Somany Ceramics Jumps Over 8% After Q2 Profit More Than Doubles

The company's Q2 consolidated net profit rose 152.13% YoY to Rs 29.5 crore, beating Bloomberg estimate of Rs Rs 24.7 crore.

<div class="paragraphs"><p>Somany Ceramics Ltd. (Source: Company website)</p></div>
Somany Ceramics Ltd. (Source: Company website)

Shares of Somany Ceramics Ltd. surged over 8% to their highest in over two weeks on Thursday after its September-quarter profit more than doubled, beating analysts' estimates.

The company's consolidated net profit rose 152.13% year-on-year to Rs 29.5 crore in the quarter ended September, according to an exchange filing. This beat the analyst estimates pooled by Bloomberg, which stood at Rs 24.7 crore.

The company reported 6% volume growth in Q2, reaching nearly 17 million square meters. "This is a reasonable performance given the tough market conditions that prevailed on account of weaker domestic demand," according to its investor presentation.

Somany Ceramics Ltd. expects a better volume performance in the second half of the year, on the backdrop of an improving domestic demand outlook besides the surge in exports from India.

Somany Ceramics Q2 FY24 Highlights (Consolidated, YoY)

  • Revenue up 6% to Rs 655.2 crore. (Bloomberg estimate: Rs 646.2 crore).

  • Ebitda up 52% to Rs 64.1 crore. (Bloomberg estimate: Rs 57.2 crore).

  • Margin up 295 basis points to 9.78% vs 6.83% (Bloomberg estimate: 8.9%).

  • Net profit up 152.13% to Rs 29.5 crore. (Bloomberg estimate: Rs 24.7 crore).

Somany Ceramics Jumps Over 8% After Q2 Profit More Than Doubles

Shares of the company rose as much as 8.67%, the highest since Oct. 23, before paring gains to trade 3.04% higher at 1:02 p.m. This compares to a 0.03% decline in the NSE Nifty 50.

The stock has risen 45% on a year-to-date basis. Total traded volume so far in the day stood at 8.1 times its 30-day average. The relative strength index was at 54.

Of the 22 analysts tracking the company, 19 maintain a 'buy' rating and three recommend a 'hold', according to Bloomberg data. The average 12-month consensus price target implies an upside of 16.4%.