Sheela Foam Reports 42% Revenue Growth in Q2 with Strong Margins

Sheela Foam Limited, the leader in manufacturing of best quality PU Foam in India with flagship brands, Sleepwell and Kurl-on, reported its financial results for the second quarter and half year ended 30th September 2024. The results showcased robust growth across all its segments, including enhanced profitability from post-acquisition synergies. The integration of Sleepwell and Kurl-on under the Sheela Group is now stabilizing with synergy benefits of more than Rs. 100 crs per annum flowing to the bottom-line. Streamlined operations, expanded market reach, and optimized resource utilization have enabled Sheela Group to create real value, strengthening its foundation to provide even greater returns for its customers and stakeholders in the sleep industry. 

Financial Highlights for Q2 (incl. Kurl-on for Q2FY24): 

• Mattress Volumes witnessed an increase of 19% YoY 
• Sleepwell brand grew by 40% on a YoY basis whereas Kurl-on brand grew 26% on a YoY basis 
• Foam Volume saw an uptick by 11% YoY with deeper penetration in industries like automotive, footwear, lingerie, and ancillary markets 

Financial performance - Standalone 

For the second quarter on a standalone basis, Sheela Foam reported revenues of INR 602 crores, reflecting a year-on-year increase of approximately 42%. EBITDA for the quarter was INR 70 crores, with a year-on-year increase of 54%, with margins at 11.7%. Net profit stood at INR 43 crores, registering a growth of about 12% from the previous year. 

The second quarter also saw the launch of advanced, technologically differentiated products, including the Spinetech, Orthomagic, and Pro FitRest mattresses, recommended by the Indian Association of Orthopaedic Surgeons and the Indian Association of Physiotherapists. This successful brand integration achieved a remarkable YoY volume growth of 19% in Q2FY25 in the mattress segment, driven by a vast distribution network with over 20,000+ touchpoints nationwide, including both exclusive dealers and multi-brand outlets, thus expanding the brand footprint across the country. Other business segments, such as furniture cushioning, Comfort Foam, and Technical Foam, also saw volume gains across industries like automotive, footwear, lingerie, and ancillary markets, contributing to overall business growth. 

Mr. Rahul Gautam, Executive Chairman, Sheela Foam Limited, stated, “Both Sleepwell and Kurl-on brands have entered their desired orbits, showing impressive volume growth in Q2FY25 while maintaining strong margins. We remain committed to delivering customer-centric innovation across all areas of our business.” 

Mr. Tushaar Gautam, MD, Sheela Foam Limited, added, “We have unlocked additional value by optimizing costs post-integration, resulting in an adjusted EBITDA nearing 10% for Q2FY25 of India business, primarily driven by synergies across raw material, logistics, and manpower rationalization.”