S H Kelkar -; Company's 9MFY22 sales records 21% yoy growth to Rs1,110cr; Stock gains 2%

10 Jan 2022 , 09:17 AM

S H Kelkar and Company Ltd (SHK), the largest Indian origin Fragrance and Flavours Company in India, has released 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 ~Rs1,110cr (Note: 1. Provisional and unaudited figures; 2. including consolidation of CFF & Nova performance) as compared to Rs919cr 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 ~Rs438cr as on December 31, 2021 (Note: 1. provisional and unaudited figure) compared to Rs347cr 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.

At around 9:17 AM, S H Kelkar & Company was trading at Rs167 per piece higher by 1.92% on the BSE.