About the Company

For over six decades TTK Prestige has stood tall as the market leader in kitchen appliances. Their pioneering products make them the best companion for the Indian homemaker. They have evolved with the changing demands of the consumers in India and have added new products and categories to address the aspirations of the consumers. The TTK Group was founded in 1928 as an indenting agency by a visionary entrepreneur, Mr. T.T. Krishnamachari. Today it is a household brand.

Q3 2019 Updates

Financial Results & Highlights

Standalone Financials

Particulars (INR Cr) Q3FY19 Q3FY18 YoY Q2FY19 QoQ
Sales 552.03 457.97 20.54% 552.27 -0.04%
PBT 84.85 63.48 33.66% 80.25 5.73%
PAT 56.84 43.67 30.16% 53.77 5.71%

Consolidated Financials

  Q3FY19 Q3FY18 YoY Q2FY19 QoQ
Sales 558.63 461.62 21.02% 558.71 -0.01%
PBT 84.85 63.48 33.66% 80.26 5.72%
PAT 56.84 43.67 30.16% 53.77 5.71%


Detailed Results

  1. Revenues grew more than 20% YoY and both PAT and PBT grew more than 30% YoY.
  2. Exports grew by 14.4% from Rs 8.39 Cr to Rs 9.6 Cr.
  3. The company recorded highest ever Q3 sales highest ever EBITDA for any quarter.
  4. Most markets witnessed more than 10% growth.
  5. Tamil Nadu market was soft due to deficient monsoon and the Gaja cyclone.
  6. Introduced 29 new SKUs in the current quarter.
  7. Capacity expansion going on to keep up with increasing demand.
  8. Sales Breakup for this quarter according to categories:
    • Cookers: 189 Cr from 166 Cr with 14% growth YoY
    • Cookware: 94 Cr from 76 Cr with 24% growth YoY
    • Appliances: 297 Cr from 230 Cr with 29% growth YoY
    • Others: 18 Cr from 15 Cr with 20% Growth YoY

Investor Conference Call Highlights

  1. Management were very enthusiastic because of the best performing third quarter on date.
  2. The segment wise growth which was well distributed across all segments.
  3. They mentioned that the major pressure on them in the last quarter was due to rupee depreciation which increased their raw material costs. As most of the raw materials are imported, exchange rate plays an important role.
  4. They see this pressure easing as the costs are passed on to the consumer.
  5. Despite the higher selling prices, the consumer demand has stayed high which emphasized their brand durability and overall demand for their products.
  6. Focus on capacity expansion and push into rural areas which account for only 4%-5% of overall sales.
  7. Also looking forward to increasing online sales which right now constitute 7%-9% of sales.

Analyst’s View

TTK Prestige have delivered a good quarter as compared to last year. They are pushing to expand into rural areas while pushing for capacity expansion, thus highlighting their focus areas for sales in the near future. Hence, TTK Prestige stands out as a strong and dependable player in its segment and foresee growth continuing for years to come. However, we continue to believe that the valuation is still very high for our comfort. Hence, we would like to recommend a “Buy” only at reasonable valuation.

Disclaimer

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