ICICI Securities: Somany Ceramics - On Road To Recovery
An employee checks tiles before packing into the boxes. (Photographer: Asim Hafeez/Bloomberg)

ICICI Securities: Somany Ceramics - On Road To Recovery

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

ICICI Securities Report

The faster than anticipated recovery in Somany Ceramics Ltd.’s volumes in June 2020 led to a beat in Q1 FY21 revenues at Rs 1.69 billion (our estimate Rs 1.4 billion), down 57% YoY.

Cost saving initiatives and lower fuel costs too led to a beat in Ebitda, which came in at down Rs 116 million (our estimate Rs 210 million).

The silver lining for the quarter was balance sheet discipline with stricter control on working capital (receivables declined to Rs 1.98 billion in Q1 FY21 versus Rs 2.7 billion in March 2020), which led to debt repayment of Rs 500 million-600 million during the quarter.

With sales recovery likely to accelerate, management expects Q2 FY21 sales at more 85% of Q2 FY20 levels, which would drive sharp improvement in Ebitda margins.

Click on the attachment to read the full report:

ICICI Securities Somany Q1FY21 Results Update.pdf


This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.