- All
- Important
- Financial Update
- Fund Raise
- Board Meeting
- Dividend/Bonus
- JV/Acquisition
- Investor Meet
- Insider Trade
- Pledging
- Others
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1. Financial Highlights:
S H Kelkar has announced a board meeting on the financial results for the quarter and half-year. FY25 revenue grew 15.4% to Rs. 2,123.4 Cr, with EBITDA at Rs. 317 Cr, up 4.5%, though margins slipped to 15.0% from 16.5%. Adjusted PBT dipped 3.6% to Rs. 176.7 Cr; cash profit rose 7.5% to Rs. 224.1 Cr. Q4 revenue increased 10.5% to Rs. 567.4 Cr, but EBITDA declined 12.4% and margin fell to 13.9%. PBT before exceptions dropped 36%. The balance sheet is strong, with net worth of Rs. 1,272 Cr and moderate net debt of Rs. 87 Cr (net debt-to-equity 0.52x).
2. Strategic Initiatives & Growth Drivers:
Expansion of Creative Development Centres in Germany and the UK aims to deepen expertise and innovation. Improvements in raw material availability and calibrated price hikes are expected to help margin recovery. Incremental costs from growth initiatives appear stabilizing, positioning the company to leverage operating efficiency.
3. Business Developments:
Received Rs. 95 Cr interim insurance proceeds related to a fire claim, boosting liquidity. Consolidation of acquired entities continues, alongside plans to divest 40% stake in NuTaste Food and Drink Labs to focus on core fragrance/flavour business. Innovation remains key, with 10 new molecules developed over 4 years and 20 patent filings.
4. Market Position & Competitive Advantage:
Largest Indian-origin fragrance and flavour player with strong domestic growth and steady 8.4% like-for-like expansion in Europe. Broad product portfolio services major national and multinational FMCG companies. Growing CDCs and strong expertise in perfumery/science offer an edge in innovation and responsiveness.
5. Investor Implications:
Robust revenue growth and expanding footprint highlight positive growth potential. Margin pressure is near-term but expected to ease with raw material normalization and operating leverage. Insurance inflow supports financial health. Investors should watch execution risks around growth stabilization and margin recovery. Ongoing innovation and geographic expansion support sustainable value creation.