Mumbai, February 5, 2025 – Nilkamal Limited (BSE: 523385, NSE: NILKAMAL) announced its financial results for the third quarter and nine months ended December 31, 2024. The company recorded revenue growth but faced a decline in profitability due to higher expenses and increased promotional spending.
Key Financial Highlights (Standalone)
Quarterly Performance (Q3FY25 vs. Q3FY24)
- Revenue: ₹832 crores, up 6% YoY from ₹782 crores.
- EBITDA: ₹60 crores, down 14% YoY from ₹70 crores.
- Profit Before Tax (PBT): ₹19 crores, a 37% decline from ₹31 crores.
- Net Profit (PAT): ₹15 crores, down 37% YoY from ₹23 crores.
- Earnings Per Share (EPS): ₹10, compared to ₹15 in Q3FY24.
Nine-Month Performance (9MFY25 vs. 9MFY24)
- Revenue: ₹2,363 crores, up 2% YoY from ₹2,314 crores.
- EBITDA: ₹193 crores, down 8% YoY from ₹210 crores.
- PBT: ₹75 crores, down 22% YoY from ₹96 crores.
- PAT: ₹57 crores, down 21% YoY from ₹72 crores.
Segment-Wise Performance
Business-to-Business (B2B)
- Revenue: ₹735 crores in Q3FY25, up 8% YoY from ₹681 crores.
- Volume Growth: Declined by 1% YoY.
- Material Handling Solutions: Grew 5% YoY.
- Mattress Business: Expanded 46% YoY, reaching ₹34 crores.
Retail & E-commerce
- Revenue: ₹97 crores in Q3FY25, down from ₹101 crores in Q3FY24.
- E-commerce Sales: ₹42 crores, up 6% YoY.
- Store Network: Reorganized to 98 stores, affecting revenue but supporting long-term growth.
Consolidated Financial Performance
- Revenue: ₹854 crores in Q3FY25, compared to ₹803 crores in Q3FY24.
- PAT: ₹22 crores, down from ₹29 crores in Q3FY24.
Subsidiary & Joint Venture Performance
- Sri Lankan Subsidiary (Nilkamal Eswaran Plastics): Strong revenue growth.
- Nilkamal Eswaran Marketing (Sri Lanka) & Nilkamal Crates and Bins (UAE): Mixed performance.
- Cambro Nilkamal (US Joint Venture): Continued revenue growth with expanded product offerings.
Strategic Developments
- Retail Rebranding: Retail division rebranded as Nilkamal Homes under the parent Nilkamal brand.
- Expansion of Distribution: The company expanded its presence to 1,555 Large Format Outlets (LFO), Multi-Brand Outlets (MBO), and Exclusive Brand Outlets (EBO), adding 487 new locations.
- Marketing Investments: Advertising and sales promotions rose to ₹30.86 crores in Q3FY25, up ₹19.44 crores YoY.
- Capex Spending: ₹61 crores in Q3FY25; ₹233 crores for 9MFY25.
- New Manufacturing Expansion: Rigid Packaging production started at Puducherry; commercial production at Hosur set for Q4FY25.
- Net Borrowings: Increased to ₹349 crores as of December 31, 2024, from ₹308 crores in September 2024.
Management Commentary
Hiten Parekh, Managing Director, stated:"Despite macroeconomic headwinds, our B2B segment continues to deliver growth. The strategic expansion of our retail and e-commerce presence, along with our focus on brand-building and product innovation, will support long-term performance."
Paresh Mehta, CFO, added:
"We have increased our investments in marketing and store network restructuring, which has impacted short-term profitability but will drive future growth. Our Capex initiatives and operational expansions are aligned with our growth vision."
Outlook
- Continued expansion in mattress and material handling solutions.
- Strengthening of omnichannel retail presence.
- Increased investment in branding and promotions.
- Further manufacturing capacity enhancements.
Stock Performance Impact:
With revenue growth but declining profits, investor sentiment may hinge on long-term execution strategies. Analysts will closely monitor the company's ability to improve margins while sustaining growth.