SH Kelkar logs Rs449 crore sales in Q4FY22; stock gains ~2%

8 Apr 2022 , 01:51 PM

S H Kelkar and Company Ltd. (SHK), the largest Indian origin Fragrance and Flavours Company in India, shared the business update for the quarter and fiscal year ended March 2022.

The spread of Omicron in the domestic markets at the beginning of the quarter had an impact on the company’s demand, especially in January 2022. FMCG consumption and offtake also held back during the quarter as a result of inflationary pressures. SHK saw improved demand and offtake in the European markets, which recorded healthy double-digit growth for acquired businesses during the quarter.

During the current financial year, sales stood at Rs1,559 crore (including consolidation of Holland Aromatics & Nutaste’s sales: ~Rs30 crore). Emerging market sales during the year stood at Rs1,201 crore, registering a growth of 5.4% YoY.

On a consolidated basis, Q4FY22 sales jumped to Rs449 crore (including the consolidation of Holland Aromatics & Nutaste’s sales of nearly Rs30 crore). On a like-to-like basis, revenues logged growth of 5.5% YoY. Emerging market sales stood at Rs332 crore on a higher base in the corresponding period last year.

On the profitability front, SHK has been undertaking calibrated price hikes in collaboration with its customers to tackle the impact of inflationary pressures witnessed during the quarter.

On the Balance sheet front, the Company’s net debt position stood at Rs512 crore as of March 31, 2022. The increase in debt was primarily on account of the recent acquisition of Holland Aromatics & Nutaste.

SHK is currently trading at Rs154.25 up by Rs3.65 or 2.42% from its previous closing of Rs150.60 on the BSE. It touched intraday high and low of Rs156.80 and Rs140.25 respectively.