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for Industry - Furniture-Furnishing
In Q1FY20, Sheela foam Ltd. reported sales revenues of Rs 514 cr (up 2% YoY & down 4% QoQ), EBIDTA of Rs 62 cr grew stongly by 23% YoY & 12% QoQ. EBIDTA margin at 12.1 % was back to normal after being subdued in last two quarter due to one off marketing expenses.
Sheela Foam's (SFL) 4QFY19 profit came in 10% below our expectations with revenues remaining unchanged yoy and EBITDA showing moderate growth of 6% yoy. We maintain Hold as demand recovery hopes in 2HFY20 have been priced in. We see SFL's sales volume growth to remain moderate in 1HFY20 as customers shift to lower-priced mattresses. Mass-market products contribute just 20% to SFL's revenue. In...