Sheela Foam declines after Q3 PAT slips 32% YoY

Sheela Foam fell 5.02% to Rs 3,233.20 after the company posted a 32.7% fall in consolidated net profit to Rs 67.35 crore in Q3 FY22 from Rs 100.14 crore posted in Q3 FY21.

Consolidated net sales grew 6.7% to Rs 881.3 crore in Q3 FY22 over Q3 FY21. The company's profit before tax declined 28.2% to Rs 97.02 crore in Q3 FY22 from Rs 135.06 crore recorded in Q3 FY21.

Sheela Foam said that during the quarter, the prices of the key raw materials of TDI and Polyol remained highly volatile and increased on a QoQ basis, with TDI prices reaching an all time high. The increase in raw material prices combined with increase in sales and marketing expenses impacted the overall margins and profitability in the quarter.

EBITDA for Q3Y22 stood at Rs 95 crores, as against Rs 144 crore posted in the corresponding quarter last year. EBITDA margin stood at 11% in Q3 FY22. The company's total expenses surged 15.3% to Rs 786.32 crore in Q3 FY22 over Q3 FY21.

Sheela Foam is a leading manufacturer of mattresses in India marketed under its flagship brand 'Sleepwell'.

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