ICICI Securities: Somany Ceramics’ Balance Sheet Strengthens In Q2; Growth Returns 
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ICICI Securities: Somany Ceramics’ Balance Sheet Strengthens In Q2; Growth Returns 

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Somany Ceramics Ltd. posted an impressive Q2 FY21 beat on all counts:

  1. faster than estimated recovery in volumes (3% YoY growth versus our expectation of 10% decline);
  2. higher than expected Ebitda margin (11.7% versus estimated 10.5%); and
  3. sharp improvement in balance sheet quality with strict working capital management leading to a sharp net debt decline of Rs 1.92 billion in H1 FY21.

Gross margin for the quarter was however down 220 basis points YoY.

Click on the attachment to read the full report:

ICICI Securities Somany Q2FY21 Results Update.pdf

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