The board of directors of Somany Ceramics approved the investment upto Rs 62.5 crore, which would be upto 50% of the project cost of approximately Rs 125 crore, in a company based in Nepal, by way of subscription of share capital and/or unsecured loan and/or any suitable instruments, for establishing a manufacturing facility in Nepal on joint venture basis between the company and Murarka Group, Nepal, the company informed in a BSE filing.
The joint venture will operate and manage a tile manufacturing facility with annual capacity of around 3.5 million square meter in Nepal.
Somany Ceramics and Murarka Group will subscribe to the shares in joint venture in an agreed proportion. However,
the company’s subscription will not exceed 50% in the joint venture, it said in the regulatory filing.
The company had reported a dip of 66.42 per cent in its consolidated net profit during the quarter ended December 31, 2022. Its profit after tax (PAT) stood at Rs 11.47 crore in Q3 FY23 as against Rs 34.16 crore it registered in the corresponding quarter of the previous fiscal. Its consolidated total income stood at Rs 626.51 crore in Q3 FY23, a growth of 6.27 per cent from Rs 589.52 crore it recorded in the similar quarter last year.