Shares of Somany Ceramics rallied over 14 percent to hit its 52-week high on Thursday after the company turned profitable in the March quarter (Q4FY21).
Somany Ceramics shares rallied over 14 percent to hit a 52-week high of Rs 558.95 following strong March quarter numbers. The company turned the corner during the quarter, reporting a consolidated net profit of Rs 31 crore against a loss of Rs 9.32 crore same period last year.
The company’s EBITDA stood at Rs 90 crore, up 5.4 times YoY, driven by operating leverage and lower other costs. EBITDA margins in Q4 were at 15.8 percent, up 12 percentage points YoY.
Revenue was flat at Rs 1,663 crore as the tiles business was impacted by the construction activity and the supply chain constraints in FY21.
“While the recovery has been on a benign base and has some element of pent-up demand and reduced costs benefits, the balance sheet improvement remains the key takeaway. Somany’s working capital management and net debt reduction (down from Rs 444 crore in FY20 to Rs 173 crore in FY21) have been the key positives. The management commentary on growth will be key,” ICICI Securities said in a note.
At 12:00 pm, the shares of Somany Ceramics were trading 11.74 percent higher at Rs 546.95 apiece on the BSE.