S H Kelkar Reports 22% Decline in YoY Net Profit Growth in Q1 FY20-21

S H Kelkar and Company Ltd., a fragrances and flavours manufacturer based in India announced its results for the first quarter ended June 30, 2020.

Q1 Results- QoQ

The company’s net profit increased 23.2% to Rs 14.81 crores ($2 miilion) for the period ended June 30, 2020 as against net profit of Rs 12.02 crores ($1.6 miilion) for the previous quarter.

Net sales declined 28% to Rs 196.61 crores ($26.3 miilion) during the period ended June 30, 2020 as com-pared to Rs 273.54 crores ($36.5 miilion) during the previous quarter.

Q1 Results- YoY

The company’s net profit dropped 22% to Rs 14.81 crores ($2 miilion) for the period ended June 30, 2020 as against net profit of Rs 18.98 crores ($2.5 million) for the prior-year quarter.

Net sales declined 29% to Rs 196.61 crores ($26.3 miilion) during the period ended June 30, 2020 as com-pared to Rs 275.76 crores ($36.8 miilion) during the prior-year quarter.

On the impact of the pandemic on its business, Mr. Kedar Vaze, Whole Time Director and Group CEO at SH Kelkar and Company said, “The quarter gone by started amidst an unpredictable operating environment. The spread of the COVID-19 pandemic and the resultant lockdowns caused overall disruption in manufacturing and business activities, particularly in the months of April and May. However, as the country moved to the Un-lockdown phase, we witnessed encouraging demand pickup from the last week of May continuing into the month of June.”

“In addition, a stabilized raw material environment helped maintain gross margins at 44%. It is also encouraging to note that SHK has further reduced its net debt during the quarter to Rs. 246 crores ($32.9 miilion) as on June 30, 2020,” he added.