Somany Home Innovation Ltd. (SHIL), the Consumer Appliances and Building Products Company delivers 85%
Somany Home Innovation Ltd. (SHIL), the Consumer Appliances and Building Products Company delivers 85% revenue growth Y-o-Y in Q1 FY22
Gurugram –12th August 2021: Somany Home Innovation Ltd (SHIL), the Consumer Appliances and Building Products Company; today announced its financial results for the quarter ended June 30th, 2021.
Financial Performance Highlights: Q1 FY2022
o Revenue from operations of ₹342.3 crore, growth of 84.7% on Y-o-Y basis
o PAT of ₹103.63 crore from loss of ₹24.5 crore in the same quarter last year
Q1 FY2022 Results Update
The financial performance of SHIL has been good given the intensity of the second wave and its higher severity on human life compared to last year. Revenue from operations for Q1 FY22 increased significantly compared to Q1 FY21. The Building Products business witnessed rebound on the back of the economy reopening post the lockdown. The segment registered a revenue growth of 98.1% Y-o-Y, highlighting the continuing trend of high performance. Y-o-Y revenue growth in Q1 of FY22 for the Consumer Appliances business was also a strong 54.6%. The revival in real estate demand and the growing interest in home improvement products, in conjunction with better product mix, and continuous penetration in Tier 2 and 3 cities contributed both business segments growth.
Sequentially, revenue was lower owing primarily to the impact of the lockdown and muted performance of the Consumer Appliances business. Q1 is a quarter marked by strong sales in the Air cooler segment, but consequent to the second wave, the demand was muted, and revenue was unable to pick up. The Building Products was also impacted, but starting from June, the Building Products business witnessed a strong recovery.
During Q1FY22, SHIL launched numerous new products across its businesses, geared towards easing consumers’ lives. As a testimony to the Company’s innovation and design-led approach, touchless faucets are consistently gaining market share since their launch in FY21 and SHIL’s wide range of IoT enabled products like water heaters, water purifiers, etc. are gaining significant traction as well.
o Building Products Business
− Revenue from operations improved by 98.1% Y-o-Y to ₹265.3 crore on the back of a strong recovery in the month of June
o Consumer Appliances Business
− Revenue from operations increased by 54.6% Y-o-Y to ₹67.6 crore despite the tough conditions during the quarter
Commenting on the Company’s performance, Mr. Sandip Somany, Chairman, Somany Home Innovation Limited, said, “Q1FY22 was a challenging quarter due to the second wave of the COVID-19 pandemic and the resulting lockdowns in various states of the country. However, SHIL was able to overcome these hurdles and made a good recovery once the lockdowns were lifted. “
He further added, “Sales of the Consumer Appliances business which is driven by high demand for air coolers during Q1, which comprises the peak summer months, suffered due to damaged consumer sentiment and lockdown. However, pent-up demand in the second half helped us grow this business over last year’s Q1. The Building Products segment too, after muted sales in April and the first half of May witnessed a heartening revival in the second half. TRUFLO, our plastic pipes and fittings business has increasingly grown at a higher rate than the industry. SHIL’s strong recovery and resumption of its robust growth trajectory soon after the lockdown was lifted, has considerably enhanced our confidence and belief in our business model and strategy.”
About Us:
Somany Home Innovation Ltd (SHIL) is the fastest growing player in Consumer Appliances and the leader in the Building Product segment with 3 distinct distribution channels to market. SHIL is focused on servicing end-consumers and is involved in branding, marketing, sales & distribution, and service of various product categories.
The 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 and are leaders in numerous categories they operate in. The brand Moonbow by Hindware & Hindware houses water purifiers and air coolers and ceiling fans are housed under the brand Hindware Snowcrest. SHIL has a Joint Venture with Groupe Atlantic, the world leader in heating solutions where we have formed a subsidiary Hintastica Private Limited (HPL) to further tap the opportunities in fast growing water heater segment and electrical heating segment in India and the SAARC region. SHIL also has a strategic marketing tie-up with the Italian company, Formenti & Giovenzana in the kitchen and furniture fittings segment. The retail business in furniture, home decor, and furnishings is under the brand Evok by Hindware.
SHIL through its wholly owned subsidiary, Brilloca Limited has a versatile range of best-in-class sanitaryware and faucets products with five brands – Queo, Alchymi, Hindware Italian Collection, Hindware and Benelave catering to a wide pricing spectrum, from luxury and super-premium to mass. The plastic pipes and fittings business under the brand ‘Truflo by Hindware’ is one of the fastest growing brands in this segment in the country. Recently, ‘Truflo by Hindware’ also forayed into column pipes and overhead water storage tanks. Under the brand Neom, Brilloca has a presence in the super-premium and premium tiles market.
