Flair Writing Industries (FLAIR) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 revenue reached INR 270 crores (₹27,013.15 lakhs), up 5.1% year-on-year, with gross profit at INR 143 crores and PAT at INR 33 crores (₹3,276.81 lakhs), reflecting strong growth.

• Pen segment contributed 79% of revenue, with Hauser and Pierre Cardin brands showing strong double-digit growth.

• Steel bottles segment saw a 248% year-on-year increase, surpassing FY24 full-year revenue in H1 FY25.

• Completed IPO, raising ₹27,303.72 lakhs, with proceeds allocated to expansion, capex, working capital, and debt repayment.

• Maintains market leadership as a top 3 player in writing instruments, with a diversified portfolio and global export presence.

Financial highlights

• Q2 FY25 gross profit margin improved to 52.8%, aided by easing input costs and premium product mix.

• Q2 FY25 EBITDA was INR 51 crores, down 6% year-on-year but up 20.4% sequentially; EBITDA margin at 18.7%.

• Q2 FY25 PAT at INR 33 crores (₹32.8 Cr), stable year-on-year; H1 FY25 PAT at INR 59 crores, down 9.7% year-on-year.

• Cash and cash equivalents increased to ₹16,410.27 lakhs as of September 30, 2024.

• Maintains net debt negative balance sheet; equity base increased to ₹957.6 Cr as of Sept 2024.

Outlook and guidance

• Management reiterated annual revenue and margin guidance, targeting 11%-12% CAGR and 19%-20% EBITDA margin.

• Second half expected to outperform first half, with new product launches and recovery in exports supporting growth.

• Creative segment expected to return to 25%+ growth from Q3 onwards as supply issues are resolved.

• IPO proceeds are being deployed for capacity expansion, capex, and working capital, supporting future growth.

• On track to achieve full-year guidance for steel bottles segment, with export revenue expected to start next year.