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S H Kelkar and Company announces Q2 & H1 FY17 results

H1 FY17
Total Income up 17% to Rs. 501 crore
EBITDA improves 36% to Rs. 95 crore
PAT grew by 96% to Rs 52 crore

Mumbai, November 14, 2016: S H Kelkar and Company, the largest Indian-origin Fragrance and Flavours Company in India, has announced its financial results for the quarter ended September 30, 2016.
H1 FY17 performance overview compared with H1 FY16
Total Income grew by 17% to Rs. 501 crore from Rs. 429 crore
EBITDA increases by 36% to Rs. 95 crore from Rs. 70 crore
EBITDA margin improves by 265 bps to 19%
Profit Before Tax higher by 100% to Rs. 82 crore from Rs. 41 crore
Profit After Tax increases by 96% at Rs. 52 crore compared to Rs. 27 crore

Q2 FY17 performance overview compared with Q2 FY16
Total Income grew by 18% to Rs. 245 crore from Rs. 208 crore
EBITDA increases by 60% to Rs. 45 crore from Rs. 28 crore
EBITDA margin improves by 481 bps to 18.1%
Profit Before Tax higher by 186% to Rs. 37 crore from Rs. 13 crore
Profit After Tax increases by 247% at Rs. 24 crore compared to Rs. 7 crore

Key Developments 
Executed Business Transfer Agreement (BTA) with Gujarat Flavours Private Limited (GFPL)  for acquisition of the Company’s flavours division
The Company expects to complete the acquisition process in Q3 FY2017
GFPL is a Vadodara-based 34-year old entity; the Company’s flavour division reported a topline of Rs. 10.5 crore in FY16
Acquisition is in-line with the Company’s plan to pursue strategic tuck-in acquisitions to increase its market share in the Flavours business

Commenting on the results, Mr. Kedar Vaze, Chief Executive Officer and Director at SH Kelkar and Company said,

“I am pleased to report yet another strong quarter on the back of healthy volumes and improved realizations. The domestic division continued to deliver robust topline growth of 26%, while the performance in the international segment was muted.

Going forward, we expect the global macro-economic environment to remain subdued in the near-term; however we believe the Indian consumption story should enable us to report results in-line with our business plan. We remain at the forefront of the ever evolving consumer landscape. Our investments in R&D will continue to drive innovation and growth in this niche industry.”

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 90 years of experience.  Its fragrance products and ingredients are used as a raw material in personal wash, fabric care, skin and hair care, fine fragrances and household products. Its flavor products are used as a raw material by producers of baked goods, dairy products, beverages and pharmaceutical products. It offers products under SHK, Cobra and Keva brands.
The Company has a strong and dedicated team of 18 scientists, 12 perfumers, two flavourists, evaluators and application executives at its facilities and five creation and development centers in Mumbai, Bengaluru, The Netherlands and Indonesia for the development of fragrance and flavour products. Their research team has developed 12 molecules over the last three years, of which the Company has filed patent applications for three.
Over the years, SHK has developed a vast product portfolio of fragrances and flavor products for the FMCG, personal care, pharmaceutical and food & beverages industry. The Company has a diverse and large client base of over 4,100 customers including leading national and multi-national FMCG companies, blenders of fragrances & flavors and fragrance & flavor producers.