Q3 2026 Somany Ceramics Ltd Earnings Call Transcript
Key Points
- Domestic demand showed gradual improvement in Q3, with increased offtake from the building sector.
- Sales growth was recorded at 6% in Q3, with gross margins improving by 2.2% from the last quarter.
- EBITDA grew by 16%, with a percentage improvement of 80 basis points, reaching 9.2%.
- The company's debt has been reduced from INR288 crore to INR231 crore, showing effective debt management.
- The company added approximately 170 new dealers in 9 months, increasing the total to about 3,050, and showroom count rose to 530.
- Capacity utilization decreased year-over-year from 85% to 80%, although there was a quarter-on-quarter increase.
- The joint venture loss, primarily from Somany Max, continues due to lower capacity utilization.
- Depreciation impact increased by approximately INR5 crore in Q3 compared to the previous year.
- Working capital increased marginally by 3 days compared to FY25.
- The company is facing challenges in stabilizing the Max plant, with losses expected to continue into FY27.
Good evening, ladies and gentlemen. Welcome to Somany Ceramics Limited's Q3 FY26 Earnings Conference Call. (Operator Instructions) Please note that this conference is being recorded. I now hand the conference over to Mr. Navin Agarwal, Head, Institutional Equities at SKP Securities Limited.
Thank you, and over to you, sir.
Good afternoon, ladies and gentlemen. It's my pleasure to welcome you on behalf of Somany Ceramics Limited and SKP Securities to this financial results conference call. We have with us Mr. Abhishek Somany, MD and CEO; Mr. Shrivatsa Somany, Head, Bathware; Mr. Ameya Somany, DGM; and Mr. Sailesh Raj Kedawat, CFO.
We'll have the opening remarks from Mr. Somany, followed by a Q&A session. Thank you, and over to you, Abhishekji.
Thank you. Good evening, ladies and gentlemen. Welcome to the earnings call of Somany Ceramics for Q3
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