Flair Writing Industries Limited’s Q1 FY25 results: revenue up but profits plummet—what you need to know

Flair Writing Industries Limited, a prominent player in the writing instruments industry, has disclosed its financial performance for the first quarter of fiscal year 2025, ending June 30, 2024. The company reported modest growth in revenue but experienced declines in profit margins and earnings.

Key Financial Highlights

For Q1 FY25, Flair Writing Industries Limited achieved a revenue of ₹247.1 crores, marking a slight increase of 0.2% from ₹246.7 crores in the same quarter of the previous fiscal year. Despite this growth, the company’s gross profit decreased to ₹122.9 crores from ₹124.6 crores year-over-year, reflecting a decrease in the gross profit margin to 49.7% from 50.5% in Q1 FY24.

The company’s EBITDA fell significantly by 19.7% to ₹42.0 crores, with the EBITDA margin shrinking to 17.0% compared to 21.2% in the previous year. Profit After Tax (PAT) also saw a considerable decline of 18.5%, coming in at ₹26.2 crores with a PAT margin of 10.6%, down from 13.0% in Q1 FY24.

Operational Achievements

During the quarter, Flair Writing Industries Limited introduced a total of 34 new products across its various segments. These included nine new pen designs aimed at mid-premium and premium markets, 16 new items in the creative range such as colouring kits and markers, and nine additional products in the steel bottles and houseware segment.

The company expanded its distribution network by adding 26 new super stockists and increased its retail presence with 30 new geographic locations. This expansion is part of Flair’s strategy to enhance market reach and bolster sales.

Executive Insights

Vimalchand Rathod, Managing Director of Flair Writing Industries Limited, commented on the financial results, highlighting the stability in topline performance amidst domestic demand fluctuations due to election-related slowdowns. He noted a resurgence in demand towards the end of the quarter, with a positive outlook for continued growth. Rathod acknowledged challenges such as rising freight costs and container shortages affecting export markets, but also mentioned encouraging signs of recovery in the Export OEM segment.

Rathod also welcomed Alpesh Porwal as the new Chief Financial Officer, expressing confidence in his ability to provide valuable insights and drive the company’s growth strategy. The outlook for the upcoming quarters remains optimistic, supported by sustained demand and a focus on premiumisation and product innovation.

Company Background

Founded on August 12, 2016, Flair Writing Industries Limited is a leading entity in the writing instruments sector, holding a market share of approximately 9% in India, according to a Crisil report. The company’s flagship brand, “Flair,” has been a household name in India for over 45 years. Flair’s extensive portfolio includes products under the brands “Flair,” “Flair Creative,” “Hauser,” “Pierre Cardin,” and the recently introduced “ZOOX.” In addition to writing instruments, the company also manufactures steel bottles and other houseware items.