Revenue run rate to increase going into 4th quarter: Somany

Somany Ceramics on Thursday reported a revenue gain of 11 percent on a year-on-year (YoY) basis for the third quarter of this fiscal.

In an interview with CNBC-TV18, Abhishek Somany, Joint MD of the company said that he expects the whole year to revenue growth rate to be  better than the current 9 months of FY16.Below is the transcript of Abhishek Somany’s interview with CNBC-TV18's Mangalam Maloo and Reema Tendulkar. Mangalam: First if you could run us through your numbers. The topline growth, the EBITDA and at the same time your margins and your net profit as well? A: It has been a fairly decent quarter although sales have been under pressure. So, we have grown only about 11 percent of net in this quarter and about 12.5 percent as far as nine percent is concerned. So, clearly sales has been a little bit of a pressure looking at the building material sector generally under pressure but having said that the margins have substantially improved for us and it will keep improving in future. Mangalam: Could you give us the margins? A: Yes, we have done approximately 25 percent increase in Profit before Tax (PBT) and 27 percent increase as far as Profit after Tax (PAT) is concerned. Reema: And what about the EBITDA margins? A: We don't look at EBITDA clearly because we are generally about 60 percent outsourced. So, there is no interest and depreciation. So, we generally look at only PBT margin expansions. Mangalam: What has been the volume growth that has been in this quarter? A: We have grown at 11 percent out of which the volume has played significant role. About 8.5 percent has been the volume growth and the balance has been the value growth of the 11 percent.