Double-digit volume growth possible in FY18: Somany Ceramics

Somany Ceramics reported a poor set of Q1 numbers. However, the stock recovered post their Q1 results. In an interview to CNBC-TV18, Abhishek Somany, MD of Somany Ceramics gave a sense of what the outlook is going forward.

Somany said 18 percent decline in Q1 growth was on account of volumes and value.

He further said that Q1 of FY18 results impacted by goods and services tax (GST) de-stocking and Systems, Applications & Products (SAP) implementation.

However, he believes that double-digit volume growth is possible in FY18.

He expects margins to improve in the second half of the year.

He further added that margin improvement will be driven by higher contribution from value addition products and sanitaryware plant.

He is targeting vitrified tiles contribution to move to 60 percent.

Targeting value added products to go to 55 percent to 60 percent, said Somany.