The shares of this ceramic tile manufacturer surged by 17% following the strong growth in net profit of 39% year-on-year.
At 11:30 a.m., Somany Ceramics shares were trading at ₹720 per share, up 15.87% on the National Stock Exchange from the previous close price. The company has a market capitalization of ₹2,964 crore.
Somany Ceramics recently reported robust financial performance, with a consolidated net profit of ₹33.88 crores in Q4FY24, reflecting a notable 39% increase from the previous year’s corresponding quarter. This growth was supported by a surge in total revenue for the same quarter, which reached ₹731 crores, marking an 8.3% rise compared to the previous year.
For the fiscal year 2023-24, the company’s consolidated net profit stood at ₹99.3 crore, showing a substantial 48% increase from the preceding fiscal year. Similarly, the total revenue for the fiscal year witnessed a 4.3% growth, totaling ₹2,601 crores.
Notably, the company’s operating margin saw significant improvements, with a 190 basis points increase year-on-year, reaching 11% in Q4 FY24 compared to 9% in Q4 FY23, and a 210 basis point increase on an annual basis, resulting in a 10% margin.
Somany Ceramics Ltd, a key player in India’s decor solutions sector, specialises in manufacturing ceramic tiles, vitrified tiles, sanitary ware, and bath fittings.
The company’s shares have demonstrated steady growth, with a 7% increase over the past six months and a notable 30% increase over the last 12 months.
In terms of shareholding, the company’s promoter holds a majority stake of 55.02%, while domestic institutional investors and retail shareholders hold 23.82% and 19.85% stakes, respectively.
Notably, the company boasts a robust production capacity, with a total tiles production of 13.41 million square meters, utilizing both its own plants and joint ventures. In Q4, the capacity utilization rates stood at 89% for tiles, 39% for sanitaryware, and an impressive 99% for faucets.
Written by Omkar Chitnis
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