TTK Prestige posts 33 per cent growth in Q3 profit owing to new product launches

TTK Prestige, the market leader in kitchenware, reported a 32.6 per cent growth in bottomline, led by a successful rollout of new product launches in the last nine months.

The company has reported a 32.6 per cent increase in standalone net profit at Rs 37.2 crore for the third quarter ended December 31, 2015, as against net profit of Rs 28.06 crore in the corresponding quarter of the previous year.

Total income of the company increased by 16.7 per cent quoting Rs 447.83 crore for Q3FY16, as compared to Rs 383.74 crore for the corresponding quarter of previous year.

The company’s EBITDA jumped by 27.66 per cent to Rs 58.1 crore in Q3FY16; along with EBITDA margin, which jumped by 109 bps to 12.97 per cent. Operating margin mainly improved due to healthy revenue growth, with a change in product mix and better utilisation in the Vadodara plant, which would reduce its dependence on traded products.

As per a BSE press release, domestic sales grew by 17.6 per cent from Rs 379.33 crore to 446.2 crore, which is highest ever sales in the third quarter in any financial year; whereas export sales dropped by 16.6 per cent to Rs 13.5 crore.

Non-south market registered an impressive growth, however south market continued to be sluggish due to floods in Tamil Nadu.

In the last nine months alone, the company has launched about around 80 new SKUs (new variants of existing products or new products), including a new model of pressure cooker in North India and new models of cookware in the South.

For, nine-month period ended December 31, 2015, the company’s net profit reported at Rs 12.89 crore as against Rs 82.56 crore and topline grew by 10.46 per cent to Rs 1,217.4 crore, as against Rs 1,102.08 crore in the same period of the previous year.

During the quarter, cooker segment grew 13 per cent Y-o-Y to Rs 153 crore; while cookware and appliance segment increased 9 per cent and 27 per cent to Rs 85 crore and Rs 202 crore, respectively. These three segments together comprised 96 per cent of total operating revenue of the company.

Appliances segment was the fastest growing segment, which grew 27 per cent Y-o-Y, mainly driven by new product launches.

The company continues to remain focused on geographical diversification in non-south markets, a factor which helped reduce their dependence on southern markets.

Currently the stock price has recovered from an intra-day low; however is still trading at 3 per cent lower quoting Rs 4,200.