Somany Ceramics Ltd. share price target

In Q3FY25, Somany Ceramics (SOMC) reported consol. revenue growth of 5.3% YoY with tile volume growing 4.5% YoY (5-year CAGR of 5.1%) while tile realisation declined 0.9% YoY (flat QoQ).

Operating profit broadly in line in Q3; SOMC EBITDA margin was relatively stable in Q3 due to high GVT sales and Max plant ramp-up

Topline broadly in line; but EBITDA missed on margin contraction due to low absorption of fixed-cost overhead

Misses our revenue/EBITDA estimate by 2%/8% mainly due to lower-than-expected tiles volume

In Q1FY25, Somany Ceramics (SOMC) reported consol. revenue decline of 1.4% YoY, as tiles volume declined 0.9% YoY (5-year CAGR of 5.5%). Consol. EBITDA margin decreased 16bps YoY/231bps QoQ to 8.5%.

SIEM: Robust quarter, fresh capex announced. DIXON: Backward integration to fuel growth; maintain BUY. VSTT: Tepid performance; no major stress in the medium term. SOMC: Strong show in a challenging environment

In Q4FY24, Somany Ceramics (SOMC) reported consolidated revenue growth of 8.6% YoY driven by tile volume growth of 7.3% YoY (+19.9% QoQ; 3-year CAGR of 3.8%), but tile realisation declined 2.3% YoY (-1.2% QoQ).

Q3 EBITDA miss of 7% on tepid demand environment and rise in competitive intensity from Morbi players

Somany Ceramics (SOMC) reported Q1FY24 consolidated revenue growth of 4.9% YoY driven by tile vol growth of 8.1% YoY (4-year CAGR of 6.7%), while tile realisation declined 2.2 % YoY (flat QoQ). Consol EBITDA margin increased 59bps YoY (-35bps QoQ) to 8.6% primarily due to lower RM costs (down 97bps YoY, including power and fuel cost), resulting in EBITDA growth of 12.6% YoY while APAT declined 4.4% YoY (due to higher interest cost).

Somany Ceramics (SOMC) reported in line Q4FY23 consolidated revenue growth of 10.1% YoY (4-year CAGR of 7.0%) driven by tile volume growth of 9.2% YoY (4-year CAGR of 3.4%), while tile realisation remained flat YoY (-1.4% QoQ).

Somany Ceramics (SOMC) reported in-line Q3FY23 consolidated revenue growth of 6% YoY (3-year CAGR of 12.6%) with tile volume growth of 3.7% YoY (3-year CAGR of 6.7%) and tile realisation growth of 2.2% YoY (-1.4% QoQ). Consolidated EBITDA margin contracted 449bps YoY (-32bps QoQ) to 6.5% due to higher raw material cost (gross margin shrinking 326bps/206bps YoY/QoQ) resulting in EBITDA/APAT decline of 37.2%/62.6% YoY.