Sheela Foam (SFL) Q4 21/22 earnings summary

Executive summary

• FY22 consolidated revenue rose 23% to ₹2,982 crore; PAT declined to ₹219 crore from ₹240 crore as global raw-material costs increased.

• Standalone revenue increased 26% to ₹2,124 crore and PAT rose 9% to ₹197 crore; mattress market share and e-commerce sales advanced.

• Growth plans centre on new capacity in India, Australia and Spain, exports, core brands and deeper digital and retail reach.

Financial highlights

• Consolidated revenue from operations was ₹2,981.81 crore versus ₹2,437 crore in FY21; profit after tax was ₹218.72 crore versus ₹240.15 crore.

• Standalone revenue from operations reached ₹2,124.44 crore versus ₹1,693.86 crore; PAT was ₹197.32 crore versus ₹181.15 crore.

• Consolidated EBITDA was ₹314.9 crore, with a 10.6% margin, versus ₹362.3 crore and 14.9% in FY21.

• Consolidated basic and diluted EPS was ₹44.84 versus ₹49.23; standalone EPS was ₹40.45 versus ₹37.13.

Outlook and guidance

• Jabalpur mattress-and-pillow plant was expected to start production by end-2022; Adelaide foaming unit was targeted for October 2022 and Spain capacity expansion for January 2023.

• Outlook remained positive, supported by favourable demographics, rising affluence, low per-capita foam consumption and demand from housing, automotive, hospitality and healthcare.

• Priorities include brand differentiation, segmented and regional marketing, digitisation, improved in-store service, broader product solutions and overseas capacity expansion.

• E-commerce revenue reached ₹85 crore, up 55% YoY; SleepX, Personal Protector and regionalised communications were identified as growth levers.