Capitaline

Results 16-Aug-21

Analysis

Sheela Foam

OP up 37%

Sheela Foam consolidated net sales increased 104.95% to Rs 551.25 crore in Q1FY22 compared to Q1FY21. Operating profit margin has jumped from 10.35% to 6.94%, leading to 37.46% rise in operating profit to Rs 38.27 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 50.21% to 63.99%. Purchase of finished goods cost rose from 0.22% to 0.36%. Employee cost decreased from 17.90% to 10.99%. Other expenses fell from 20.67% to 17.70%. Other direct service cost fell from 3.24% to 2.80%.

Other income rose 64.76% to Rs 17.86 crore. PBIDT rose 45.11% to Rs 56.13 crore. Provision for interest rose 18.45% to Rs 4.88 crore. PBDT rose 48.29% to Rs 51.25 crore. Provision for depreciation rose 8.04% to Rs 18.54 crore.

Profit before tax grew 87.99% to Rs 32.71 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 7.59 crore, compared to Rs 5.6 crore. Effective tax rate was 23.20% compared to 32.18%.

Minority interest decreased 34.04% to Rs 0.31 crore. Net profit attributable to owners of the company increased 118.98% to Rs 24.81 crore.

Standalone India: During Q1FY22 revenue from operations on standalone basis was Rs. 326 crores compared to Rs. 127 crores of Q1FY21. The EBITDA for the quarter was Rs. 19 crore as compared to Rs. 1 crore of corresponding quarter. The Net Profit (PAT) for Q1FY22 was Rs. 19 crore as compared to Rs. 2 crore of corresponding quarter.

Standalone Australia: During Q1FY22 revenue from operations from Australia was Rs. 103 crore compared to Rs. 82 crore of QIFY21, registering a growth of 27%. The EBITDA for the quarter was Rs. 12 crore as compared to Rs. 13 crore of corresponding quarter. Net Profit (PAT) was Rs. 3 crore compared to Rs. 4 crore of corresponding quarter.

Standalone Spain: During Q1FY22 revenue from operations from Spain was Rs. 122 crore compared to Rs. 60 crore of Q1FY21, registering a growth of 103%. The EBITDA for the quarter was Rs. 7 crore as compared to Rs. 11 crore of corresponding quarter and the Net Profit (PAT) was Rs. 4 crore compared to Rs. 7 crore of corresponding quarter.

Promoters’ stake was 72.95% as of 30 June 2021 compared to 75.00% as of 30 June 2020.

Consolidated performance for the year ended Mar`21

Net sales (including other operating income) of Sheela Foam has increased 12.04% to Rs 2435.36 crore. Operating profit margin has jumped from 13.82% to 14.88%, leading to 20.61% rise in operating profit to Rs 362.31 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 50.03% to 56.01%. Purchase of finished goods cost fell from 0.83% to 0.74%. Employee cost decreased from 10.13% to 9.49%. Other expenses fell from 25.21% to 18.92%. Other direct service cost fell from 3.25% to 2.42%.

Other income rose 30.23% to Rs 52.08 crore. Provision for interest rose 36% to Rs 17.68 crore. Loan funds rose to Rs 334.22 crore as of 31 March 2021 from Rs 291.48 crore as of 31 March 2020. Inventories rose to Rs 315.31 crore as of 31 March 2021 from Rs 226.86 crore as of 31 March 2020. Sundry debtors were higher at Rs 302.15 crore as of 31 March 2021 compared to Rs 215.78 crore as of 31 March 2020. Cash and bank balance rose to Rs 58.10 crore as of 31 March 2021 from Rs 44.62 crore as of 31 March 2020. Investments rose to Rs 410.61 crore as of 31 March 2021 from Rs 231.43 crore as of 31 March 2020.

Provision for depreciation rose 23.42% to Rs 72.87 crore. Fixed assets increased to Rs 663.39 crore as of 31 March 2021 from Rs 614.13 crore as of 31 March 2020. Intangible assets increased from Rs 254.59 crore to Rs 263.07 crore.

Profit before EO grew 20.67% to Rs 323.84 crore. The company reported nil EO items compared to EO expense of Rs 11.99 crore related to write off of an insurance claim towards the fire in 216-17 in its unit at Greater Noida unit. PBT after EO was up 26% to Rs 323.84 crore.

Provision for tax was expense of Rs 83.69 crore, compared to Rs 62.08 crore. Effective tax rate was 25.84% compared to 24.22%.

Minority interest increased 182.56% to Rs 2.43 crore. Net profit attributable to owners of the company increased 22.90% to Rs 237.72 crore.

Promoters’ stake was 72.95% as of 31 March 2021 compared to 75.00% as of 31 March 2020.

Cash flow from operating activities increased to Rs 260.30 crore for year ended March 2021 from Rs 157.31 crore for year ended March 2020. Cash flow used in acquiring fixed assets during the year ended March 2021 stood at Rs 64.75 crore, compared to Rs 404.94 crore during the year ended March 2020.

The scrip is currently trading around Rs 2268 on the BSE

Sheela Foam : Consolidated Results
Particulars	2106 (03)	2006 (03)	Var.(%)	2103 (12)	2003 (12)	Var.(%)
Net Sales	551.25	268.97	105	2,435.36	2,173.63	12
OPM (%)	6.9	10.4		14.88	13.8
OP	38.27	27.84	37	362.31	300.41	21
Other Inc.	17.86	10.84	65	52.08	39.99	30
PBIDT	56.13	38.68	45	414.39	340.4	22
Interest	4.88	4.12	18	17.68	13	36
PBDT	51.25	34.56	48	396.71	327.4	21
Depreciation	18.54	17.16	8	72.87	59.04	23
PBT before EO	32.71	17.4	88	323.84	268.36	21
EO Income	0	0	-	0	-11.99	-
PBT after EO	32.71	17.4	88	323.84	256.37	26
Taxation	7.59	5.6	36	83.69	62.08	35
PAT	25.12	11.8	113	240.15	194.29	24
Minority Interest (MI)	0.31	0.47	-34	2.43	0.86	183
Net profit	24.81	11.33	119	237.72	193.43	23
EPS (Rs)*	#	#		48.7	41.5
Notes
* EPS is on current equity of Rs 24.39 crore, Face value of Rs 5, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database

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