Key Highlights

As per the management, Dec'16 quarter was one of the most turbulent quarters that the company has witnessed ever.

Raw material price fluctuations were severe during the quarter. Demonetisation impact was severe on Northern part of the country where the company has major markets. Impact of demonetisation was severe on unorganised players and the company was able to gain some market share as well during this period.

Oct'16 month reported revenue of around Rs 160 crore as compared to Rs 125 crore for Oct'15. Revenues from Nov'16 and Dec'16 month were almost flat on YoY basis. There was more or less an equal kind of growth for almost all brands of the company.

The company took some price increase in Nov'16 of around 7% to overcome raw material price increases. All these efforts led to an overall increase in net sales of 9% for the sales of the company in Dec'16 quarter to Rs 486 crore.

Australian revenue was lower by around 3% in Dec'16 quarter while PAT was more or less flat on YoY basis during Dec'16 quarter. In Australia, the company caters to the furniture and bedding industry while other industries like chemicals which the company was catering earlier, is not doing well.

The new product line will be launched in Mar'17 quarter which is of premium category and management is very optimistic about future.

TDI, one of the major raw materials for the company saw severe movements during Dec'16. The company buys its requirements from GNFC or has option to import from Korea. Prices now are stable but are relatively high. Polygons another raw material was more or less flat on YoY basis.

Worldwide TDI and polygons new capacities are coming up in next 6-8 months and there is not that much significant demand coming up for these products. Hence, overall management expects the prices to come down going forward.

The company was able to open 275 exclusive company showrooms and total showrooms as on Dec'16 stood at 2500.

The company has initiated process of bringing the brand Sleepwell under Sheela Foam. The same will take place in next 12 months.

GST will auger well for the company and the company its vendors, distributors and retailers all are gearing up for GST.

Management expects future to be very optimistic and lot of reforms will help the company to increase its market share in India.