Sheela Foam (SFL) Q4 20/21 earnings summary

Executive summary

• FY21 consolidated revenue rose to ₹2,435.36 crore from ₹2,173.63 crore and PAT to ₹240.15 crore from ₹194.29 crore, despite pandemic disruption and lockdowns.

• Standalone revenue declined to ₹1,689.49 crore from ₹1,754.77 crore, while PAT increased to ₹181.15 crore from ₹165.51 crore on cost controls.

• Recovery in India and sharp overseas growth supported consolidated results; a severe second COVID wave and sharply higher input costs clouded the near-term outlook.

Financial highlights

• Consolidated revenue from operations increased 12% YoY to ₹2,435.36 crore; profit before tax rose to ₹323.84 crore from ₹256.37 crore.

• Consolidated PAT was ₹240.15 crore versus ₹194.29 crore; EPS was ₹49.23 versus ₹39.83.

• Standalone revenue fell to ₹1,689.49 crore from ₹1,754.77 crore, while PAT grew to ₹181.15 crore from ₹165.51 crore.

• Consolidated profit before finance charges, depreciation, tax and exceptional items was ₹414.39 crore versus ₹340.40 crore; prior-year comparable excluding the ₹11.99 crore exceptional item was ₹328.41 crore.

• Consolidated operating cash flow rose to ₹260.30 crore from ₹157.30 crore; investing cash outflow was ₹214.70 crore.

Outlook and guidance

• FY22 expectations were supported by vaccination, normalising activity, infrastructure spending, housing demand and low interest rates; the economic outlook cited 12.5% GDP growth.

• Second-wave lockdowns hurt April–May 2021 sales; timing of normalization remained uncertain. Online marketing, Sleepwell@Home and health-focused products were key responses.

• Strategy prioritizes market-share gains in low-share regions, rural and low-price categories, wider distribution, e-commerce, product innovation and operational cost reduction.

• The online mattress business was described as positioned for expansion; SleepX sold over 100,000 mattresses and generated more than ₹55 crore revenue, up 74% YoY.