New Delhi, India — Consolidated sales at Sheela Foam rose by 8.6% to INR 9.44 bn ($ 146 m) in the first half of its 2018 financial year.
However, the cost of materials rose 16.8% to INR 4.8bn in that half, from INR 4.1bn in the first half of 2016. The company reported a profit before tax of IRN 913 m in the 2017 half, compared with INR 951 in the first half of 2016.
Sheela said that the TDI price had accelerated in the second quarter, rising by 31%. This offset benefits from the reduced amount of excise duty paid on the sale of products, from INR 715 m in the first half of 2016 to INR 391 m in the first half of 2017 — a drop of 45%.
The company experienced a growth in revenue from INR 4.21 bn in the 2016 quarter to INR 4.86 bn which, Sheela said, ‘was achieved despite the subdued demand in the months of July and August due to the implementation of GST’.
Sheela said that revenue from Joyce foam, its Australian operation, of INR 770m in the quarter was up INR 30m on the second half of 2016.
Trial sales of the Sheela’s Starlite economy model mattress, launched in Northern India, had been successful, and that it will be introduced into other parts of India over the remainder of the financial year, the company added.