India · Delayed Price · Currency is INR Somany Ceramics Earnings Call Transcripts
Fiscal Year 2027
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Q1 FY27 delivered strong value growth and a sharp EBITDA margin improvement, driven by price hikes, higher capacity utilization, and operational efficiencies. Management remains confident in sustaining double-digit margins and mid-single-digit volume growth, with significant capacity expansion underway.
Fiscal Year 2026
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Sales and EBITDA improved year-over-year, with strong working capital management and breakeven at the Somany Max plant. Guidance calls for higher EBITDA margins and double-digit growth in sanitaryware and adhesives, but risks remain from volatile gas prices and weak demand in some regions.
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Q3 saw 6% sales growth, improved gross and EBITDA margins, and a doubling of PAT year-over-year. Capacity utilization and segment performance improved, while debt was reduced and guidance for margin expansion and lower Max plant losses was reiterated.
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Q2 revenue grew 3.6% year-over-year despite severe weather and a major plant outage, which impacted margins. Capacity utilization is set to improve, with double-digit EBITDA margins targeted in coming quarters. Product mix is shifting toward higher-margin GVT and bathware segments.
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Q1 FY26 saw muted demand and export pressure, but sales grew 4% YoY and gross margin rose QoQ. Capacity utilization and profitability are expected to improve in H2, with new initiatives like the Dura Build JV and Max plant investments supporting future growth.
Fiscal Year 2025
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Sales and volumes grew modestly in Q4 FY25, but margins were pressured by weak demand, discounting, and lower capacity utilization. The MAX plant remains the main loss driver, while bathware showed strong growth. Management guides for improved margins and higher project sales in FY26.
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Sales grew 4.5% in Q3 FY25 with stable margins and improved gross margin, despite weak industry demand. Strategic exits from unprofitable JVs and a new construction chemical acquisition aim to boost profitability. Capacity utilization and builder orders are set to drive future growth.
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Q2 and H1 were muted due to weak demand, lower exports, and heavy rains, but product mix improvements and bathware growth helped offset pressures. Guidance for FY25 is 5%-6.5% growth with EBITDA margin improvement, barring gas price shocks.
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Q1 FY25 saw flat sales and muted demand, but margins and cash flow were maintained through cost control and pricing discipline. The company targets double-digit growth for FY25, expects margin improvement, and sees robust demand from H2 as real estate and exports recover.