- 08 May 2025
- ICICIdirect Research
SOMANY CERAMICS TILE VOLUMES WERE UP 3 PERCENT YOY
News: For Q4 FY25, Somany Ceramics tile volumes were up 3% YoY at 20.4 MSM with Tile revenues at ₹643.9 crore, up 1.9% YoY. The overall revenue was at ₹765.9 crore, up 4.7% YoY. EBITDA margins were subdued at 8.1%, down 270 bps YoY given the higher operating expenses. PAT was reported at ₹21.3 crore, down 30.7% YoY given the weak operating performance and subdued margins. For FY25, Tile volumes were up 2% YoY at 70.85 MSM. The overall revenue was at ₹2643 crore, up 2.6% YoY. EBITDA margins were subdued at 8.4%, down 140 bps YoY. PAT was reported at ₹60 crore, down 38% YoY.
View: The company and industry witnessed weaker domestic and export demand which created pricing pressure and lower capacity utilization resulting in weaker margins. However, the management has remained optimistic about domestic demand improving going forward as it plans to expand its product portfolio and strengthen distribution network. Given the favourable indicators, the company has maintained its guidance of high single digit growth in volumes and margins to incrementally improve by 1-1.5% from current levels.
Impact: Neutral