Somany Ceramics advanced 2.40% to Rs 430.20 after the company said its board approved modernisation cum expansion of the production line of double fast firing to produce large format wall tile, at the Kassar plant in Haryana.
The existing capacity of the plant is about 7000 sqm per day of wall tile which is fully utilised. Post modernisation, the capacity will expand to about 16,000 sqm per day. Th expansion will be completed by fourth quarter of next fiscal. Proposed Investment required for the modernisation is Rs 45 crore.At the meeting held on 17 March, the company's board also decided to make an investment the share capital of Somany Piastrelle (SPPL), a wholly owned subsidiary of the company, and/or to grant inter-corporate loan to SPPL, in one or more than one tranche with a maximum cap of Rs 90 crore in aggregate (excluding the transfer of land and structures appurtenant thereto, if any) for said transaction(s).
The proposed investment is towards setting up a greenfield project of 3.48 million square meters per annum of glazed vitrified tiles at Dhanot, Gujarat by Somany Piastrelle.
Further, the board also decided to make investment in the share capital of Sudha Somany Ceramics (SSCPL), a subsidiary of the company and/or to grant inter-corporate loan to SSCPL, in one or more than one tranche with a maximum cap of Rs 42 crore in aggregate for said transaction(s).
The proposed investment is towards the capacity expansion of 3.6 million square meters per annum of glaze vitrified tiles (GVT) by Sudha Somany Ceramics.
Meanwhile, the company's board on Wednesday declared an interim dividend of Rs 2.40 per share for the financial year 2020-21. The record date is fixed on 25 March 2021.
Somany Ceramics' consolidated net profit surged 148.3% to Rs 31.09 crore on a 12.8% rise in net sales to Rs 490.28 crore in Q3 December 2020 over Q3 December 2019.
Somany Ceramics manufactures a range of products including ceramic tile, floor tiles, polished vitrified tiles, digital tiles, wall tiles, wall claddings, sanitary ware, bathroom fittings, and tile laying solutions.
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