Icon times
Subdued demand for Domestic kitchen and home appliances due to inflationary concerns especially in the entry-level segment. | TTK Prestige Q4FY22 Conference Call Highlights

Subdued demand for Domestic kitchen and home appliances due to inflationary concerns especially in the entry-level segment | TTK Prestige Q4FY22 Conference Call Highlights

Published on 01 June 2022 .Views 3 .Comments 0
  • Q4FY22: Domestic Sales grew by 16.0% from Rs.532.92 Crores to Rs.618.32 Crores.
  • Export Sales for the quarter grew by 33.2% from Rs 21.95 Crores to Rs.29.23 Crores.
  • Total Sales grew by 16.7% from Rs.554.87 Crores to Rs.647.55 Crores.
  • EBITDA was at Rs.119.12 Crores as compared to PY Rs.107.85 Crores; a growth of 10.5%
  • EBITDA margin was around 18.4% (PY 19.4%)
  • Profit after tax excluding exceptional income Rs.79.15 crores (PY Rs.70.45 crores)
  • FY22: Export Sales for the year grew by 37.5% from Rs.71.35 Crores to Rs.98.09 Crores.
  • Total Sales grew by 24.5% from Rs.2033.05 Crores to Rs.2532.15 Crores.
  • EBITDA was at Rs.441.21 Crores (PY Rs.342.17 Crores) a growth of 28.9%. EBITDA margin was around 17.42% (PY 16.83%)
  • Profit after Tax: Rs.293.65 Crores (PY: Rs.235.14 Crores) a growth of 24.9%
  • All channel and all geographies contributed with double digit growth during this year.
  • All major product categories except Cleaning Solutions grew in double digit both in value and volume. Cleaning Solutions had a larger base effect due to high pent-up demand seen in the PY.
  • There was pressure on consumer spending due to inflation as well as availability of alternate avenues for spending like travel & tourism, etc. This led to subdued demand for Domestic kitchen and home appliance.
  • All Channels were active throughout the quarter, though Omicron was a dampener.
  • Price increases had been taken in the previous quarters as well towards the end of Q4. By and large the COGS (cost of goods sold) for the year remained stable in spite of all the cost increases. The company continues to maintain healthy margins through improvement in efficiencies.
  • Exports continued to be robust though the impact of logistics issues including freight cost continued during this quarter as well.
  • Introduced 28 new SKUs during this quarter across all categories. Pressure cookers and Gas Stoves on Svachh platform continue to gain momentum.
  • Prestige Xclusive chain strength stood at 665 in 374 towns contributing significantly to total sales.
  • Trade collections improved meeting the trade norms of the company.
  • The Company had to carry raw material inventory higher than norms during this quarter to hedge against the continuing commodity price increase.
  • During Q4 the Company made a strategic investment in Ultrafresh Modular Solutions Ltd engaged in the business of Modular Kitchens and kitchen appliances having many franchisee outlets across India. The overall investment size is of the order Rs 30 Crores towards primary as well as secondary acquisition. During this quarter, the Company invested Rs 20 Crores and acquired 40.81% voting rights through allotment of fully paid-up as well as partly paid-up shares. Ultrafresh became an Associate of the Company from 16th February 2022.
  • UK SUBSIDIARY – HORWOOD HOMEWARES LTD: Horwood achieved a sale of £4.9 million (PY £4.8 million) in Q4. Full year sales was £18.8 million (PY £16.2 million) a growth of 16% against the backdrop of Brexit, COVID-19 pandemic, and geo-political tensions. Operating EBITDA for the year was £2.0 million (PY £1.6 million) a creditable increase of 25% in spite of global supply chain issues and steep increase in key commodity prices.
  • The company has slated for launch around 33 new SKUs during Q1 of FY 23.
  • Going forward coming wants to have 8-12% of revenue contribution from exports.
  • Total market size of the kitchen appliances industry is Rs 16-18 thousand crores. Penetration of cookers and cookware is nearly 90% in urban areas. Market size of pressure cookers is Rs 2500-3000 Cr and cookware is around 3000-3500 Cr.
  • 85% of the cookers are part of Svatch platform.
  • Growth has been good both in rural and urban areas in the middle to upper middle category. But the entry level demand is suffering.
  • Capex 50-55 Cr in FY22. 50-75 Cr of capex going forward.
  • Price hikes taken during FY22: Pressure cookers (6-7%), appliances (8-10%).
  • Company is targeting Rs 5000 Cr sales by FY25. Inorganic will constitute Rs 1000 Cr while rest will be by organic means.


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.


Use of this information is at the users own risk. The Company and its directors, associates and employees will not be liable for any loss or liability incurred to the user due to investments made or decisions taken based on the information provided herein. The investment discussed or views expressed herein may not be suitable for all investors. The users should rely on their own research and analysis and should consult their investment advisors to determine the merit, risks and suitability of recommendation. Past performance is not a guarantee for future performance or future results. Information herein is believed to be reliable, although its accuracy and completeness cannot be guaranteed. The images used may be copyright of the company or third party. As a condition to using the services, the user agrees to the terms of use of the website and the services.


Yadnya Academy Pvt. Ltd. (InvestYadnya) is registered with SEBI under SEBI (Research Analyst) Regulations, 2014 with registration no. INH000008349. Disclosure with regard to ownership and material conflicts of interest
1. Neither Research Analyst nor the entity nor his associates or relatives have any financial interest in the subject Company;
2. Neither Research Analyst nor the entity nor its associates or relatives have actual / beneficial ownership of one per cent or more securities of the subject Company, at the end of the month immediately preceding the date of publication of the research report or date of public appearance;
3. Neither Research Analyst nor the entity nor its associates or his relatives have any other material conflict of interest at the time of publication of the research report or at the time of public appearance.
Disclosure with regard to receipt of Compensation
1. The Research Entity and its associates have not received compensation from the subject company in the past twelve months.
2. The subject company is not or was not a client during the twelve months preceding the date of recommendation.
private article suscription area icon

You like to know more. We like that!

Please subscribe Model Portfolio Plan to get access of all premium model portfolio articles Only at Rs. 11,999.00/Year.

Please login to view this free article.

This blog is available only for logged in users, please register and get access to view this article.

Recently Uploaded

premium Premium
free Free
Chat on WhatsApp
Caret UP Arrow
InvestYadnya Support
Typically replies in minutes
InvestYadnya Support
Hi there
Welcome to InvestYadnya.
We are available to assist you on WhatsApp.
Please click on the button below to chat with us.
(10 AM to 7 PM IST)
Chat with InvestYadnya