Sheela Foam (SFL) Q4 23/24 earnings summary

Executive summary

• FY24 consolidated revenue ₹2,982.31 crore vs ₹2,873.32 crore; profit after tax ₹183.93 crore vs ₹200.84 crore. Kurl-on was consolidated from Oct. 20, 2023.

• Strategic priorities include integrating Kurl-on, developing synergies across procurement, manufacturing, logistics and distribution, and expanding into furniture through the Furlenco investment.

Financial highlights

• Consolidated operating revenue was ₹2,982.31 crore vs ₹2,873.32 crore; profit before tax was ₹255.93 crore vs ₹273.09 crore, including exceptional gains of ₹22.70 crore in FY24.

• Consolidated profit before finance cost, depreciation and tax was ₹417.64 crore vs ₹383.78 crore; finance costs rose to ₹68.62 crore from ₹21.07 crore.

• Standalone operating revenue was ₹1,879.52 crore vs ₹2,038.57 crore; PAT was ₹168.23 crore vs ₹171.09 crore.

• Consolidated revenue from operations was ₹2,982.31 crore; other income was ₹117.10 crore, including investment-sale gains and fair-value adjustments.

Outlook and guidance

• Management expects Indian mattress-sector growth, supported by demographics, disposable income and organised-market adoption; no quantified company revenue or earnings guidance was stated.

• Jabalpur plant construction targets the unorganised mattress market, stated as 64% of India’s total mattress market; planned capex is ₹0.80 billion and the plant will use VPF technology.

• Priorities include affordable products for 5,000+ towns, e-commerce via Kurl-on, regional foam-margin improvement, technical-foam expansion and greater exports using Spain capacity.

• Management expects volume growth in Australia and Spain following completed capacity expansions; FY24 revenue declined in both regions, principally due to falling raw-material prices in Spain.