SOMANY CERAMICS LIMITED
QUARTERLY RESULTS
FOR Q1 FY 15 (JUNE 2014)
SOMANY
CERAMICS has declared decent results for the first quarter ending June 2014.
Net
Sales have gone up by 28% YoY and net Profits have gone up by 39% YoY.
The
company says – it has been growing at CAGR
of 24% in last 6 years. In last year, it was 20%. It expects to grow at a
similar pace in future. It expects improvements in future based on Government’s
positive support to the sector.
The
growth drivers are brand equity, a diverse product basket, moving towards
further value addition, better quality, and a deeper distribution network.
Somany
is the first and the only company in the Indian tile industry to have a patent
for its highly abrasion-resistant tiles, VC Shield, making it the country’s
most durable tile.
The
company is focusing on adding capacities by partnering with local/family-driven
ventures, instead of going for greenfield expansion.
Over
the last few years, the company has made five such investments.
Invested
Rs. 15.28 crores in acquiring a 26% stake in five plants in Morbi (Gujarat),
with a right to buy back the entire capacity of 15.47 mn sqm
Invested
Rs. 5.30 crores in acquiring a 51% stake in one plant in Morbi (Gujarat), with
a right to buy back the entire capacity of 2.14 mn sqm
These
26% / 51% investment in equity is a cost efficient route of building production
capacity versus the greenfield expansion of 2.40 mn sqm which may cost Rs.
40-50 crores.
But,
it has 2 of its own Plants as well. Its Production and sales through both
routes are thus bound to grow in the quarters to come. This makes Somany a
dependable BUY for all Medium to long term Investors.
RESULTS TABLE
Somany Ceramics
|
Q1FY15
|
Q4FY14
|
Dif % QoQ
|
Q1FY14
|
Dif%YoY
|
FY14
|
Net Sales
|
331.02
|
408.99
|
-19.06
|
258.78
|
27.92
|
1257.79
|
OPT
|
14.32
|
21.55
|
-33.55
|
12.84
|
11.53
|
59.58
|
PBT
|
12.21
|
18.6
|
-34.35
|
8.84
|
38.12
|
44.02
|
NPT
|
8.07
|
11.18
|
-27.82
|
5.82
|
38.66
|
28.03
|
EPS
|
2.08
|
3.06
|
-32.03
|
1.69
|
23.08
|
8.01
|
EQ-FV-Rs2
|
7.77
|
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