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Fragrance and flavour manufacturer SH Kelkar & Company's sales excluding acquisitions increased 7 percent during the September quarter to Rs 412 crore.

However, net debt increased to Rs 503 crore from Rs 469 crore in the June quarter, as the company increased its stake in Holland Aromatics by acquiring another 19 percent stake in the company. The remaining stake will be acquired in the next financial year.

The company's quarterly topline is inclusive of the Rs 36 crore it earned from Holland Aromatics and NuTaste.

SH Kelkar highlighted the challenging operating environment in Europe due to ongoing macroeconomic challenges while stating that demand in emerging markets remained steady. A quarter of its fiscal year 2022 revenue came from Europe.

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

Meanwhile, SH Kelkar’s participation in the Request for Proposal by a global FMCG MNC is progressing well. The company’s teams of master perfumers are working on multiple briefs across various brands and product categories, according to the filing. The company remains optimistic about the multi-year business potential of this global tender.

Shares of SH Kelkar & Company are trading 1.8 percent lower as of 12:40 PM at Rs 145.80.

(Edited by : Rukmani Krishna)

First Published:Oct 10, 2022 12:53 PM IST