Flair Writing Industries Ltd. (FWIL) among the leading players in the overall writing instruments industry has announced its Unaudited Financial Results for the quarter and nine months ended on December 31, 2023.
Steady Revenue Amid Market Challenges:
Revenues: Flair Writing Industries reported revenues of Rs. 224.9 crores in Q3 FY24, indicating a marginal decline of 3.0% compared to Rs. 231.9 crores in Q3 FY23. The slight decrease can be attributed to various market factors and the lingering impact of the pandemic. However, on a sequential basis, the revenue decline was more significant, with a decrease of 12.5% from Rs. 257.0 crores in Q2 FY24. For the nine-month period, the company registered revenues of Rs. 728.6 crores, reflecting a healthy year-on-year growth of 6.8%.
Marginal Growth in Gross Profit:
Gross Profit: Flair Writing Industries' gross profit remained largely stable, standing at Rs. 117.3 crores in Q3 FY24, a negligible increase of 0.1% compared to Rs. 117.2 crores in Q3 FY23. However, there was a noticeable decline of 7.2% from the previous quarter's gross profit of Rs. 126.3 crores. Despite this, the company maintained a healthy gross profit margin of 52.1% in Q3 FY24, indicating efficient cost management and operational resilience.
EBITDA and Profit After Tax:
EBITDA: The company reported an EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of Rs. 34.5 crores in Q3 FY24, marking a decline of 34.9% from Rs. 53.1 crores in Q3 FY23. The decrease in EBITDA can be attributed to various operational factors and market challenges. However, on a positive note, Flair Writing Industries' EBITDA margin remained relatively stable at 15.4% in Q3 FY24.
Profit After Tax (PAT): Flair Writing Industries recorded a PAT of Rs. 19.0 crores in Q3 FY24, representing a decline of 42.9% from Rs. 33.3 crores in Q3 FY23. Similarly, the PAT margin decreased from 14.3% in Q3 FY23 to 8.4% in Q3 FY24. Despite the decrease in profitability, the company managed to maintain a positive bottom line amidst challenging market conditions.
Financial Highlights (9M FY24)
- Consolidated Revenue from Operations grew by 7% YoY to Rs. 729 Crs
- Gross Profit increased by 17% YoY to Rs 368 Crs as margin expanded from 46.2% to 50.5%
- EBITDA improved by 8% YoY and reached Rs. 141 Crs at an EBITDA margin of 19.3%
- PAT stable at Rs. 84.3 Crs thus PAT margin at 11.6%
Operational Highlights for the quarter
- Introduced 30 new products across different brands during the quarter, year to date we have 804 products in our portfolio
- Widened our distribution base by adding 11 super stockist in Q3FY24. Total count now stands at 156 super stockists.
- Sales and Marketing Team strengthened with 36 new personnel added to the previous headcount of 906.
Commenting on the Results, Mr. Vimalchand Rathod , MD said, - "The quarter was a mixed bag with challenges on the OEM front and positives in our brands as we took some important business decisions. Revenue from our own brands remained our shining stars growing in both domestic & exports market throughout the year. Majority of our own brands experienced double digit growth; year to date, in domestic market thus going from strength to strength. The quarter was particularly well for Pierre Cardin & Hauser as customers continued to choose us as a quality & premium gifting option during the festive seasons. With 30 new product launches during the quarter, we have now crossed the milestone of adding more than 100 new products for 9MFY24 and is the largest increase in our portfolio since FY21.
We remain very upbeat on the prospects of our steel bottles segments and to this effect we have decided to enter the domestic market through modern trade and the initial response looks very promising. We've also applied for BIS license for our steel bottles and are awaiting results for the same.
With our OEM partners experiencing macroeconomic headwinds in the western economy , muted domestic demand combined with Red Sea crisis; it meant our OEM & export segment were affected due to lack of underlying demand. However, we are confident that this situation is transient in nature and remain hopeful of their demand revival in the upcoming quarters.
We have a renewed sense of focus for driving overall business in our domestic and export markets through new tie-ups, business model, channel fill & expansion as well as backward integration of market accepted products. We've set our eyes towards new horizons in exports and are actively exploring avenues for growth in these markets. We remain steadfast on our vision to be the go-to brand for writing and creative product across consumer age and preference; building on the goodwill and trust garnered over the years.
Shares of Flair Writing Industries Limited was last trading in BSE at Rs. 323.05 as compared to the previous close of Rs. 325.55. The total number of shares traded during the day was 13132 in over 683 trades.
The stock hit an intraday high of Rs. 328.10 and intraday low of 318.30. The net turnover during the day was Rs. 4238145.00.