Somany Ceramics Q1 Review - A Descent Quarter Amid Inflationary Cost Pressure: IDBI Capital

Somany Ceramics Q1 Review - A Descent Quarter Amid Inflationary Cost Pressure: IDBI Capital
<div class="paragraphs"><p>A couple choosing tiles in a store. (Source: freepik)</p></div>
A couple choosing tiles in a store. (Source: freepik)

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IDBI Capital Report

Somany Ceramics Ltd.’s Q1 FY23 result was in-line with our estimates on all parameters. Despite steep increase in gas prices, the company managed to hold margins on a sequential basis.

The management guided that though Morbi’s tile manufacturers have opted for a long shut down, Somany Ceramics’ plants should be operational and there won’t be any negative impact on sales volume.

Net sales increased by 69.5% YoY to Rs 5,591 million, while Ebitda came in at Rs 449 million, up by 94.8% over Q1 FY22.

The company reported net profit of Rs 206 million, higher by 362.6% YoY. Somany Ceramics’ capacity expansion in value added products and focus on strengthening distribution network bodes well for future earnings growth.

Click on the attachment to read the full report:

IDBI Capital Somany Ceramics Q1FY23 Result Update.pdf


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