New Delhi, India — Consolidated sales at Sheela Foam rose by 9.9% to INR 10.4 bn ($ 144m) in the first half of its 2019 financial year.
Compared to the first half of the financial year which ended in 2018, the rate of increase in raw materials costs slowed. The rise to INR 5.7bn of was 12.7% compared to the first half of the earlier year. Then prices rose 16.8% to INR 4.8bn.
Higher prices fed through to the pre-tax profit figures. The company reported a profit before tax of INR 813 m in the 2019 half, compared with INR 913 in the first half of 2018.
Over the first half of the year, income from Joyce Foam, Sheela's Australian subsidiary, fell by 16.75% on the 2018 half. It reached INR 1.6bn in the first half of 2019, compared with INR 1946bn in first half of the earlier year.
Looking at the second quarter numbers, sales were INR 5.3bn for the group, up 5.7% on the 4.3bn recorded in the second quarter of 2018. But pre-tax profit for the group was down 21%, at INR 360m, in the second quarter of 2019.
Management said that within India, it has spent more on advertising in its store network and that this has temporarily hit earnings.
Sheela said the price of TDI fell in the quarter from INR 295/kg at the start to INR 250/kg by the end of the quarter. It added that it expects this softening trend to continue in the coming months.
|Sheela Foam H1 2019 consolidated numbers (INR m)|
Half to Half
Half to Half
|Source: Sheela Foam|