S H Kelkar and Company, the largest Indian origin Fragrance and Flavours Company in India, has announced its financial results for the quarter & nine-months ended December 31, 2015.
9M FY2016 performance overview compared with 9M FY2015
· Total Income increased to Rs. 661 crore from Rs. 600 crore, up by 10%
EBITDA grew by 19% to Rs. 113 crore from Rs. 95 crore
EBITDA margin stood at 17.1%, up by 131 bps
Profit Before Tax and Extraordinary Items grew by 27.4% to Rs 78 crore from Rs 62 crore
Profit After Tax came in at Rs. 54 crore compared to Rs. 49 crore, up 9.4%
Net Operating Profits after Tax (before sale of property and prior period tax credit) grew by 36% to Rs. 53 crore from Rs. 39 crore
EPS amounted to Rs. 4.02 per share
Q3 FY2016 performance overview compared with Q3 FY2015
Total Income increased to Rs. 230 crore from Rs. 196 crore, up by 17%
EBITDA grew by 146% to Rs. 44 crore from Rs. 18 crore
EBITDA margin stood at 19.0%, up by 994 bps
Profit Before Tax and Extraordinary Items grew by 414% to Rs. 33 crore from Rs. 6.5 crore
Profit After Tax came in at Rs. 23 crore compared to Rs. 4 crore
Net Operating Profits after Tax (before sale of property and prior period tax credit) grew by 413% to Rs. 23 crore from Rs. 5 crore
EPS amounted to Rs. 1.74 per share
Key Developments
Board of Directors considered and approved the acquisition of Hi-Tech Technologies (HTT) comprising of Flavours Division
HTT is a Mumbai-based entity and in the business of Manufacturing and Sales of Flavours – it has a manufacturing facility in Daman with FSSA licence and has presence throughout India
HTT’s forecast revenue for FY 2016 is Rs. 22 crore with margin in line with industry benchmarks
Acquisition would be on a slump sale basis, for a net aggregate consideration of Rs. 28.6 crore. Acquisition is targeted to close in Q1 FY 2017
Acquisition in-line with the Company’s plan to pursue strategic tuck-in acquisitions to grow the Flavours business
Balance sheet position significantly strengthened post IPO – Net Debt of Rs. (21) crore as of 31 December 2015
Successfully completed an IPO in November 2015, the proportion of fresh share issue resulted in inflow of Rs. 210 crore
IPO proceeds to be used for paying down debt –full impact to be witnessed in the coming quarters
Commenting on the results, Mr. Kedar Vaze, Chief Executive Officer and Director at SH Kelkar and Company said,
“I am delighted to report continued strong operational and financial performance in our first publicly reported results post listing. I welcome all our public shareholders and look forward to their participation and support in our journey of sustained growth and progress.
We are the largest Indian-origin Fragrance & Flavour Company with a solid R&D backbone. It is our endeavor to continually raise our market share, enhance the portfolio of our products, expand our customer base and strengthen the bond that we have with our existing customers. Post IPO we have further augmented our Balance Sheet to become a Net Debt free company. With adequate capacities already in place and a business that generates healthy free operating cash flows we are comfortably poised to pursue our strategic initiatives and are excited about our future and our growth prospects.”
