Somany Home Innovation posts Rs 104 cr net profit in June qtr

Mumbai: Somany Home Innovation, the consumer appliances and building products arm of the sanitary-ware major Hindware group, on Friday reported a net profit of Rs 103.63 crore in the June quarter as against a net loss of Rs 24.5 crore a year ago when it was hit by the nationwide lockdowns. The Gurugram-based company said that revenue stood at Rs 342.3 crore, a growth of 84.7 per cent on-year, after the lockdowns were lifted from early June.

The building products business rebounded registering a revenue growth of 98.1 per cent on-year to Rs 265.3 crore, while consumer appliances sales grew 54.6 per cent to Rs 67.6 crore.

The revival in real estate demand and growing interest in home improvement products, along with better product mix, and continuing penetration into small towns contributed to the growth of both business segments, chairman Sandip Somany said.

The quarter was marked by strong sales in the air cooler segment, but consequent to the second wave, the demand and thus revenue was muted. The building products was also impacted, but from June the business saw a strong recovery, he added.

Commenting on the performance, Somany said "despite the challenges from the pandemic we were was able to overcome hurdles and made a good recovery once the lockdowns were lifted. Consumer appliances business sales was driven by high demand for air coolers, while the building products segment too saw good traction in June, after muted sales in April and the first half of May".

Its consumer appliances business consists of a selection of household appliances such as kitchen appliances -- kitchen chimneys, built-in-hobs, cooktops, built-in ovens, dishwashers, sinks under the brand Hindware Kitchen Ensemble.

The company stock closed almost flat with a positive bias at Rs 380 on the BSE, whose benchmark Sensex rallied more than 1 per cent or nearly 600 points to close over the 55,000 market for the first time.