TTK PRESTIGE LTD - 2ND QUARTER RESULTS (SEP,2014) - Sales up 11% - NPT Down slightly

TTK PRESTIGE LTD

2^ND QUARTER RESULTS

(SEP,2014)

TTK PRESTIGE has released its 2^nd quarter results ending September 2014.

GENERAL ECONOMY :

Ø The consumer sentiment though positive is not resulting in greater demand

Ø In spite of catching up in August and September, the deficit in monsoon has been the highest in the past five years and parts of central India are witnessing near drought conditions

Ø Sudden burst in ' e tailing' is creating channel conflicts resulting in lower stocking up by traditional trade channels

Ø While the demand for premium products is comparatively sluggish, demand for  non-premium products is encouraging.

B. SPECIFIC TO COMPANY

Ø  Key south markets are improving

Ø  Power situation in Tamil Nadu is comparatively better

Ø  Other than monsoon deficit regions, non-south markets are growing

KEY PERFORMANCE HIGH LIGHTS

OF 2ND QUARTER ENDED 30th SEPTEMBER 2014

( AS COMPARED TO Q2 OF PREVIOUS YEAR)

Ø  TOTAL SALES GREW BY ABOUT 11% from Rs. 353 Cr to Rs. 391 Cr

Ø  DOMESTIC SALES GREW BY ABOUT 14% FROM Rs. 335 Cr to Rs. 382 Cr(AS AGAINST 8.28% GROWTH OF Q1 FY 14-15 OVER Q1 13-14)

Ø  EXPORT SALES DROPPED FROM Rs. 18.26 Cr TO Rs. 9.16 Cr

GROWTH RATE FOR Q2 OVER PREVIOUS YEAR FY 14-15

Ø  Q2 EBIDTA was Rs.47.29 cr ( P.Y Q2 : rs.47.02cr)

Ø  Net profit after tax was Rs. 27.98 cr. ( PY Q2 Rs.30.30cr.)

Ø  EPS was Rs. 24.04 (PY Q2 Rs.26.03)

Ø  EBIDTA margin stood at 12.08% as compared to pre. annual average of 12.7%

KEY PERFORMANCE HIGH LIGHTS OF I HALF YEAR

( AS COMPARED TO I HALF OF PREVIOUS YEAR)

Ø  Sales for the I half year grew by 10.4% from rs.666 cr to 735 cr

Ø  Domestic sales grew by 11.5% from rs.637 cr to rs.710 cr.

Ø  Exports dropped from rs.29.73 cr to rs.25.52 cr

Ø  EBIDTA margin stood at 12.17% as compared to previous year annual average of 12.7%

Ø  Net profit after tax for the I half year was Rs.54.5 cr as compared to Rs.56.09 cr of previous year I half

Ø  EPS for the 1st half was Rs.46.82 ( py rs.48.18 ) on FV of Rs.10.

KEY BUSINESS FACTS FOR Q2 OF 2014-15

·       Traditional products like pressure cookers & cookware have registered good growth

·       Aided by offering of new and improved range. Growth in appliance category appears low due to the base effect of induction cook-tops and also due to the preference of Consumers for lower priced ranges over high-end ranges. The realisation mix has therefore impacted the top line.

·       Price increase took effect from September 2014 and hence increased raw material Costs had to be absorbed in old prices during the previous months. This had an impact on the margin for q2.

·       While the new facilities are put to greater use, it will take a while to completely stabilise and absorb the additional overhead and in the transition stage this impacts the margin to an extent.

·       Delay in launch of new products has impacted export sales

·       The new category 'water filters' is in initial launch phase in select markets

·       Net addition to prestige smart kitchen network was 12 taking the total to 558

·       Inventory levels as on 30th September was higher due to build up for Q3 festive season, resulting in transitionary borrowings of Rs.55 crores

GOING FORWARD :-

·       Q3 festive season is likely to be more buoyant than the previous year

·       General economic recovery is still at a fluid stage and hence it is difficult to provide any concrete guidance at this stage. However, Growth in the second half is likely to be better than the 1st half

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