SH KELKAR AND COMPANY SHARES GAIN UP TO 5% ON STRONG REVENUE GROWTH IN JUNE QUARTER
Shares of home-grown fragrance and flavours company S H Kelkar and Company Ltd (SHK) soared 5% on Monday after the company reported strong growth in revenue for the first quarter of the current financial year (FY 2024-25).
The company reported over 8% year-on-year growth in revenue at ₹456 crore in the June quarter (Q1Fy25).
In its business update for the April-June quarter of FY 2025, the company informed the stock exchanges that it has witnessed positive growth amid operational challenges. It witnessed robust demand across various segments during the quarter.
On a consolidated basis, SHK reported revenue of ₹456 crore for Q1 FY25, compared to ₹420 crore in Q1FY24, marking a YoY growth of over 8%.
In the stock exchange filing, the company said its fragrance division reported a year-on-year (YoY) growth of approximately 5% in Q1FY25.
This performance comes despite a significant setback caused by a fire incident at the key fragrance facility in Vashivali in Raigarh district of Maharashtra, in April, which led to an order backlog. The company expects to clear this backlog in the upcoming quarters.
While overall raw material supply remained stable, some areas experienced firmness.
Despite higher costs associated with managing the fire incident, increased volumes and strategic inventory management supported healthy profitability, the company said.
As of June 30, 2024, SHK’s net debt rose to ₹550 crore (provisional and unaudited), primarily due to the need to replenish inventory following the fire.
Reacting to the positive development, shares of SHK rallied to an intra-day high of ₹194.44 per piece on the BSE, marking an increase of nearly 5% from the previous close. With this gain, the company's market capitalisation has reached over ₹2,600 crore.
S H Kelkar and Company specialises in the manufacturing, supply, and export of fragrances and aroma ingredients. It is the largest domestic fragrance producer in India and the only Indian-origin company to file patents in the field of fragrance and novel aroma molecules.
Shares of SH Kelkar and Company were trading at ₹193.6 apiece, up 4.51%, on the BSE at 10:49 am.
2024-07-01T06:11:52Z dg43tfdfdgfd