Q2 2025 Sheela Foam Ltd Earnings Call Transcript
Key Points
- Sheela Foam Ltd (BOM:540203) successfully integrated the acquisition of Kurlon, achieving significant synergies and cost savings.
- The company reported a 19% year-on-year volume growth in the mattress segment, marking the highest growth in the last eight quarters.
- Sleepwell, the flagship brand, saw a 40% year-on-year volume increase, while Kurlon volumes grew by 26%.
- The company achieved an annual run rate savings of INR100 crores from the integration, with further savings expected in upcoming quarters.
- Sheela Foam Ltd (BOM:540203) increased its stake in Furlenco to 45%, with the company now generating cash at the P&L level.
- Net profit for the first half of the financial year declined by 7% year-on-year due to incremental interest costs from the Kurlon acquisition.
- Consolidated net profit for the second quarter decreased by 79% year-on-year, impacted by interest and depreciation costs.
- The company faces challenges in increasing mattress pricing, with current growth driven more by volume than value.
- Inventory levels have decreased significantly, raising questions about the sustainability of current inventory management practices.
- The integration of Kurlon has led to increased debt, impacting profitability despite operational improvements.
Ladies and gentlemen, Good day.
And welcome to the Q2 FY25 earnings conference call of Sheila Foam Limited, hosted by Aans Capital. As a reminder, all parts of alliance will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call? (Operator Instructions). Please note that this conference is being recorded.
I now hand the conference over to Ms Anushka Chitnis from Arihant Capital. Thank you and over to you, ma'am.
Thank you. Good evening and festive greetings to all on behalf of Arihant Capital. I would like to welcome everyone to the Q2 and H1 FY25 earnings conference call of Sheila Form Limited. I would like to take this opportunity to welcome the management of Sheila form represented by Mr Rahul Gautam, the executive Chairman, Mr Rakesh Shah, the whole time director Mr Nilesh Mazin, the CEO of the India Business and Mr Amit Kumar Gupta, the group CFO now
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