Sheela Foam (SFL) Q4 15/16 earnings summary

Executive summary

• FY16 consolidated gross revenue reached Rs 1,713.07 crore vs Rs 1,563.91 crore; consolidated PBT rose to Rs 151.91 crore from Rs 57.04 crore and PAT to Rs 104.71 crore from Rs 42.32 crore.

• Standalone gross revenue grew more than 11% to Rs 1,432.54 crore; standalone PBT increased 192% to Rs 132.26 crore.

• Profitability benefited from lower raw-material costs, better yields, product-mix optimization and innovative marketing.

Financial highlights

• Consolidated revenue from operations, net of excise duty, was Rs 1,549.99 crore vs Rs 1,417.67 crore; total revenue including other income was Rs 1,566.87 crore vs Rs 1,428.27 crore.

• Consolidated PBT was Rs 151.91 crore vs Rs 57.04 crore; PAT was Rs 104.71 crore vs Rs 42.32 crore.

• Consolidated finance costs fell to Rs 11.67 crore from Rs 16.19 crore; depreciation and amortization was Rs 29.27 crore vs Rs 27.96 crore.

• Standalone gross revenue was Rs 1,432.54 crore vs Rs 1,285.80 crore; PBT was Rs 132.26 crore vs Rs 45.27 crore and PAT Rs 90.15 crore vs Rs 34.22 crore.

Outlook and guidance

• Management expects better results, supported by its growth strategy and brand positioning, which it expects to help sustain profitability despite raw-material price increases.

• Mattress and home-comfort product demand was expected to rise with higher incomes and more households; GST was expected to increase organized players’ industry share and support sales and profitability.