EBITDA declined 11.2% to Rs 63.8 crore in Q3 FY22 from Rs 71.8 crore posted in the same period last year. EBITDA margin fell to 15.8% in Q3 FY22 from 18.8% reported in the same period last year. The company maintains a cautionary stance on raw material situation given the inflationary trends seen in the recent past.

Commenting on the performance, Kedar Vaze, whole time director and group CEO at SH Kelkar and Company said, “We have reported a steady performance in the quarter and nine months period. In our core domestic fragrance business, we saw improved demand momentum. Our CFF and Nova segment also saw healthy offtake during the quarter. Although client wins across our geographies continued to remain healthy, inflationary trends impacted volume growth in international markets. In a strategic development during the quarter, we are happy to share that we have acquired 62% of stake in Holland Aromatics, a leading fragrance company in the Netherlands. The acquisition, while being complementary to the CFF business, supports our strategy to deepen presence in the European fragrance market. Our proven expertise in the F&F industry along with the blend of capabilities from CFF, Nova, and Holland Aromatics will strengthen our endeavor to tap upon diverse global customer segments. In-sync with this strategy, we have been actively participating in large MNC tender processes. This is one of the key focus areas for us, which we believe, will drive the next leg of growth. The Board, during the quarter, has also approved the acquisition of 100% stake in NuTaste Food and Drink Labs. The acquisition accelerates the momentum of our flavour business and will enable us to expand further into the high-potential flavour categories such as syrups, sauces, seasonings, fruit preps and other such premium grade products. Overall, both the acquisitions are value-accretive and highly synergistic in nature. As we look ahead, a combination of our strategic business initiatives, healthy client engagements and our participation in global RFPs will result in a positive growth momentum for us. We look forward to delivering a strong and sustainable growth in the medium to longer term”

S H Kelkar and Company Limited (SHK) is the largest Indian-origin Fragrance & Flavour Company in India. It has a long standing reputation in the fragrance industry developed in 96 years of experience. Its fragrance products and ingredients are used as a raw material in personal wash, fabric care, skin and hair care, fine fragrances and household products.