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IDBI Capital Report
Somany Ceramics Ltd.’s Q4 FY22 result was in-line with our estimates on net sales front, while higher than estimated increase in raw material prices weighed on margins.
The company’s plant shutdown at Kadi and Kassar led to lower sales volume by ~2 million square metre.
The management guided that demand traction is robust and Somany Ceramics' incremental capacity of 11 million square metre should aid to capture incremental growth in near term.
Net sales increased by 9.2% YoY to Rs 6,168 million, while Ebitda came in at Rs 507 million, down by 43.5% over Q4 FY21.
Somany Ceramics reported net profit of Rs 171 million, lower by 44.9% YoY.
Given inflationary pressure on key raw materials continue, we have trimmed our Ebitda margin estimates by 120 basis points/140 bps respectively over FY23E/FY24E.
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