Q3 2025 Sheela Foam Ltd Earnings Call Transcript
Key Points
- Sheela Foam Ltd (BOM:540203) reported a 54% year-on-year growth in standalone revenue for the quarter, reaching INR791 crores.
- The company has successfully integrated the Kurlon acquisition, which is expected to be fully accounted for within the financial year.
- The focus on the B2C segment, particularly in the Indian mattress market, has resulted in a growth from 46% to 51% in the mattress business.
- E-commerce has been a significant growth driver, contributing to a 24% increase in volume and a 16% increase in value on a quarter-on-quarter basis.
- The company has seen a comeback in EBITDA margins in its Australian operations, reaching double digits, and a 15% volume growth in its Spanish subsidiary.
- Net profit for the quarter decreased by 19% year-on-year, primarily due to increased depreciation and interest costs from the Kurlon acquisition.
- The comfort business segment experienced a 5% decline, reflecting challenges in decommoditizing the product line.
- The Australian market has been contracting, impacting consolidated growth, although this is expected to stabilize by the end of the financial year.
- The company faced challenges with TDI supply due to a shutdown at a local supplier, leading to increased costs from purchasing on the open market.
- Consolidated EBITDA margins declined to 8.4% for the nine months ended December 2024, with net profit down by 37% year-on-year.
Ladies and gentlemen, good morning, and welcome to the Sheela Foam Limited conference call hosted by Emkay Global Financial Services.
We have with us today, Rahul Gautam, Executive Chairman; Tushar Gautam, Managing Director; Nilesh Mazumdar, CEO, India Business; Rakesh Chahar, Whole-Time Director; and Amit Kumar Gupta, Group CFO. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Mohit Dodeja, from Emkay Global Financial Services. Thank you, and over to you.
Good morning, everyone. I would like to welcome the management and thank them for this opportunity. I shall now hand over the call to the management for the opening remarks. Over to you, sir. (technical difficulty)
Ladies and gentlemen, oh, we have lost the line of the management. Please stay connected while I join them. Ladies and gentlemen, we have the management line connected. Please proceed, sir.
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