Bengaluru, February 3, 2025
Stove Kraft Limited has released its standalone unaudited financial results for the quarter and nine months ended December 31, 2024. The results were approved by the company's Board of Directors in a meeting held on February 3, 2025.Key Financial Highlights (INR Millions)
| Particulars | Q3 FY25 | Q2 FY25 | Q3 FY24 | 9M FY25 | 9M FY24 | FY24 (Audited) |
|---|---|---|---|---|---|---|
| Revenue from Operations | 4,040.63 | 4,183.09 | 3,615.93 | 11,368.25 | 10,391.05 | 13,643.30 |
| Total Income | 4,039.82 | 4,164.53 | 3,601.83 | 11,359.11 | 10,396.38 | 13,643.86 |
| Total Expenses | 3,890.60 | 3,946.02 | 3,502.68 | 10,882.11 | 9,963.17 | 13,188.35 |
| Profit Before Tax | 149.22 | 218.51 | 99.15 | 477.00 | 433.21 | 455.51 |
| Net Profit | 121.39 | 167.17 | 67.55 | 370.57 | 314.78 | 341.35 |
| Earnings Per Share (INR) - Basic & Diluted | 3.67 | 5.06 | 2.04 | 11.21 | 9.53 | 10.30 |
- Revenue Growth: Stove Kraft reported revenue from operations of INR 4,040.63 million in Q3 FY25, reflecting a 11.76% YoY increase compared to INR 3,615.93 million in Q3 FY24.
- Net Profit Growth: The net profit for Q3 FY25 stood at INR 121.39 million, an increase of 79.67% YoY from INR 67.55 million in Q3 FY24.
- Sequential Decline: Compared to the previous quarter (Q2 FY25), revenue dipped by 3.41%, and net profit declined by 27.38%.
Expense & Profitability Overview
- Cost of materials consumed: INR 2,378.83 million, accounting for 60% of total revenue.
- Employee expenses: INR 459.81 million, maintaining a stable cost structure.
- Depreciation & amortization: INR 181.43 million, showing marginal variations.
- Finance costs: INR 73.93 million, reflecting controlled debt servicing costs.
Corporate & Strategic Updates
Trading Window Closure & Reopening
- The trading window for insiders was closed from December 30, 2024, and will reopen on February 6, 2025.
Taxation & Regulatory Developments
- The Income Tax Department conducted search operations at Stove Kraft’s business premises in November 2023.
- Subsequent notices under Sections 148 and 142(1) of the Income Tax Act, 1961, were received on March 15, 2024, November 5, 2024, December 6, 2024, and December 31, 2024.
- The company has filed revised tax returns for AY 2020-21 and is in the process of filing for AY 2019-20.
- Management has assessed no material financial impact from these proceedings.
Management Commentary
Rajendra Gandhi, Managing Director, stated:"We continue to focus on driving operational efficiency and expanding our product portfolio. The revenue growth and improved profitability on a YoY basis reflect our strategic initiatives in the kitchen and home appliances segment. Despite a sequential decline, we remain confident in achieving long-term sustainable growth."
Outlook & Investor Considerations
- Strong YoY growth in revenue and profitability underlines the company’s resilience in consumer durables.
- Short-term headwinds, including sequential revenue dip, may indicate temporary demand fluctuations.
- Regulatory scrutiny from tax authorities remains a key factor to monitor, though the company does not foresee any material impact.
- Stockholders can expect trading window reopening on February 6, 2025.