Sheela Foam Ltd

Sheela Foam announced that an Extra Ordinary General Meeting (EGM) of the Company will be held on 28 April 2025.Powered by Capital Market - Live

The agency has, meanwhile, assigned 'IND A1+' rating at the company's short-term debt facilities. India Ratings and Research stated that the rating affirmation reflect SFL's strengthened market position in the Indian organised mattress segment, led by a much larger scale of operations in terms of revenue and profitability as well as an improved distribution reach post-acquisition of Kurlon Enterprises Limited (KEL; mattresses manufacturing company). India Ratings has taken note of the delays in the realisation of synergies at SFL's level post-acquisition of KEL along with a slower run rate observed in revenue as well as EBITDA level than Ind-Ra's expectations. This had led to elevated credit metrics during 9M FY25, slightly higher than India Ratings' expectations for FY25. However, India Ratings derives its comfort from the synergies likely to come in over FY26, leading to better cash generation and net leverage reducing below 1.5x by end-FY26; along with the company's adequate liquidity position to cover its debt obligations over FY26-FY27. The agency further said that a significant improvement in the revenue as well as profitability while reducing the consolidated net leverage below 1.0x could be positive for the ratings. However, a decline in the revenue and profitability or an elongation of the net working capital cycle on a sustained basis and any significant debt-funded acquisition, leading to the consolidated net leverage remaining above 1.5x beyond FY25 on a sustained basis could lead to a negative rating action. Sheela Foam is a leading manufacturer of PU foams in Asia Pacific. The company has secured a dominant position in key industries such as mattresses, automotive, footwear, lingerie, and furniture. The company specialises in the production of a diverse range of foam-based home comfort products, such as mattresses and furniture cushions. The scrip rose 1.65% to currently trade at Rs 766.70 on the BSE. Powered by Capital Market - Live

Sheela Foam has received credit rating from CRISIL at Crisil AA-/Stable for long term bank facilities of Rs 163.27 crore. Powered by Capital Market - Live

Sheela Foam announced that CRISIL Ratings has revised the ratings of Long-Term Outstanding Bank Loan Facilities of Sheela Foam to 'CRISIL AA-/Stable'. Powered by Capital Market - Live

However, revenue from operations jumped 10.03% to Rs 967.11 crore in Q3 FY25 as against Rs 878.89 crore reported in the corresponding quarter last year. Profit before tax stood at Rs 21.21 crore in Q3 FY25, down 59.90% as against Rs 52.90 crore reported in Q3 FY24. EBITDA was at Rs 88 crore in Q3 FY25, registering growth of 15% YoY from Rs 76 crore posted in Q3 FY24. EBITDA margin remained the same at 9% in Q3 FY25, compared to 9% recorded in the corresponding quarter of the previous year. On the segmental front, revenue within India stood at Rs 782.54 crore in Q3 FY25, up 14.60% year on year. Revenue outside India was at Rs 184.57 crore in Q3 FY25, down 5.86% year on year. Sheela Foam pioneered in the manufacturing of polyurethane foams in India and has ten manufacturing facilities, using state-of-the-art technology at strategic locations across the country. Shares of Sheela Foam shed 0.04% to Rs 916.75 on the BSE. Powered by Capital Market - Live

Net profit of Sheela Foam declined 38.97% to Rs 18.78 crore in the quarter ended December 2024 as against Rs 30.77 crore during the previous quarter ended December 2023. Sales rose 10.04% to Rs 967.11 crore in the quarter ended December 2024 as against Rs 878.89 crore during the previous quarter ended December 2023. ParticularsQuarter EndedDec. 2024Dec. 2023% Var. Sales967.11878.89 10 OPM %9.088.67 - PBDT66.5682.82 -20 PBT21.2152.90 -60 NP18.7830.77 -39 Powered by Capital Market - Live

Net profit of Sheela Foam declined 19.32% to Rs 24.93 crore in the quarter ended December 2024 as against Rs 30.90 crore during the previous quarter ended December 2023. Sales rose 54.12% to Rs 791.21 crore in the quarter ended December 2024 as against Rs 513.36 crore during the previous quarter ended December 2023. ParticularsQuarter EndedDec. 2024Dec. 2023% Var. Sales791.21513.36 54 OPM %9.0110.36 - PBDT57.5557.15 1 PBT34.1942.44 -19 NP24.9330.90 -19 Powered by Capital Market - Live

Sheela Foam will hold a meeting of the Board of Directors of the Company on 31 January 2025.Powered by Capital Market - Live

However, revenue from operations jumped 32.54% to Rs 812.75 crore in Q2 FY25 as against Rs 613.18 crore reported in corresponding quarter last year. Profit before tax stood at Rs 24.91 crore in Q2 FY25, down 58.58% as against with Rs 60.15 crore reported in Q2 FY24. EBITDA was at Rs 69 crore in Q2 FY25, registering growth of 4% YoY from Rs 66 crore posted in Q2 FY24. EBITDA margin reduced to 9% in Q2 FY25 as compared to 11% recorded in the corresponding quarter previous year. On half year basis, the company's net profit declined 36.16% to Rs 55.93 crore on 28.94% increase in revenue from operations to Rs 1,622.48 crore in H1 FY25 over H1 FY24. Sheela Foam pioneered in the manufacturing of polyurethane foams in India and has ten manufacturing facilities, using the state of the art technology at strategic locations across the country.Powered by Capital Market - Live

Net profit of Sheela Foam declined 77.68% to Rs 9.81 crore in the quarter ended September 2024 as against Rs 43.96 crore during the previous quarter ended September 2023. Sales rose 32.54% to Rs 812.72 crore in the quarter ended September 2024 as against Rs 613.18 crore during the previous quarter ended September 2023. ParticularsQuarter EndedSep. 2024Sep. 2023% Var. Sales812.72613.18 33 OPM %8.5210.79 - PBDT72.7882.02 -11 PBT24.9160.15 -59 NP9.8143.96 -78 Powered by Capital Market - Live