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Earnings Call Transcript

Flair Writing Industries Earnings Call Transcript: Key Takeaways

Flair's Q2 was hit by severe flooding in Vapi and Daman, causing a ₹25 Cr revenue loss. Management lowered FY27 revenue guidance from 15% to 12% amid geopolitical tensions in West Asia impacting exports.

Guidance and delivery
Management target Revenue 12.0% FY27
Highlights
Revenue growth6.5% QoQ to ₹340.1 Cr; ₹25 Cr lost to flooding.
MarginsEBITDA margin contracted to 14.9% vs 16.7% QoQ on high input costs.
Demand visibilityStrong domestic demand; creative products segment grew 24% in H1.
Management confidenceBalanced; transparent about weather disruptions but optimistic on H2 seasonality.

Growth

Revenue grew 6.5% QoQ to ₹340 Cr. Domestic sales rose 6% QoQ while exports grew 13% QoQ despite logistics hurdles.

Outlook

Management targets 12% revenue growth for FY27 and 15% YoY from FY28 onwards, supported by new steel bottle capacity.

Risks

Elevated raw material costs and West Asia instability pressure margins. Inventory days rose to 104 due to strategic stocking.

Last quarter's promises, checked

Delivered

  • Guided export growth resuming → exports +13% QoQ (= BEAT)

Partly delivered

  • Guided high-single-digit Pen growth → Pens +5% QoQ, YoY not given (= PARTIAL)

Missed

  • Guided FY27 revenue +15% → cut to +12% (= MISS)
  • Guided FY27 EBITDA margin 17-18% → Q2 EBITDA margin 14.9% (= MISS)
  • Guided Creative+Steel Bottles ~40% growth → Creative +24% in H1 (= MISS)
Source

Earnings Call Transcript filed with NSE, NSE: FLAIR. Summary written with AI assistance from the document.

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Flair Writing Industries Ltd: key numbers

Share price
₹235.52
Market cap
₹2,482 Cr
Revenue (annual)
₹1,250 Cr
Net profit (annual)
₹139.8 Cr
P/E (TTM)
19.3×Sector 45.0×
Promoter holding
78.59%+0.00% QoQ
FII holding
0.88%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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