S H Kelkar and Company Ltd Q3 FY25 Concall Summary & Key Takeaways (SHK)

S H Kelkar and Company Ltd (SHK) Q3FY25 Concall Summary - Dec-2024 Qtr

SH Kelkar & Co Ltd reported robust revenue growth for the nine months of FY25, reaching Rs. 1,556 crore, a 17% year-on-year increase. This strong performance was driven by steady traction across all segments, especially small and mid-sized accounts, despite subdued demand in the domestic FMCG industry. The company's ability to cater to a diverse customer base, ranging from large global corporations to emerging smaller players, has been a significant advantage.

The European segment also performed well, with core business revenues growing by 11.8% on a like-for-like basis. Steady demand in key international markets, supported by a strong product mix and favourable regional dynamics, contributed to this growth. Europe remains a high-potential market, and strategic investments are being made to enhance market presence and share.

The Flavour segment experienced healthy revenue growth, recovering strongly from a low base in the previous year. This recovery was supported by improved market conditions, increased customer engagement, and enhanced operating efficiency, leading to healthy profitability.

The Global Ingredients segment continued its turnaround, driven by structural initiatives like backward integration and a focus on operational optimization and efficiency. Favourable global export conditions from India present opportunities to accelerate growth in this segment.