Wednesday, July 14, 2010

TTK PRESTIGE = Q1 FY11 RESULT = COMPARED WITH EARLIER 4 QTRS = EXCELLENT IMPROVEMENT = A COMPANY ON THE MOVE



TTK PRESTIGE LIMITED
Q1 FY 11 RESULTS
COMPARISON

TTK PRESTIGE LIMITED has released its results for Q1 of FY11. These are compared with the earlier quarters below:


Net Sales       has increased by 17.7% in Q1 FY11 to Rs.145.35 Cr compared to Rs.123.51 Cr in Q4 FY10 – and by 47.8% compared to Rs.98.35 Cr in Q1 FY10.


Total Expenditure        has increased by 15.7% to Rs.123.43 Cr in Q1 FY11, compared to Rs.  106.64 Cr in Q4 FY10 – and by 42.7% compared to Rs.86.51 Cr in Q1 FY10.


Net Profit has increased by 25.3% QOQ to Rs.16.03 Cr in Q1 FY11, from Rs.12.79 Cr in Q4 FY10 – and by a whopping 116.9% compared to Rs.7.39Cr in Q1 FY10. This QOQ and YOY increase reflects FANTASTIC RATE of growth being achieved by the company.





In line with this, the Basic EPS has risen superbly to Rs.14.16 in Q1 FY11 from Q4 FY10’s EPS of Rs.11.3, and Q1 FY 09’s EPS of Rs.6.53 on a face value of Rs.10. If this rate of improvement is maintained, the annual EPS for FY11 must easily cross 56 and may be in the range of 60-65. The company is also expanding its production capacity and is introducing many innovative products – which are likely to catapult the revenues and profits to much higher levels. Its enhanced Vision namely ‘A Prestige in every Indian kitchen’ is quite catchy and is likely to push the company to achieve this objective. 


The share price is quoting at Rs.1012. At the forward earnings of FY11 of around Rs,60, the PE ratio works out to 16.87.


TTK Prestige is a company ‘on the move’.

Quarterly figures :

Jun-10
Mar-10
dif%1
Dec-09
Sep-09
Jun-09
dif%2
Net Sales
14535
12351
17.7
14673
13935
9835
47.8
SIT&WIP
-611
-184
232.1
-654
365
-15
3973.3
Raw Materials
4110
3370
22
3298
3243
2518
63.2
 Traded Goods
3905
3796
2.9
4776
3597
2353
66
Employees Cost
1167
951
22.7
1020
1033
930
25.5
Depreciation
98
104
-5.8
87
85
83
18.1
Other Expdr
3674
2627
39.9
3950
3536
2782
32.1
Total Expdr
12343
10664
15.7
12477
11859
8651
42.7
OPT.Profit
2192
1687
29.9
2196
2076
1184
85.1
Other Income
96
70
37.1
33
23
-12
-900
Interest6
17
28
-39.3
17
17
52
-67.3
P B T
2271
1729
31.3
2212
2082
1120
102.8
Tax expense
668
545
22.6
679
673
381
75.3
P A T
1603
1184
35.4
1533
1409
739
116.9
Extrao.Items
-
-95

-
-284
-
Net Profit
1603
1279
25.3
1533
1693
739
116.9
Dividend (%)
-
100

-
-
-
Face Value .Rs
10
10
0
10
10
10
0
Paid Up Equity
1132
1132
0
1132
1132
1132
0
Basic EPS
14.16
11.3
25.3
13.54
14.96
6.53
116.8
Public holding.%
25.08
25.08
0
25.08
25.08
25.08
0


IMPORTANT POINTS FROM
CHAIRMAN’S SPEECH

INNOVATION

One of the salient aspects of total transformation process was innovation and new product development. Your company focused on offering well differentiated products in every product category to stay above competition.  As mentioned in the Annual Report your company recently launched Apple shaped inner lid cookers, Microwave pressure cookers, an entirely new range of Induction cook tops and induction compatible pressure cookers and cookware.

FINANCIAL YEAR 2009-10

The Annual Report for the year has already been circulated. I will just touch upon the salient points of the Company’s performance in the financial year 2009-10.

a.  Sales grew by over 24% from Rs. 416 Crores to Rs.517 Crores
b.  All time high absolute value growth – Rs.100 Crores
c.   The growth was primarily driven by volumes.
d.  The operating profit before extra-ordinary item increased by 146% i.e. from Rs.29 Crores to Rs.71.43 Crores.
e.  Earnings per share rose by 117.4% i.e. from Rs.19.77 to Rs.42.98
f.    Prestige Smart Kitchen network was consolidated and improved as per plans. The number of outlets as on 31.3.2010 was 228 covering 19 States and 136 towns.
g.  Your company continued its policy of introducing new models and new products in all its product lines.
h.  Your company has set up a new unit II at Uttarakhand for manufacture of stoves and electrical appliances and commercial production commenced during March 2010.

BRAND SALIENCE

You Company continues to enjoy the recognition of “Super brand’ in the Kitchen Appliances segment. Your company received the ‘Retailer of the year’ award from Asia Retail Congress for the year in recognition of your Company’s successful establishment and operation of Prestige Smart Kitchen Retail Network across India. 

DIVIDEND

Taking into account the profits made and the capital outlays required for future expansion, your Board of Directors have recommended an increase in the dividend from Rs.5.00 per share to Rs.10.00 per share. This dividend will account for a cash outflow of Rs.11.32 Crores by way of dividend and Rs.1.88 Crores by way of dividend distribution tax thus aggregating to Rs.13.2 Crores.

FINANCIAL YEAR 2010-11 – Positive Beginning

Your company continues to pursue its strategies tailored to suit the changing economic and market conditions as well as consumer preferences.  This is being reflected in the improvements in top- line of the company witnessed during the first three months of the current financial year 2010-11. Turnover of the company for the first quarter of 2010-11 is expected to close at Rs.145 Crores registering a growth of 45% over the corresponding quarter of previous year.  

FUTURE VISION AND STRATEGY

… Following the footsteps of the founders, your Board now has decided to pursue an enhanced Vision namely ‘A Prestige in every Indian kitchen’.  
In realizing the above vision your company will continue to be guided by its Core Values 
       Quality products at affordable prices
       Trust, Transparency, Knowledge and “Prestige” in whatever we do
       Fairness in dealings with every stakeholder
       Respect for Environment
Your company now has the requisite platform of product categories to embark on the journey to the above vision. However this new vision calls for greater efforts, newer strategies and further transformation at all levels  besides striking trade and technical alliances and your Board is committed to take necessary steps in this regard.  
Your company will continue to tap global markets as a tactical strategy for specific products. 
EXPANSION PLANS:
The new Vision calls for establishing manufacturing and sourcing capacities of a different scale. To start with your company has initiated efforts to expand capacities at various locations starting with the facilities at Kinnathu Kidavu village, near Coimbatore. As mentioned in the Director’s Report the capital expenditure outlay for the year is estimated at Rs.50 Crores. 
FINANCIAL POSITION:
Your company is debt-free and has an opening free cash balance in excess of Rs.30 Crores. Your Board expects that your company will be cash positive at the end of the financial year 2010-11 even after incurring the above capital expenditure.



ANNOUNCEMENTS TO
THE EXCHANGE

29-06-2010        Ttk Prestige Limited has submitted to the Exchange a copy of the Chairman's speech delivered at the Annual General Meeting of the Company held on June 29, 2010.
05-05-2010        Ttk Prestige Limited has informed the Exchange vide its letter dated May 05, 2010 regarding a press release, titled "TTK Prestige's net increases by 134%".
04-05-2010        Ttk Prestige Limited has informed the Exchange that the Board of Directors of the Company at its meeting held on May 04, 2010 have recommended a dividend of Rs.10.00 per share.        -
06-04-2010        Ttk Prestige Ltd. has informed the Exchange regarding "Launch of New Range of Inner Lid Pressure Cookers - Prestige Apple". The details of the same shall be available on the NSE website (http://www.nseindia.com) under Corporates > Latest Announcements and on the Extranet Server (/Common/Corporate Announcements).
31-03-2010        Ttk Prestige Ltd. has informed the Exchange regarding "Launch of Microwave Pressure Cooker." The details of the same shall be available on the NSE website (http://www.nseindia.com) under Corporates > Latest Announcements and on the Extranet Server (/Common/Corporate Announcements).
29-03-2010        Ttk Prestige Ltd. has informed the Exchange that the Company has commenced commercial production at its new unit (Unit II) situated at Roorkee, Uttarakhand. This new unit is established to produce a wide range of Kitchen appliances including Gas stoves, Induction cook tops, Mixer grinders, Rice cookers and a wholly new range of pressure cookers/cookware.     -
19-03-2010        Ttk Prestige Ltd. has informed the Exchange that the Company is launching a whole new range of Induction Stoves. These stoves are very safe as there is no flame and are more energy efficient. The pressure cookers and cookware needed for these stoves require a special base which is induction compatible. The Company is launching a whole new range of pressure cookers and cookware with induction base using dedicated imported machinery. These products can also be used on conventional gas stoves and hobs.

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