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).