Flair Writing Industries (FLAIR) Q1 24/25 earnings summary

Executive summary

• Revenue from operations for Q1 FY25 was ₹247.1 cr (₹2,471.36 million), stable year-over-year and slightly down sequentially.

• Own brand sales grew 5% YoY, with strong performance in creative and steel bottle segments.

• Premiumisation strategy advanced, with 7 of 9 new pens launched in premium categories.

• Profit after tax for the quarter was ₹26.2 cr (₹262.08 million), down from the previous quarter and YoY.

• IPO completed, raising ₹273.04 cr (₹2,730.37 million) for expansion, capex, working capital, and debt repayment.

Financial highlights

• Gross profit margin at 49.7% in Q1 FY25, slightly lower than 50.5% in Q1 FY24.

• EBITDA at ₹42.0 cr, down 19.7% YoY; EBITDA margin at 17.0% vs 21.2% YoY.

• PAT at ₹26.2 cr, down 18.5% YoY; PAT margin at 10.6% vs 13.0% YoY.

• EPS for the quarter stood at ₹2.51, compared to ₹3.52 in the previous quarter.

• Paid-up equity share capital as of June 30, 2024, was ₹526.98 million.

Outlook and guidance

• Continued optimism for own brand sales and creative segment growth, with Disney collaboration expected to boost Q2 FY25.

• Steel bottle segment expected to scale up further, leveraging BIS certification and in-house manufacturing.

• Capex plans on track, with ₹28 cr incurred in Q1 FY25 and further investments planned for capacity expansion.

• Unutilized IPO proceeds of ₹1,284.40 million as of June 30, 2024, are temporarily invested in fixed deposits, with planned utilization for expansion and working capital.