SH Kelkar and Company Limited, the largest Indian origin fragrance and flavours company, on Monday said that it was looking at a price increase of anywhere between 6-8 percent in the coming quarter.

“We believe that towards May, June, the prices should start to come down from the current levels and we have covered inventory till then. This allows us time to pass on the cost increases to our customers as we discuss with them the outlook for this year. However, it depends on the next 10-12 days in terms of the pandemic and the inflation or shortages. But we are looking at anywhere between 6-8 percent of price increases in the coming quarter,” said Kedar Vaze, Group CEO of the company.

The company's Q4 revenues came in higher by 22 percent year-on-year (YoY). It recently also completed acquiring 70 percent equity stake in Italy-based Nova Fragranze.

Speaking to CNBC-TV18, Vaze said that the company has grown both quarter-on-quarter (QoQ) as well as YoY in Q4. He also said that the company will continue to have a CAGR of 12-13 percent.

“We are now in the gliding path that we had put out last year. We continue to grow at 12-13 percent CAGR growth, gross margins around 43 percent, and we will see the bottomline EBITDA level between 19 and 20 percent if we continue to keep this growth rate," he said.

“Normally Q4 is the strongest quarter and the first quarter is slightly weaker than the Q4. But we will still see continued growth quarter on quarter; I think 3-4 percent QoQ growth is something we plan for as a minimum,” said Vaze.

According to him, the company is not seeing any supply side problems so far and international business demand also remains strong. The company is also looking to reduce debt by Rs 30-35 crore every quarter.

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(Edited by : Niral Sharma)