TTK Prestige Limited Q4FY21 Result Analysis | Yadnya Investment Academy

TTK Prestige Limited recently published its Q4FY21 Results, the company posted a net profit of Rs. 86 Cr. this quarter. Let’s find out its other parameters through our analysis:

Introduction

TTK Prestige Limited is an Indian company that manufactures kitchen appliances and cookware, under the brand name Prestige. The company is best known for its pressure cooker range. The company posted a net profit of Rs. 86 Cr. this quarter which is 883% higher than the previous year in the corresponding quarter. The reason for the steep rise can be the lower base in the previous year as well as ease in the lockdown situations of the country and re-opening of the worldwide market.

We have done a 6 point analysis on the Q4FY21 Results of TTK Prestige Limited, namely:

TTK Prestige Result- 6 point analysis

1. TTK Prestige Q4FY21 Results:

• The Revenue from Operations has shown significant growth of 43% (YoY) to Rs. 598 Cr. in the Q4 of FY21 as compared to Q4 of the previous year. Whereas, the revenues have fallen by (17.6%) QoQ from Rs. 726 Cr.
• The Operating Profit of TTK Prestige has delivered a steep growth of 191.9% (YoY) from Rs. 37 Cr. In Q4 FY20 to Rs. 108 Cr. in the Q4 of FY21. The profits have shown a fall in QoQ with a negative 12.2 % from Q3 FY21.
• The Operating Profit Margins (OPM) % has also increased due to better-operating profit by 920 basis points (bps) YoY from 8.8% in Q4 FY20 to 18% in Q4 of FY21. And on a QoQ basis, the OPM % has shown growth by 110 basis points (bps) from 16.9% in Q3 FY21.
• TTK Prestige has delivered over 6 times rise in Profit before Tax (PBT) of 528% YoY, from Rs. 18 Cr. in the Q4 of FY20 to Rs. 113 Cr. in the Q4 of FY21. Whereas, the QoQ has shown a fall in profits by 5.8% from Rs. 120 Cr. in Q3 FY21.
• The profit after tax (PAT) has shown a massive growth of 888.3% (YoY) from Rs. 8.6 Cr. in the Q4 of FY20 to Rs. 85 Cr. in the Q4 of FY21. Net Profit on QoQ basis has also given the steady growth of 1.2% from Rs. 84 Cr. in Q3 FY21.
• The Net Profit Margins (%) has also gone up by 1220 bps (YoY) from 2% in Q4 FY20 to 14.2% in Q4 of FY21. And on a QoQ basis, the OPM % has gone up by 260 basis points (bps) from 11.6% Q3 FY21.

TTK Prestige- Q4FY21 Results

2. TTK Prestige - FY21 Performance:

• The Revenue from Operations has shown a steady growth of 5.5% (YoY) from Rs. 2,073 Cr. in FY 20 to Rs. 2,187 Cr. in FY21.
• The Operating Profit of TTK Prestige has delivered a decent growth of 24.3% (YoY) from Rs. 263 Cr. in FY20 to Rs. 327 Cr. in the FY21.
• The Operating Profit Margins (OPM) % has also shown a rising trend by 220 basis points (bps) YoY from 12.7% in FY20 to 14.9% in FY21.
• TTK Prestige delivered a strong rise in Profit before Tax (PBT) of 38% YoY, from Rs. 234 Cr. in the FY20 to Rs. 323 Cr. in the Financial Year 2021.
• The profit after tax (PAT) of TTK Prestige has shown a steep growth of 27.4% (YoY) from Rs. 186 Cr. in FY20 to Rs. 237 Cr. in FY21.
• The Net Profit Margins (%) of the company has also gone up due to better Net Profit by 180 bps (YoY) from 9% in FY20 to 10.8% in FY21.

TTK Prestige- FY21 Performance

3.TTK Prestige- Revenue Mix:

i) Cookers:

• The revenue from Cookers has increased by 49.1% (YoY) quarterly from 116 Cr. in the Q4 of FY20 to Rs. 173 Cr. in the Q4 of FY21.
• On yearly basis, the revenue from Cookers has slightly increased by 0.8% (YoY) from 596 Cr. in the Q4 of FY20 to Rs. 601 Cr. in the Q4 of FY21.
• The overall share has grown from 30% in the Q4 of FY20 to 31% in Q4 of FY21.

ii) Cookware:

• The revenue from Cookware has marginally increased by 66.7% (YoY) quarterly from 54 Cr. in the Q4 of FY20 to Rs. 90 Cr. in the Q4 of FY21.
• On yearly basis, the revenue from Cookers has increased by 13.7% (YoY) from 292 Cr. in the Q4 of FY20 to Rs. 332 Cr. in the Q4 of FY21.
• The overall share has grown from 14% in the Q4 of FY20 to 16% in Q4 of FY21.

iii) Appliances:

• The revenue from Appliances has increased by 33.7% (YoY) quarterly from 199 Cr. in the Q4 of FY20 to Rs. 266 Cr. in the Q4 of FY21.
• On yearly basis, the revenue from Appliances has increased by 3.7% (YoY) from 975 Cr. in the Q4 of FY20 to Rs. 1011 Cr. in the Q4 of FY21.
• The overall share has fallen from 52% in the Q4 of FY20 to 48% in Q4 of FY21.

iv) Others:

• The revenue from Others has increased by 66.7% (YoY) quarterly from 15 Cr. in the Q4 of FY20 to Rs. 25 Cr. in the Q4 of FY21.
• On yearly basis, the revenue from Others has increased by 20.3% (YoY) from 74 Cr. in the Q4 of FY20 to Rs. 89 Cr. in the Q4 of FY21.
• The overall share has grown from 4% in the Q4 of FY20 to 5% in Q4 of FY21.

TTK Prestige- Revenue Mix

4. TTK Prestige- General Backdrop & FY22 Outlook:

1. General Backdrop:

• Market demand continued to be robust with the new normal of working from home continuing to augur well for kitchen and home appliances.
• Most of the Supply Chain issues got stabilized which faced issues in Q2 & Q3 of FY21.
• Inflation in the prices of commodities has affected the cost structure of the company.
• Export continued to be robust despite logistics being affected in several quarters.

2. FY22 Outlook:

• TTK Prestige has a Positive Outlook for the Exports in the upcoming FY22.
• The Company has slated launch for launch around 120 new SKUs in FY22.
• The Company is now focusing on increasing the supply chain.

5. TTK Prestige- Key Highlights- Q4FY21

• The company has reported the Highest Ever Sales for Q4 of a Financial Year.
• TTK Prestige also reported all-time high exports during the quarter The Export Sales grew by 70.3% from Rs 41.89 Crores to Rs.71.35 Crores.
• Direct Rural Channel reported a significant growth in the quarter.
• TTK Prestige introduced 15 new SKUs during the quarter.
• The Company carries substantial free cash over Rs. 535 Cr. post-CAPEX and investments in UK Subsidiary.
• Significant Margin Expansion due to Operation Leverage.
• A final dividend of Rs. 30 per share is recommended by the Board.

6. Valuations:

• The stock P/E as of 31 May 2021 stands at 50.94 which is lower than 1 Year Median P/E and is near around 3 Year and 5 Year Median P/E.
• The P/E of TTK Prestige is lower than both its peers except Hawkins Cookers as well as P/E of the industry, which shows that the company is slightly undervalued when compared to its other peers in the market.

TTK Prestige- Valuations