Somany Ceramics (531548) Q4 24/25 earnings summary

Executive summary

• Sales grew by 5% in Q4 FY25, maintaining topline momentum despite weak demand and a 30% drop in industry exports year-over-year.

• Operating margins held at 8.2% in Q4, supported by operational efficiency initiatives, but gross margins declined by 2.8% due to higher discounting and lower capacity utilization.

• The MAX plant was the main source of consolidated losses, while all other plants remained profitable.

• Bathware segment showed strong growth, with sales up 18% in Q4 and 11% for the year; sanitaryware plant ran at 96% utilization.

• Board approved investment up to ₹1,050 lakhs for a 52% stake in Dura Build Care Private Limited, expanding into construction chemicals.

Financial highlights

• Consolidated Q4 FY25 sales rose 4.7% year-over-year to ₹766 crore; full-year sales up 2.6% to ₹2,643 crore.

• Q4 FY25 consolidated EBITDA declined 21.4% year-over-year to ₹62 crore; EBITDA margin compressed to 8.2%.

• PAT and PBT declined, mainly due to losses at the MAX plant; Q4 FY25 consolidated PAT fell 44.8% year-over-year to ₹19 crore.

• Total debt reduced to INR 188 crore from INR 233 crore year-over-year; consolidated net debt reduced to ₹21 crore as of March 2025.

• Working capital days increased by five, mainly due to higher trade receivables, but consolidated working capital days decreased to 191 as of March 2025.

Outlook and guidance

• Management guides for high single-digit to low double-digit sales growth in FY26, with EBITDA margin expected to improve by 1–1.5 percentage points if capacity utilization increases.

• Brand spend to rise to 3.5% of sales in FY26.

• Channel sales expected to decrease to 75% as project and government sales rise to 25%.

• Expansion into construction chemicals through Dura Build Care Private Limited is expected to enhance production capacity and diversify revenue streams.

• Industry growth anticipated, supported by private real estate consumption and government initiatives in housing, urbanisation, and sanitation.