Flair Writing Industries Q4 PAT up 3.4%, EBITDA falls 5.4%

The company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the fourth quarter came in lower by 5.4% at ₹50.5 crore. The EBITDA margin contracted by 31 basis points (bps) YoY to 20.2%. The net profit margin for the quarter expanded by 97 bps YoY to 13.7%.

In FY24, the company’s net profit grew by 1.2% YoY to ₹118.5 crore. The consolidated revenue during the year rose by 3.8% YoY to ₹978.7 crore. EBITDA for the year grew by 4.2% YoY to ₹191.2 crore while the EBITDA margin rose 7 bps YoY to 19.5%. Net profit margin for the financial year contracted by 31 bps YoY to 12.1%.

In FY24, Flair Writing Instruments’ own brand contributed 86% of the company’s revenue while the OEM segment contributed 14%. Meanwhile, 81% of the revenue came from domestic markets and 19% came through exports during the year.

Vimalchand Rathod, managing director of Flair Writing Industries said capacity expansion plans in writing instruments have been set into motion with the commencement of construction of a new factory building in Valsad and once operationalised, it will provide further impetus to growth.

He also stated the company has signed a licensee agreement with Disney to brand their characters on their stationery, and arts and crafts products.

“Overall pens segment continues to grow across all brands, the creative segment continued their higher double-digit growth rate of about 28 % and the steel bottles segment has started making breakthroughs in the market,” he said.

The company has also launched a steel bottle business and indicated that the products are now available in modern trade and general trade.

Flair Writing Industries was incorporated in August 2016. The firm claims to be among the top-3 players in the overall writing instruments industry with a market share of approximately 9% in the overall writing and creative instruments industry in India, as of March 31, 2023. The company is also present in the manufacturing of steel bottles and other house-ware products.

Shares of the company have declined by nearly 12% since the beginning of the year. The stock has lost over 32% in the last one year.