Monday, July 28, 2014

SOMANY CERAMICS LTD - QTRLY RESULTS - Q1 FY 2014-15 (JUNE 14) - SALES UP 28% NET PROFITS UP 39% YoY - FUTURE PROMISING



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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