SH Kelkar spurts on further paring debt in Q1

SH Kelkar and Company jumped 6.32% to Rs 70.70 after the company said it further reduced its net debt to between Rs 254 to 258 crore as on 30 June 2020 from Rs 299 crore as on 31 March 2020.

The company in its business update on Monday (6 July) said the nationwide lockdown significantly affected production and sales in the domestic market during April and May. The firm witnessed encouraging demand pick-up from the last week of May 2020 continuing into June 2020. The revenues in Q1 FY21 stood between Rs 190 to 192 crore (provisional and unaudited figure).

The firm has further reduced its net debt to Rs 254 to 258 crore range (provisional & unaudited figure) as on 30 June 2020 as against Rs 299 crore as on 31 March 2020.

The management continues to very closely monitor the operating environment and actively engage with its customers to build demand. From June 2020 onwards, SH Kelkar and Company has been witnessing initial signs of recovery in the FMCG industry and a gradual normalization of the supply chain system. Accordingly, the firm is taking all necessary steps to ensure optimal production levels are maintained throughout the year.

While continuity of the market trend cannot be firmly ascertained at this time, SH Kelkar and Company is hopeful that that the business flow will remain steady. The firm believes that once the operating situation is stabilized, it should be able to deliver revenue growth and revert to its normalized margins once again, it stated.

On a consolidated basis, the company reported a 40.3% drop in net profit to Rs 12.02 crore on a 0.4% increase in net sales to Rs 269.77 crore in Q4 March 2020 over Q4 March 2019.

S H Kelkar and Company is a fragrance and flavors manufacturing company based in India. The firm is engaged in offering fragrances in various categories, such as personal care, hair care, skincare and cosmetics, fabric care, household products and fine fragrances.

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