S H Kelkar and Company Limited — Important, 06-01-2025: Monthly Business Updates

S H Kelkar and Company Limited (SHK) reports a healthy operational update for Q3 FY2025, with strong demand across key segments, particularly in its core European market. Consolidated revenues for the first nine months of FY2025 are ₹1,548 crore, marking a 17% year-on-year growth. The company anticipates double-digit growth for the full financial year. However, gross margins remain under pressure due to raw material supply constraints, with expectations for this trend to persist until Q4 FY2025. Strategic investments, including new Development Centres in Europe and the US, have further weighed down EBITDA margins but are positioned to drive future growth. As of December 31, 2024, net debt has risen to approximately ₹700 crore due to inventory replenishment and capital expenditures. SHK is in discussions with its insurer regarding a partial claim settlement that could assist in debt reduction. Overall, the outlook remains positive, but investors should monitor the impact of margin pressures and debt levels closely.