S H Kelkar and Company Ltd · NSE:SHK
S H Kelkar and — Q2 FY2023 Earnings Presentation
26 slides from S H Kelkar and's earnings presentation, Oct 22, 2022
Slide 1: Exchange submission letter for results and earnings presentation
October 21, 2022 To To The Manager The Manager The Department of Corporate Services The Listing Department BSE Limited National Stock Exchange of India Limited Floor 25, P. J. Towers, Exchange Plaza, Bandra Kurla Complex, Dalal Street, Mumbai – 400 001 Bandra (East), Mumbai – 400 051 Scrip Code: 539
Slide 2: S H Kelkar announces Q2 & H1 FY2023 results
S H Kelkar and Company Limited Corporate Office: L.B.S Marg, Near Balrajeshwar Temple, Mulund (W), Mumbai – 400080 Registered Office: Devkaran Mansion, 36, Mangaldas Road, Mumbai 400 002. S H Kelkar announces Q2 & H1 FY2023 results Q2 FY2023 Revenues from operations at Rs. 414.2 cr, higher by 15.4%
Slide 3: H1 FY23 results continued and CEO comments
o EBITDA margin at 14.0% vs 14.0% − Reported PAT** at Rs. 48.5 crore as against Rs. 103.5 crore − Cash Profit (excluding exceptional items) stood at Rs 91.3 crore as against Rs. 78.2 crore, higher by 16.8% Note: • SHK Q2 FY 23 results include consolidation of recently acquired entities in Q4 FY 22 -
Slide 4: Key Developments: global RFP and stake acquisitions
Key Developments: Participation in Global Request for Proposal (RFP): • SHK’s continues to make healthy progress in the global RFP - the Company’s team of master perfumers are working on multiple briefs across various brands and product categories • The Company remains optimistic on the significant
Slide 5: About S H Kelkar and Company Limited
About S H Kelkar and Company Limited: S H Kelkar and Company Limited (SHK) is the largest Indian-origin Fragrance & Flavour Company in India. It has a long-standing reputation in the fragrance industry developed in 96 years of experience. Its fragrance products and ingredients are used as a raw mate
Slide 6: S H Kelkar and Company Limited Q2 & H1 FY23
S H KELKAR AND COMPANY LIMITED Q2 & H1 FY23 Earnings Presentation October 21, 2022
Slide 7: Disclaimer
Disclaimer Certain statements and opinions with respect to the anticipated future performance of SH Kelkar (SHK) in the presentation (“forward-looking statements”), which reflect various assumptions concerning the strategies, objectives and anticipated results may or may not prove to be correct. Suc
Slide 8: Q2 & H1 FY23 – Key Financial Highlights
Q2 & H1 FY23 – Key Financial Highlights Revenue Gross Profit EBITDA Cash PAT 322 295 146 161 714 829 91 116 78 414 100 49 359 55 60 44 Q2 FY22 Q2 FY23 H1 FY22 H1 FY23 Q2 FY22 Q2 FY23 H1 FY22 H1 FY23 Q2 FY22 Q2 FY23 H1 FY22 H1 FY23 Q2 FY22 Q2 FY23 H1 FY22* H1 FY23 Shift % (Y-o-Y) 15.4% 16.1% 10.3% 9.
Slide 9: Management Comment
Management Comment Commenting on the performance, Mr. Kedar Vaze, Whole Time Director & CEO at SH Kelkar and Company Ltd. said: “We have delivered a steady performance in the first half of the fiscal despite facing macro-economic challenges. While the demand environment across Emerging Markets conti
Slide 10: Revenue Performance – Q2 and H1 - CY vs PY
Revenue Performance – Q2 and H1 - CY vs PY Q2 H1 7.1% 10% 1.7% 6.8% 9.9% 1.8% Overall Growth of 15.1% Overall Growth of 15.5% Demand trends in India and other emerging markets remained soft during the quarter. Furthermore, the operating environment in Europe was challenging due to the ongoing macro-
Slide 11: Operating Performance – Q2 and H1 - CY vs PY
Operating Performance – Q2 and H1 - CY vs PY Q2 H1 15.3% EBITDA % to Sales 14.6% 14.0% EBITDA % to Sales 14.0% 1.7% 2.1% 0.3% 1.3% 0.0% 2.3% 0.9% 1.0% 0.4% 0.0% Higher raw material costs, especially in Europe, impacted margin performance during the quarter. The Company continues to take price hikes
Slide 12: Balance Sheet Snapshot – As on September 30, 2022
Balance Sheet Snapshot – As on September 30, 2022 503 1,039 921 98 0.48x Networth Net Debt Fixed Assets Cash & Investments & Net Debt to Equity (x) Note: 7 1) Figures in Rs. crore unless specified otherwise
Slide 13: Financial Leverage
Financial Leverage Net Debt Net Debt to Equity 509 503 0.48 0.47 0.34 0.29 March 2022 September 2022 FY20 FY21 FY22 H1 FY23 Interest Cost 10 7 H1 FY22 H1 FY23 Debt reduction Rs. xxx crore and interest saving of Rs. xxx crore Note: 8 1) Figures in Rs. crore unless specified otherwise
Slide 14: Financial and Operational Discussions (Y-o-Y)
Financial and Operational Discussions (Y-o-Y) H1 FY23, Total Income stood at Rs. 838.2 crore, higher by 17.5% ▪ SHK reported steady performance whilst facing a soft demand environment in the Emerging markets and a challenging macro-economic environment in the European markets − During the quarter, E
Slide 15: Key Developments
Key Developments Participation in Global RFP: ▪ SHK’s continues to make healthy progress in the global RFP - the Company’s team of master perfumers are working on multiple briefs across various brands and product categories ▪ The Company remains optimistic on the significant multi-year business pote
Slide 16: Q2 FY23 – Segment Highlights
Q2 FY23 – Segment Highlights 11
Slide 17: Revenue Break-Up – Q2 & H1 FY23
Revenue Break-Up – Q2 & H1 FY23 Business Segment Market Segment 657 724 650 553 326 365 276 331 161 174 32 47 57 100 82 81 Fragrances Flavours Emerging Market Europe Shift % (Y-o-Y) 12.1% 10.2% 45.4% 76.6% Shift % (Y-o-Y) 19.8% 17.5% -0.9% 8.4% Note: Cash and cash equivalent includes investments in
Slide 18: Profitability Break-Up – Q2 FY23
Profitability Break-Up – Q2 FY23 Fragrance Division - EBIT Flavours Division - EBIT 64 67 10 7 36 4 31 -1 Note: Cash and cash equivalent includes investments in mutual fund Q2 FY22 Q2 FY23 H1 FY22 H1 FY23 Q2 FY22 Q2 FY23 H1 FY22 H1 FY23 Shift % (Y-o-Y) -13.3% 4.5% -108.1% -56.5% Margins % 10.9% 8.4%
Slide 19: Europe Business Performance (Euro Mn)
Europe Business Performance (Euro Mn) Revenue Core Gross Margins (%) EBITDA (%) 17 48.9% 49.7% 46.5% 46.5% 12 19.1% 16.7% 15.6% 14.7% 8 6 Q2 FY22 Q2 FY23 H1 FY22 H1 FY23 Q2 FY22 Q2 FY23 H1 FY22 H1 FY23 Q2 FY22 Q2 FY23 H1 FY22 H1 FY23 Shift % (Y-o-Y) 27.1% 34.0% • Performance in the European markets
Slide 20: Annexure
Annexure 15
Slide 21: Amortization of Intangible Assets – Q2 FY23
Amortization of Intangible Assets – Q2 FY23 Estimated amortization of Intangible assets (Rs. crore) Acquisitions of Holland Aromatics 7.0 and NuTaste 1.4 in Q4FY22 6.8 led to increase in 3.6 intangibles 1.9 1.9 Q2 FY 22 Q1 FY 23 Q2 FY 23 Acquisitions Other Intangibles • SHK concluded the full acquis
Slide 22: Consolidated Summarized P&L Statement
Consolidated Summarized P&L Statement Particulars (Rs. crore) Q2 FY23 Q2 FY22 Y-o-Y Change (%) H1 FY23 H1 FY22 Y-o-Y Change (%) Revenue from Operations Sales 394.8 335.0 18% 785.5 666.9 18% Sales - Contract Manufacturing 17.6 23.3 -24% 38.3 46.3 -17% Other Operating Income 1.8 0.5 242% 5.4 1.2 370%
Slide 23: Consolidated Balance Sheet
Consolidated Balance Sheet Consolidated Statement of Assets and Liabilities As at September 30, 2022 As at March 31, 2022 Consolidated Statement of Assets and Liabilities As at September 30, 2022 As at March 31, 2022 Unaudited Audited Particulars Unaudited Audited Particulars B EQUITY AND LIABILITIE
Slide 24: Conference Call Details
Conference Call Details S H Kelkar and Company – Q2 FY23 Earnings Conference Call Time • 11:00 AM IST on Friday, October 28, 2022 Primary dial-in number • +91 22 6280 1141 • +91 22 7115 8042 India Local access Number • +91 70456 71221 (Available all over India) • Hong Kong: 800 964 448 International
Slide 25: About Us
About Us S H Kelkar and Company Limited (SHK) is the largest Indian-origin Fragrance & Flavour For further information please contact: Company in India. It has a long-standing reputation in the fragrance industry developed in 96 years of experience. Its fragrance products and ingredients are used as
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S H Kelkar and Company — Q2 FY2023 Earnings Presentation on 6ix