S H Kelkar and Company Ltd - Business Update for Q1 FY2023

S H Kelkar and Company Ltd, the largest Indian origin Fragrance and Flavours Company in India, has announced the business update for Q1 FY 2022-23.

Operational Update:

- The demand environment and offtake across the emerging and European markets remained steady during the quarter, with stable client engagements witnessed across categories. On a consolidated basis, Q1 FY 22-23 sales stood at Rs. 412 crore. On a like-to-like basis (excl. Acquisitions), revenues at constant currency grew by 7.5% YoY with negative impact on forex ~ 1.6%. Emerging market sales stood at Rs. 319 crore, registering organic growth of 9.2% on a YoY basis. On the profitability front, the Company expects to maintain margins within a steady range during the quarter, despite the volatile RM environment

- The Company has successfully integrated its recent acquisitions, namely Holland Aromatics B.V. and NuTaste Food and Drink Labs Private Limited into its business model. Both acquired entities, on a standalone basis, reported notable revenue growth during the quarter

- SHK's participation in the RFP (Request for Proposal) by a large global FMCG MNC is progressing well. In the quarter, SHK signed an agreement making it one of the few Global Fragrance and Flavour companies to be among the MNC's core supplier list. Overall, SHK remains optimistic on the significant multi-year business potential from this global tender and anticipates business to build on from this calendar year itself

- On the Balance sheet front, the Company's net debt position stood at ~Rs. 473 crore as on June 30, 2022 as against Rs. 509 crore as on March 31, 2022. The decrease in debt was primarily on account of healthy cash flow generation during the quarter. As indicated earlier, SHK anticipates a gradual reduction of net debt, going forward

Note: All figures mentioned in the business update are provisional and unaudited.

Shares of S H Kelkar and Company Limited was last trading in BSE at Rs. 137.60 as compared to the previous close of Rs. 136.15. The total number of shares traded during the day was 3195 in over 373 trades.

The stock hit an intraday high of Rs. 138.60 and intraday low of 137.00. The net turnover during the day was Rs. 438878.00.

Source : Equity Bulls

Keywords

SHKelkarandCompany INE500L01026 BusinessUpdate Q1FY2023