Somany Ceramics (531548) Q4 15/16 earnings summary

Executive summary

• FY16 revenue growth of 11.4% and volume growth of 9.4% outpaced a subdued Indian tile market; margin improvement and higher value-added sales supported earnings growth.

• Consolidated PAT was ₹6,470 lacs, up 39.5% YoY; proposed dividend was ₹2.30 per share, or 115% of face value.

• Tile capacity access reached ~60 msm annually; sanitary ware, bath fittings and exports expanded as growth platforms alongside the core tile business.

Financial highlights

• Consolidated gross sales ₹180,105 lacs in FY16 vs ₹161,335 lacs in FY15; net sales ₹171,004 lacs vs ₹153,516 lacs.

• Consolidated EBITDA ₹15,197 lacs vs ₹11,523 lacs; PBT ₹9,679 lacs vs ₹6,810 lacs, after a ₹443 lacs exceptional item.

• Consolidated PAT ₹6,470 lacs vs ₹4,639 lacs; EPS ₹16.25 vs ₹11.94.

• Standalone revenue from operations ₹173,070 lacs vs ₹154,105 lacs; EBITDA ₹13,221 lacs, up 27.0%, with EBITDA margin at 7.7% vs 6.8%.

Outlook and guidance

• FY17 demand prospects were supported by a forecast favourable monsoon, rural spending, 7th Pay Commission and OROP, Smart Cities, Housing for All and Real Estate Bill measures.

• Sanitary ware capacity was being expanded from 3.03 lakh to ~9 lakh pieces annually, with completion expected in FY17.

• Sanitary ware and bath fittings were targeted to reach ₹100 crore revenue each over the next 2–3 years; further bath fittings capacity options included sourcing, organic investment or acquisition.

• Strategy emphasized value-added products, brand investment, broader tier II/III distribution and asset-light capacity expansion, particularly through outsourcing.