported stronger realizations and profitability.

• Exports more than doubled to ₹6,434 lacs, with sales across 40+ countries; the Board recommended a 100% dividend of ₹2 per share.

Financial highlights

• Standalone net revenue from operations was ₹154,105 lacs vs ₹125,967 lacs; gross sales reached ₹159,830 lacs, up 20.6%.

• EBITDA rose 23.36% to ₹10,409 lacs; PBT increased 48.82% to ₹6,551 lacs and PAT advanced 58.33% to ₹4,438 lacs.

• Consolidated revenue from operations was ₹154,312 lacs vs ₹126,476 lacs; consolidated PAT was ₹4,639 lacs vs ₹2,887 lacs.

• Finance costs fell 10.9% to ₹1,631 lacs, attributed to lower interest rates, term-loan repayments and improved working-capital utilization.

Outlook and guidance

• FY16 plan: add 4 msm of access capacity, mostly own manufacturing and value-added products; target revenue and profit growth above industry averages.

• Intensify brand promotion and expand touch points, particularly in tier II and III cities; accelerate exports and sanitary ware and bath fittings toward ₹100 crore each.

• Proposed 4 msm Kassar expansion and expected production start at Somany Fine Vitrified in September 2015 were intended to extend capacity and product availability.