Stock Report

S H Kelkar and Company Ltd - Q3FY22 Business Update

Posted On : 2022-01-08 08:46:32( TIMEZONE : IST )

S H Kelkar and Company Ltd (SHK), the largest Indian origin Fragrance and Flavours Company in India, has announced the business update for Q3 & 9M FY 2021-22.

Operational Update:

SHK witnessed recovery of demand in both, discretionary and non - discretionary items in the emerging markets during the period under review. However, overall inflation has moderated volume growth with contraction in consumer wallet share. In the European markets, the Company saw improved demand during the quarter
SHK's focus on customer engagement is yielding result with the Company consistently winning from existing and new customers across emerging and European markets. The Company is also actively participating in large MNC tender processes, which is the next big milestone in its growth journey to become a notable player in the global F&F industry
On a consolidated basis, sales for Q3 FY 21-22 improved by 5.5% on a like-to-like basis. In 9M FY 2021-22, sales stood at ~Rs.1,110 crore (Note: 1. Provisional and unaudited figures; 2. including consolidation of CFF & Nova performance) as compared to Rs. 919 crore in 9M FY 2020-21, higher by 21% YoY. Emerging markets sales grew by 7.1% during the nine months period. While the raw material environment was challenging, SHK expects margins within a steady range during the quarter
On the Balance sheet front, the Company's net debt position stood at ~Rs. 438 crore as on December 31, 2021 (Note: 1. provisional and unaudited figure) compared to Rs. 347 Cr as on September 30, 2021
Further to the approval of the Board of Directors on the acquisition of 100% stake in NuTaste Food and Drink Labs Pvt. Ltd (NuTaste) through its wholly owned subsidiary Keva Flavours, the Company has now executed the share purchase agreement in this regard
On the macro-environment front, there are concerns related to the third wave of COVID-19 in India and certain international markets. The Company continues to undertake appropriate measures to ensure continuity of operations and safety of its people

Shares of S H Kelkar and Company Limited was last trading in BSE at Rs. 163.85 as compared to the previous close of Rs. 169.75. The total number of shares traded during the day was 29792 in over 1171 trades.

The stock hit an intraday high of Rs. 171.25 and intraday low of 161.40. The net turnover during the day was Rs. 4928537.00.