Personal Products company S H Kelkar & Company declares Q4FY22 result: Revenues from operations at Rs. 1,564.2 cr, higher by 18% Gross margins at 41% Cash Profit at Rs. 176.6 cr Revenues from operations stood at Rs. 450.6 crore as against Rs. 397.0 crore, higher by 13.5% EBITDA stood at Rs. 68.5 crore as against Rs. 75.3 crore EBITDA Margins at 14.9% as against 18.6% Cash profit stood at Rs. 48.7 crore as against Rs. 58.3 crore Reported PAT at Rs. 12.5 crore as against Rs. 40.1 crore On an adjusted basis, PAT stood at Rs. 28.6 crore in Q4 FY22 Revenues from operations stood at Rs. 1,564.2 crore as against Rs. 1,322.0 crore, higher by 18.3% EBITDA at Rs. 232.1 crore as against Rs. 259.4 crore EBITDA margin stood at 14.7% vs 19.3% Cash profit stood at Rs. 176.6 crore as against Rs. 197.3 crore Reported PAT stood at Rs. 148.5 crore as against Rs. 144.7 crore On an adjusted basis, PAT stood at Rs. 104.8 crore in FY22 Commenting on the performance, Mr. Kedar Vaze, Whole Time Director and Group CEO at SH Kelkar and Company said, “We have ended the fiscal year on a steady note, despite macro-challenges such as Covid-19 led disruptions and inflationary raw material environment. Although FMCG consumption and offtake remained stable, RM pricing pressures restricted volume growth in our core fragrance business. In the European markets, we saw improved demand and offtake, which translated to healthy double-digit growth for our acquired businesses during the year. During the year, we have undertaken calibrated price hikes in collaboration with our customers. This has helped us mitigate inflationary pressures to a large extent leading to limited impact on gross margins. Going forward, this, along with our inventory management strategy should help us maintain steady profitability margins. SHK is continuously witnessing strong client wins across emerging and European markets. Our recent participation in a global RFP by a large global FMCG MNC is also progressing well. We are confident about our capabilities built over decades and remain optimistic about the multi-year business potential from this global tender In the last few quarters, despite adverse market conditions and inflationary environment, we have undertaken several measures to enhance our global market presence, augment our niche offerings and expand our customer segments. As we look ahead, our growth initiatives along with our healthy client engagements and our participation in global RFPs will help support accelerated growth in the medium to longer term” Result PDF
Conference Call with S H Kelkar & Company Management and Analysts on Q3FY22 Performance and Outlook. Listen to the full earnings transcript.
Personal Products firm S H Kelkar & Company declares Q3FY22 result: Q3 FY2022 performance overview compared with Q3 FY2021: Revenues from operations at Rs. 1,109.8 cr EBITDA at Rs. 163.7 cr Revenues from operations stood at Rs. 396.6 crore as against Rs. 375.4 crore, higher by 5.6% EBITDA stood at Rs. 63.8 crore as against Rs. 71.8 crore EBITDA margins remained stable on a sequential basis at 15.8% PAT stood at Rs. 32.37 crore as against Rs. 35.39 crore 9M FY22 performance overview compared with 9M FY21: Revenues from operations stood at Rs. 1,109.8 crore as against Rs. 918.6 crore Emerging markets’ revenues grew by 7.1% YoY EBITDA at Rs. 163.7 crore as against Rs. 184.1 crore EBITDA margin stood at 14.6% Reported PAT stood at Rs. 136.07 crore as against Rs. 104.57 crore, higher by 30.1% On an adjusted basis**, PAT stood at Rs. 77.76 crore Commenting on the performance, Mr. Kedar Vaze, Whole Time Director and Group CEO at SH Kelkar and Company said, “We have reported a steady performance in the quarter and nine months period. In our core domestic fragrance business, we saw improved demand momentum. Our CFF and Nova segment also saw healthy offtake during the quarter. Although client wins across our geographies continued to remain healthy, inflationary trends impacted volume growth in international markets. In a strategic development during the quarter, we are happy to share that we have acquired 62% of stake in Holland Aromatics, a leading fragrance company in the Netherlands. The acquisition, while being complementary to the CFF business, supports our strategy to deepen presence in the European fragrance market. Our proven expertise in the F&F; industry along with the blend of capabilities from CFF, Nova, and Holland Aromatics will strengthen our endeavor to tap upon diverse global customer segments. In-sync with this strategy, we have been actively participating in large MNC tender processes. This is one of the key focus areas for us, which we believe, will drive the next leg of growth. The Board, during the quarter, has also approved the acquisition of 100% stake in NuTaste Food and Drink Labs. The acquisition accelerates the momentum of our flavour business and will enable us to expand further into the high-potential flavour categories such as syrups, sauces, seasonings, fruit preps and other such premium grade products. Overall, both the acquisitions are value-accretive and highly synergistic in nature. As we look ahead, a combination of our strategic business initiatives, healthy client engagements and our participation in global RFPs will result in a positive growth momentum for us. We look forward to delivering a strong and sustainable growth in the medium to longer term” Result PDF
Financial Highlights: H1 FY22 Revenues from operations stood at Rs. 713.2 crore On a like-to-like basis, revenues grew by 15% YoY Emerging markets sales grew by 9% YoY in H1 FY22 H1 FY22 EBITDA stood at Rs. 99.8 crore, with margins at 13.9% Gross margins in H1 FY22 stood at 41.5%. H1 FY22 Reported PAT stood at Rs. 103.5 crore In Q2 FY22, there was a one-time exceptional loss of Rs. 6.2 crore Commenting on the performance, Mr. Kedar Vaze, Whole Time Director & CEO at SH Kelkar and Company Ltd. said: “We have reported a steady performance in the first half of the fiscal. Our European business registered healthy growth on the back of higher consumption and demand trends during the period. On a consolidated basis, our revenue from operations in H1 grew by 31% on a YoY basis and on a like to like basis, it grew by 15% YoY. H1 FY2021 results included consolidation of CFF for only 2 months, i.e. August and September 2020. So, on a like to like basis, CFF’s core fragrance business grew by 39% in H1 and on a 2-year CAGR it was 10%. In Q2, we have reported muted performance on the back of a challenging macro-environment witnessed in the emerging markets and higher base in the previous quarter last year. Emerging markets sales grew by 9% during the first half of the year. We continued to witness cost pressures on account of global inflation in raw materials. However, our inventory policy, better product mix, and our ability to pass on price increases enabled us to minimize the impact on margins. In order to efficiently mitigate cost pressures and to normalize our operating margins, we are working with our customers to undertake further price hikes in the future. In one of the key developments during the quarter, we are happy to share that we won an order in the Home Care segment from a large global MNC player in the domestic FMCG market. This strategic win will enhance our competitive advantage in the domestic markets and will support our endeavour to build presence in the high potential global MNC space over the longer term. The Board at the meeting today also approved the buyback of SHK’s fully paid up equity shares. It signifies our confidence on both the balance sheet and our future cash flows over the medium to long term. From an overall demand standpoint, we are encouraged with healthy client engagements and enquiries across the emerging and European markets. In a normalized demand environment, we are confident that our emphasis on growth should enable us to report healthy performance going forward” Result PDF