Somany Ceramics shares skyrocket 20% after impressive Q4 earnings and dividend news

The premium tiles manufacturer reported a consolidated net profit of ₹33.88 crore for the quarter ending on March 31, 2024. This marked a swift uptick of 39% on a year-on-year (YoY) basis from ₹24.4 crore in the same period last year. The profits were achieved despite challenging factors like reduced exports and subdued domestic demand.

Somany Ceramics’ consolidated total income witnessed a growth of 8.25% to ₹739.11 crore in the final quarter of the financial year 2024 compared to ₹682.77 crore in the year-ago period.

Even after observing a sluggish demand for tiles in the March 2024 quarter, Somany Ceramics’ tile volume climbed 7% on a YoY basis and 20% sequentially. The slow demand was led by the extended slowdown in home improvement activity as well as an increase in the intensity of competition.

Somany Ceramics’ management has appeared optimistic and expects a recovery in the second half of the current financial year 2025, driven by aggressive distribution expansion across the smaller cities of India and demand tailwinds in the real estate sector.

The company has also projected a double-digit rise in its sanitaryware and faucet business.

Further, Somany Ceramics’ Board of Directors has recommended a final dividend at the rate of 150%, that is at ₹3 per equity share of face value of ₹2 each for the financial year 2024, subject to approval of its shareholders at the company’s 56th Annual General Meeting (AGM).

The stock has gained over 21% over the last month, and has given very muted returns of almost 1% to its shareholders so far this year. Over a year’s time, Somany Ceramics’ shares have jumped more than 30%.

Somany Ceramics shares closed 15.60% higher at ₹718 apiece on the NSE.