Q3 2025 S H Kelkar and Company Ltd Earnings Call Transcript
Key Points
- S H Kelkar & Co Ltd (BOM:539450) reported a robust 17% year-on-year revenue growth for the first nine months of FY'25, reaching INR1556 crore.
- The company has seen strong performance in its European segment, with core business revenues growing by 11.8% on a like-for-like basis.
- Strategic investments in Europe, UK, and USA are expected to enhance market share and strengthen the company's presence in high-potential markets.
- The flavors segment has shown healthy revenue growth and profitability, supported by improved market conditions and operating efficiency.
- The company is confident in maintaining a double-digit growth trajectory, with expectations of 12% growth in the mid to long term.
- Gross margins were impacted by higher raw material prices, particularly due to droughts in Indonesia and Brazil, leading to increased costs.
- The company faced challenges in passing on price increases to clients in the first half of the year, resulting in margin compression.
- Net debt increased to INR703 crore as of December 31, 2024, due to inventory replenishment and capital expenditure.
- There is a slowdown in growth momentum in domestic Indian large accounts, affecting overall growth rates.
- The company has experienced volatility in performance, with past instances of growth slowdowns and margin squeezes, making predictability challenging for investors.
Ladies and gentlemen, good day and welcome to the S H Kelkar and Company Limited's earnings conference call. (Operator Instructions) I now have a conference over to Mr. Mit Shah from CDR India.
Thank you and over to you, Mr. Shah.
Thank you. Good morning, everyone, and thank you for joining us on S H Kelkar and Company Limited's Q3 and FY'25 earnings conference call. We have with us Mr. Kedar Vaze was a full-time director and group CEO; and Mr. Rohit Saraogi, EVP and group CFO of the company.
We will begin the call with a brief opening remark from the management following which we'll open the forum for a Q&A session. Before we begin, I'd like to point out that certain statements made in today's call could be following in nature, and a disclaimer to this effect has been included in the earnings presentation shared with you earlier.
I would like to invite Mr. Kedar there to make his opening remarks.
Thank you and over to you, sir.
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