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The Company continued to maintain healthy margins through improved efficiencies as well as calibrated price increases without any adverse effect on volumes and market share | TTK Prestige Q3 FY22 Conference Call Highlights

The Company continued to maintain healthy margins through improved efficiencies as well as calibrated price increases without any adverse effect on volumes and market share | TTK Prestige Q3 FY22 Conference Call Highlights

Published on 04 February 2022 .Views 0 .Comments 0
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  • Domestic Sales grew by 5% from Rs 662.33 Crores to Rs 694.61 Crores on a much larger base of the previous year Q3 which was much higher than pre Covid levels. Export Sales for the quarter grew by 44% from Rs 17.08 Crores to Rs.24.51 Crores. Total Sales grew by 6% from Rs 679.41 Crores to Rs 719.12 Crores.
  • EBITDA was at Rs 130.96 Crores as compared to Previous year (PY) Rs 126.64 Crores: a growth of 3.4%. EBITDA margin was around 18.2% (PY 18.6%). Profit before Tax: Rs 118.87 Crores (PY Rs 115.64 Crores); a growth of 2.8%. Profit after Tax: Rs 88.65 Crores (PY: Rs 86.53 Crores); a growth of 2.5%
  • Due to early Diwali the Primary Sale having taken place in September 21 itself, the primary off-take in Q3 was moderate especially during November and December.
  • During the quarter all the channels were active. Off-line channels became robust. Online sales is 18%.
  • 600+ exclusive stores forming 11-13% of the revenue and occupies nearly 3 lakh sqft area.
  • Stainless steel and anodised cookers form 40% of the total cookers sales.
  • Aluminium non-stick cookware forms 85% of the cookware category sales.
  •  Rural sales is 5% of the total sales which the company is able to track from the primary market.
  • Capex Plan: 50- 100 Crore in the next couple of years.
  • Capacity Utilization: Cooker (80-85%), Cookware (70%).
  • Market Share: Mixer grinder (6-7%), leader has (13-14%) in the mixer grinder category. It is very competitive space. In cooker and cookware they have been able to maintain the market share.
  • Company was able to pass the raw material cost increases and hence were able to maintain the margins.
  • Company operates in a seasonal business. Hence, Quarter 3 is the best for them. Demand was stable but it was not buoyant. Q4 will not be as good as Q3.
  • Guidance: Bottom line to grow at 20%+ in FY22.
  • The demand for premium and innovative products is more and always there and hence company is actively increasing the SKU’s.
  • Over the years GST, demonetisation, disruptions in supply-chain during the covid disproportionately affected the unorganised sector due to which the market share of the organised players has been growing.  
  • Exports continued to be robust though impact of logistics issues continued during this quarter as well.
  • During Nov 2021 Company entered into an agreement for making strategic investment in Ultrafresh Modular Solutions Ltd engaged in the business of Modular Kitchens and kitchen appliances having many franchisee outlets across India. The investment will be to the tune of around Rs 30 Crores towards primary as well as secondary acquisition.

 
Disclaimer: The information here is provided for reference purposes only and should not be misconstrued as investment advice. Under no circumstances does this information represent a recommendation to buy or sell stocks or MF.

Originally Published On: https://blog.investyadnya.in/the-company-continued-to-maintain-healthy-margins-through-improved-efficiencies-as-well-as-calibrated-price-increases-without-any-adverse-effect-on-volumes-and-market-share-ttk-prestige-q3-fy22-conf/

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