On a like-to-like basis, excluding acquisitions revenues grew by 7% YoY at constant currency. Emerging market sales stood at Rs 331 crore, registering organic growth of 12% on a YoY basis.

The company said that emerging markets witnessed steady demand sentiments during the quarter. The operating environment in the European markets was subdued due to ongoing macroeconomic challenges.

The company's profitability was moderately impacted due to higher input costs and adverse currency movement. SHK has been undertaking price hikes to mitigate the impact of inflationary pressures especially witnessed in the European markets.

The company further informed that its participation in the RFP (Request for Proposal) by a large global FMCG MNC is seeing healthy progress with the company's team of master perfumers working on multiple briefs across various brands and product categories.

"The Company is now among the MNC's global supplier base and is seeing a steady stream of leads and remains optimistic on the significant multi-year business potential from this global tender,” SHK said.

On the balance sheet front, the company's net debt position stood at approximately Rs 503 crore as on 30 September 2022 as against Rs 469 crore as on 30 June 2022.

The increase in debt was on account of outflow for acquiring the second tranche of 19% stake in Holland Aromatics. Following this recent transaction, SHK holds 81% of the company and will acquire the remaining stake in the next fiscal.

S H Kelkar and Company (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.

The company's consolidated net profit declined 73.49% to Rs 21.60 crore despite a 15.92% rise in sales to Rs 411.39 crore in Q1 FY23 over Q1 FY22.

The scrip rose 0.37% to end at Rs 148.70 on the BSE yesterday.