Somany Ceramics Q2 Review - Another Quarter Of Strong Sales Volume Growth: IDBI Capital
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IDBI Capital Report
Somany Ceramics Ltd.’s Q2 FY22 result was in-line with our estimates on key parameters.
The company witnessed robust product off-take in retail segment which aided net sales growth.
Though increase in raw material prices was a concern, the management guided that increased cost was passed to the customers with a lag of 15-20 days. Net sales increased by 32.3% YoY, while Ebitda came in at Rs 682 million, up 38% YoY.
Somany Ceramics reported net profit of Rs 350 million as against Rs 205 million in the same quarter last year. The management guided that sales volume growth will remain ~15%-20% in H2 FY22E.
We believe timely capacity addition, focus on improving working capital cycle and healthy performance of bathware segment will drive sustainable earnings growth in near future.
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