This is a considerable improvement on the first quarter of the year, when coronavirus shutdowns hit sales. These were down 46%, while EBITDA was down by 55% compared with the 2019 numbers.
The improved performance in the quarter diluted the slow start to the year, but could not wash it away. In the half, consolidated sales were down 13.3% to INR87.7m, but the company managed a 1% increase in EBITDA to INR13.4m.
Sheela provided details of its production in the first half of 2020. At 697,000 units, mattress production was down by 6.4% on the first half of 2019. The company also produced 37.5% less foam for furniture, cores and technical applications.
Like other flexible foam makers, Sheela> complained of suddenly high prices because of upstream production problems. Since the quarter closed, the company said the price it pays for TDI has increased by 64% above its average price in the quarter. Average polyol prices have risen by 93% in the same timeframe.
Looking in more detail at the quarterly numbers, sales in India rose by 3.2% to INR42.4m between the second quarter of 2019 and the second quarter of 2020. This compares with INR41.1m in the equivalent period in 2019.
EBITDA in the division rose by 8.6% to INR6.3m, compared with INR5.8m in the 2019 period.
Sales at Joyce Foam, the company's Australian business, rose 19.5% between the second quarter of 2019 and the second quarter of 2020. The INR10.4m in the 2020 quarter compares with INR8.7m in the equivalent period last year.
EBITDA in the division rose 75.0% to INR2.1m in the second quarter of 2020. This compares with INR1.2m in the equivalent period in 2019.
Sheela bought Interplasp of Spain in 2019, and quarterly comparisons are not available. In the second quarter of this year, sales reached INR8.2m. Quarterly EBITDA was INR2m.
Sheela has yet to activate its Sleepex company in the US. This was founded earlier this year. However, the report said that no capital or operations were recorded for the business in the quarter.