Somany Ceramics Limited has informed the Exchange about Investor Presentation
10th August, 2023
The General Manager, Corporate Relationship Dept., BSE Ltd. 1st Floor, New Trading Ring, Rotunda Building, P. J. Towers, Dalal Street, Fort, Mumbai‐400 001 Scrip Code: 531548
The Secretary, National Stock Exchange of India Ltd., Exchange Plaza, 5th Floor, BandraKurla Complex, Bandra (East), Mumbai 400 051 Symbol: SOMANYCERA
Sub: Investor Update for the Q1/FY23‐24.
Dear Sir/Madam,
Please find enclosed herewith Investor update of Somany Ceramics Limited highlighting the performance of the Company during the quarter ended on 30th June, 2023.
This is for your information and record.
Thanking you,
Yours faithfully, For Somany Ceramics Limited
Ambrish Julka Sr. GM (Legal) and Company Secretary M No.: F4484
Encl: as above
SOMANY CERAMICS LIMITED
Investor Update – Q1’Fy24
August 10, 2023
Safe Harbor
This presentation and the accompanying slides (the “Presentation”), which have been prepared by Somany Ceramics Ltd (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company.
Safe Harbor
This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded.
This presentation contains certain forward looking statements concerning the Company’s future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, competition (both domestic and international), economic growth in India and abroad, ability to attract and retain highly skilled professionals, time and cost over runs on contracts, our ability to manage our international operations, government policies and actions regulations, interest and other fiscal costs generally prevailing in the economy. The Company does not undertake to make any announcement in case any of these forward looking statements become materially incorrect in future or update any forward looking statements made from time to time by or on behalf of the Company.
Message
We have achieved volume growth of 8% during Q1, while aiming at a double-digit growth, despite tough market conditions. Capacity utilisation during the quarter was lowest in past many quarters barring pandemic days due to slower than expected demand and high level of inventories coupled with routine maintenance shutdowns.
We reported consolidated revenue of INR 584 crores, a growth of 5% and operating margin improved by 0.6% to 8.7% as compared to corresponding quarter of last year primarily on account of softening in gas price.
We have further strengthened our working capital during the quarter and continue to adhere to robust credit discipline, which we had put in place few years ago.
We expect an improvement in demand outlook, which is already resulting in higher capacity utilisation. The benefit of operational efficiencies, on account of higher capacity utilisation as well as cost optimisation measures taken in recent past, coupled with stable gas price should improve the operating margin going forward.
Performance Snapshot
Capacity
Production
Sales Mix
Financial (Standalone)
Tiles volume growth of 8% to 15.41 msm
Sales growth of 7% to ₹ 577 crores
Own manufacturing (37%), JVs (35%) & Others (29%)
PBT and PAT stood at ₹ 35 and ₹ 23 crores respectively
Tiles capacity of ~75 msm p.a. (including dedicated outsource tie ups)
Sanitaryware capacity of 0.78 mn pcs p.a. (excluding outsource tie ups)
Bath fittings capacity at 1.30 mn pcs p.a. (excluding outsource tie ups)
Tiles Production of 10.80 msm; Own plants (6.06 msm) and JVs (4.74 msm)
Capacity Utilisation in Q1 at:
• 70% in tiles • 58% in sanitaryware • 70% in faucets
Sales Performance Tiles Volume (msm)
₹ in crores
14.25
3.55
4.99
5.71
15.41
3.98
4.94
6.49
540.04
6.13 54.04
123.39
168.00
577.43
11.71
58.18
125.33
171.39
188.48
210.82
Q1'Fy23
Q1'Fy24
Q1'Fy23
Q1'Fy24
Own Manufacturing
JVs (Tiles)
Others Tiles
Own Manufacturing Others Tiles Adhesives
JVs (Tiles) Bathware
Based on Standalone figures
Working Capital & Net Debt
Standalone
Consolidated
220
175
137 31
234
230
149
21
296
262
221
20
361
231
207
0
391
378
268
450
368
243
274
237
260
39
31
20
245
221
184 51
Mar'21
Mar'22
Mar'23
Jun'23
Mar'21
Mar'22
Mar'23
Jun'23
Working Capital days
Debtors
Working Capital days
Debtors
Inventories
Trade payable
Inventories
Trade payable
37
-0.03
31 0.04
0.05
-0.1
Mar'21 Mar'22 Mar'23
Jun'23
-20
308
280
171
190
0.27
0.39
0.39
0.24
-83
Mar'21
Mar'22
Mar'23
Jun'23
Net Debt
Net Debt Equity ratio
Net Debt
Net Debt Equity ratio
Figures in INR crores; Working Capital days excluding investments & cash balance, short term borrowings, capital creditors
Profit & Loss (Standalone)
Particulars
Q1'Fy24 Q1'Fy23
Growth
FY 23
FY 22
Growth
Sales
EBIDTA
577
540
6.9%
2426
2061
17.8%
40
37
6.3%
147
150
(2.4%)
EBIDTA margin
6.8%
6.9%
0.0%
6.0%
7.3%
(1.3%)
Profit Before Tax
35
32
7.6%
123
117
5.1%
PBT margin
6.0%
6.0%
0.0%
5.1%
5.7%
(0.6%)
Exceptional Item
PBT after Exceptional Item
Tax expenses
Profit after tax
3
31
8
23
0
-
1
0
-
32
(2.8%)
122
117
4.2%
8
(2.2%)
24
(3.1%)
32
90
29
88
9.1%
2.6%
EPS (Rs.)
5.51
5.68
(3.0%)
21.21
20.67
2.6%
Figures in ₹ crores
Profit & Loss (Consolidated)
Particulars
Q1'Fy24 Q1'Fy23
Growth
FY 23
FY 22
Growth
Sales
EBIDTA
584
555
5.2%
2465
2083
18.3%
51
45
12.6%
189
207
(8.6%)
EBIDTA margin
8.7%
8.1%
0.6%
7.7%
9.9%
(2.2%)
Profit Before Tax
25
26
(4.7%)
95
126
(24.8%)
PBT margin
4.3%
4.7%
(0.4%)
3.9%
6.1%
(2.2%)
Exceptional Item
PBT after Exceptional Item
Tax expenses
Profit after tax
PAT - Controlling Interest
7
18
6
13
15
0
-
26
(29.9%)
7
(15.4%)
19
(35.1%)
21
(29.1%)
2
93
26
67
71
0
-
126
(26.5%)
33
(21.3%)
93
(28.4%)
89
(19.4%)
EPS (Rs.)
3.43
4.84
(29.1%)
16.83
20.88
(19.4%)
Figures in ₹ crores
Pan India Manufacturing Facilities
1.30 mn pcs @ Derabassi, Punjab (Faucet)
23.32 MSM @ Bahadurgarh, Haryana (Tiles)
Tiles Adhesive @ Bahadurgarh, Haryana
10.13 MSM @ Ahmedabad, Gujarat (Tiles)
Tiles Adhesive @ Ahmedabad, Gujarat
21.33 MSM @ Morbi, Gujarat (Tiles)
0.78 mn pcs @ Morbi, Gujarat (Sanitaryware)
7.08 MSM @ Tirupati, Andhra Pradesh (Tiles)
Shareholding as on 30th Jun’23
Particulars
30th Jun’23
31st Mar’23
Promoters
54.8%
54.8%
21.7%
FII
DII
1.6%
1.4%
21.9%
22.0%
54.8%
21.9%
Others
21.7%
21.8%
Equity Shares
4,24,74,208
4,24,74,208
1.6%
Equity shares of ₹ 2/- each
Promoters
FII
DII
Others
For further information, please contact:
Mr. Kumar Sunit, Head – Strategy & Investor Relations
kumar.sunit@somanyceramics.com
www.somanyceramics.com
CIN - L40200WB1968PLC224116