S H Kelkar smells good!

S H Kelkar and Company is among the top three gainers on the BSE since the opening bell. The stock price surged 14.5% to Rs.105.50 and currently hovers around 104 levels. Its 20% UC of the day is at Rs.110.75.

The largest Indian origin fragrance and flavour company posted a good set of earnings for Q2FY21.

Revenues from operations stood at Rs. 352 crore, up from Rs. 276 crore o On a like-to-like basis (excluding CFF contribution), revenues stood at Rs. 314  crore, higher by 14% .

EBITDA stood at Rs. 77 crore as against Rs. 39 crore and EBITDA margins stood strong at 21.4%.

Net profit came in at Rs.54 crore v/s Rs.15 crore. This profit includes an exceptional income of Rs.12.5 crore.

Better product mix and higher operating leverage resulted in improved profitability performance during the quarter. In addition, a stable raw material environment and cost optimization measures executed over the last few quarters further enhanced margins.

On July 28, 2020, SHK concluded the full acquisition of CFF and accordingly SHK’s Q2 FY2021 results includes consolidation of CFF numbers w.e.f August 1, 2020.

The company’s net debt position stood at Rs. 454 crore (includes consolidation of CFF debt). This is following the borrowings for the payment of the second and final tranche of the CFF acquisition of Rs. 141 crore.