S H Kelkar and Company Ltd - Business Update for Q2FY25

S H Kelkar and Company Ltd (SHK), the largest Indian origin Fragrance and Flavours Company in India, would like to share the following business update for Q2 FY2025.

Operational Update:

- During the quarter, business sentiment remained positive, with healthy demand across various segments. The Company's performance was further strengthened by the recovery of the order backlog. The core European segment also performed well, achieving double-digit revenue growth despite a generally subdued demand environment in the region. On a consolidated basis, H1 FY2025 revenues reached ₹ 1,000 crore, reflecting a YoY growth of 17.4% (provisional and unaudited)

- The shift in the product mix during the quarter led to a moderation in gross margins on a sequential basis, though margins remain better on a YoY basis. Additionally, the Company is facing availability issues in a few strategic raw materials, which is expected to result in some price increases in the coming quarters, despite overall supply conditions remaining stable

- On the balance sheet front, net debt rose to ₹596 crore as of September 30, 2024 (provisional and unaudited), primarily due to continued inventory replenishment. The Company is generating strong cash flows, which should help strengthen the balance sheet going forward

- The Company has submitted its claim to the insurance company and expects a partial payment in the coming quarter to support reduction in debt and refurbishment of the Vashivali plant

Update on Promoter Holding:

- During the quarter, the promoter group sold 45.97 lakh shares, representing 3.32% of the total fully paid-up equity shares of SHK. After the sale, the promoter group's holding stands at 55.63% as of September 30, 2024

- The sale was made to meet certain personal requirements, and the promoter group does not anticipate any further sale of shares in the near future

Note: All figures mentioned in the business update are provisional and unaudited. Figures exclude NuTaste Food and Drink Labs, in which the Company has divested part of its stake and now holds 40% only.

Shares of S H Kelkar and Company Limited was last trading in BSE at Rs. 301.65 as compared to the previous close of Rs. 287.40. The total number of shares traded during the day was 175694 in over 4818 trades.

The stock hit an intraday high of Rs. 312.00 and intraday low of 281.00. The net turnover during the day was Rs. 53444627.00.

Source : Equity Bulls

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SHKelkarandCompany INE500L01026 BusinessUpdate Q2FY25