Q1 2026 Somany Ceramics Ltd Earnings Call Transcript
Key Points
- Somany Ceramics Ltd (BOM:531548) reported a 4% growth in sales and a 3% growth in volume, with an additional potential 1.2% growth from sales in Nepal.
- Gross margin increased by 3.2% quarter on quarter, indicating some improvement in profitability.
- The company has concluded a joint venture with Durabuild, focusing on waterproofing products, which is expected to be a high-margin business.
- The sanitaryware segment is back to 100% capacity after a major kiln shutdown, which is expected to improve performance in the upcoming quarters.
- The company added approximately 65 new dealers in the quarter, indicating an expansion in distribution and market reach.
- Demand was muted due to lower sales in India and pressure on exports, with a decline in export revenue expected.
- Operating margins were impacted by reduced capacity utilization, with standalone capacity utilization at 72% and consolidated capacity utilization dropping from 81% to 77%.
- The Max plant, focused on high-end tiles, was underutilized at 51-52% capacity, leading to losses.
- The depreciation impact increased by approximately INR5 crore due to accelerated depreciation of some assets.
- Working capital increased marginally by four days, indicating potential inefficiencies in cash flow management.
Ladies and gentlemen, good day and welcome to the Somany Ceramics Limited's Q1 FY26 earnings conference call. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Sagnik Skar from SKP Securities Limited. Thank you, and over to you, sir.
Thank you. Good morning, ladies and gentlemen. It's my pleasure to welcome you all on behalf of Somany Ceramics Limited and SKP Securities to this Q1 FY26 financial results conference call.
We have with us Mr. Abhishek Somany, MD and CEO; Mr. Sailesh Raj Kedawat, CFO; and Mr. Kumar Sunit, Head Strategy and IR. We'll have the opening remarks from Mr. Somany, followed by the Q&A session.
Thank you, and over to you, Abhishek-ji.
Yeah, thank you so much. Good morning, ladies and gentlemen. Welcome to the Q1 FY26 earnings call. And you have all seen the
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
