Q3 2024 S H Kelkar and Company Ltd Earnings Call Transcript
Key Points
- S H Kelkar & Co Ltd (BOM:539450) reported healthy year-on-year and quarter-on-quarter revenue growth, driven by increased contributions from new accounts and a revival of demand from midsized and smaller accounts.
- The company's core Europe segment reported positive results with healthy revenue growth and strong gross and EBITDA margins.
- S H Kelkar & Co Ltd (BOM:539450) sustained its margin performance during the quarter and remains on track to report over 16% EBITDA margins for the full year.
- The company secured multiple order wins from a global MNC player, marking a significant breakthrough in penetrating tightly held global accounts.
- The company has a strategic plan to better penetrate existing and new markets, particularly focusing on Southeast Asia, Africa, the United States, and other markets.
- The ramp-up of the new MNC orders is delayed by 12 to 14 months due to program delays on the client side.
- The company's Flavours segment, despite encouraging performance, still has single-digit margins and requires strategic focus for improvement.
- The company has a high inventory status, which has impacted its capital employed and needs to be reduced to improve ROCE.
- The company's debt stands at INR 526 crores, primarily due to acquisitions, and there is a need for efficient cash flow management to reduce this debt.
- The company faces competition from major global players who hold over 60% of the market share in India, posing a challenge to its market position.
Ladies and gentlemen, good day, and welcome to the S H Kelkar and Company Limited earnings conference call. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Mit Shah from CDR India. Thank you, and over to you, sir.
Thank you, Dhawin. Good afternoon, everyone, and thank you for joining us on S H Kelkar and Company Limited's Q3 and 9M FY '24 Earnings Conference Call. We have with us Mr. Kedar Vaze, 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 remarks from management, following which we will open the forum for an interactive Q&A session.
Before we begin, I'd like to point out that certain statements made in today's call could be forward-looking in nature, and a disclaimer to this effect has been included in the earnings presentation shared with you earlier.
I'd like to invite Mr. Kedar Vaze to make his opening remarks. Thank you, and
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