Analyst Meet Presentation for the quarter ended June 30, 2022
TTK PRESTIGE LIMITED Gist of Information to be shared with Analysts Quarter Ended 30th June 2022
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Financial Results for Quarter ended 30th June 2022
GENERAL BACKDROP FOR Q1 OF FY 2022-23 A. GENERAL ECONOMY
• The economy continued to be under stress during the quarter with the extended
geo-political crisis.
• The inflation has been on rise across the global with unprecedented increase in fuel
and other key commodity costs across the world.
• The inflation in India is controlled much better than some of the developed countries. • The pressure on consumer spending due to inflation as well as availability of
alternate avenues for spending like travel and tourism
• The recovery in contact-intensive sectors such as travel, entertainment and dining among others as the pandemic abated, supported the economy even as high inflation took a toll on some consumer sectors like Domestic kitchen and home appliances.
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Financial Results for Quarter ended 30th June 2022
GENERAL BACKDROP FOR Q1 OF FY 2022-23 A. GENERAL ECONOMY (Continued …)
• Though the inflation pressure was felt more at the low-income households, the
impact was minimum at the mid and high-income group.
• All Channels were active throughout the quarter though the e-commerce was going through a churn with various regulatory requirements as well as re-emergence of offline channels and inventory build-up at the channel level.
• The commodity price increase that continued during the first half of the quarter,
started softening during the latter part of the quarter.
• Automobile sector had shown sign of revival in Q1 FY23 with the government taking significant measures to ease the inflationary pressure by reducing the duties on petrol and diesel.
• Export remained robust though the impact of the global recession is having an
impact on its expected growth. Logistics costs continue to be high as well.
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Financial Results for Quarter ended 30th June 2022
GENERAL BACKDROP FOR Q1 OF FY 2022-23
B. SPECIFIC TO COMPANY
• During the quarter all the channels were active and contribution to the total sales of the Company by and large remained similar to contribution seen in the previous quarter i.e. Q4 of FY22.
• The increase in commodity prices softened to some extent by end of the quarter
though inflation on other items is a cause for concern.
• The impact of the softened commodity prices will only be felt by end of Q3 due to
inventory on hand at higher prices.
• The company continues to maintain healthy margins through improvement
in
efficiencies.
• Exports are a bit stressed because of recessionary trends in the developed markets
and the geo-political situation.
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Financial Results for Quarter ended 30th June 2022
KEY PERFORMANCE HIGHLIGHTS OF 1ST QUARTER ENDED 30TH JUNE 2022 (AS COMPARED TO Q1 OF PREVIOUS YEAR)
• Domestic Sales grew by 71.6% from Rs.336.50 Crores to Rs.577.47 Crores. • Export Sales for the quarter grew by 9.0% from Rs 20.42 Crores to Rs.22.26 Crores. • Total Sales grew by 68.0% from Rs.356.92 Crores to Rs.599.73 Crores. • EBITDA was at Rs.89.61 Crores as compared to PY Rs.47.36 Crores; a growth of
89.2%
• EBITDA margin was around 14.9% (PY 13.3%) • Profit before Tax is at Rs 77.67 Crores (PY Rs.36.62 Crores); a growth of 112.1% • Profit after Tax is at Rs.57.63 crores (PY Rs.27.21 crores). • EPS was at Rs.4.16 per equity share of face value Rs 1/- each (PY Rs.1.96)
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Financial Results for Quarter ended 30th June 2022
KEY PERFORMANCE HIGHLIGHTS OF 1ST QUARTER ENDED 30TH JUNE 2022 (Continued….) (AS COMPARED TO Q1 OF PREVIOUS YEAR)
• Consolidated turnover grew by 56.8% from Rs.401.07 Crores to Rs.629.05 Crores. • Consolidated Profit before Tax stood at Rs 73.11 Crores (PY Rs.40.74 Crores); a
growth of 79.5%
• Consolidated Profit after Tax is at Rs 54.06 Crores (PY Rs.30.59 Crores) • Consolidated EPS was at Rs.3.85 (PY Rs.2.21).
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Financial Results for Quarter ended 30th June 2022
KEY BUSINESS FACTS FOR Q1 OF FY 2022-23
• The Company did well compared to Q1 of
is not comparable as the previous year was impacted by the second wave of the Covid-19 pandemic. The normal comparable quarter is Q1 of FY 20. As compared to the normal Q1 of FY 20 the growth is in excess of 38% on sales and 43% on EBITDA which is reflective of the Company’s robust brand and channel salience.
the previous year though it
• Introduced 25 new SKUs during this quarter across all categories. • New products launched during the quarter have been received well especially in the
grinding appliances segment.
• Prestige Xclusive chain strength stood at 666 in 377 towns contributing significantly
to total sales.
• Trade collections are robust meeting the trade norms of the company.
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Financial Results for Quarter ended 30th June 2022
KEY BUSINESS FACTS FOR Q1 OF FY 2022-23 (Continued …)
• The Company had to carry raw material
inventory higher than norms during this quarter to hedge against the commodity price increase that was prevalent during the first half of this quarter.
• Long-term settlement was concluded at the Uttarakhand unit for a period of five
years
• The company carries substantial free cash more than Rs 595 crores as at the end of the quarter even after deploying sufficient amounts in working capital for a cost- effective supply chain.
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Financial Results for Quarter ended 30th June 2022
SALES BREAKUP – STANDALONE- FOR 1ST QUARTER FY 2022-23 (In Rs. Crores)
Q1 2022-23
Q1 2021-22
GROWTH
Q1 2020-21
Q1 2019-20
COOKERS COOKWARE APPLIANCES OTHERS
194.08 105.64 272.17 27.84
104.03 68.89 170.70 13.30
87% 53% 59% 109%
57.91 35.27 105.56 9.80
139.88 64.58 212.49 16.65
TOTAL
599.73
356.92
68%
208.54
433.60
PROPORTION TO SALES
Q1 2022-23
Q1 2021-22
Q1 2020-21
Q1 2019-20
COOKERS COOKWARE APPLIANCES OTHERS TOTAL
32.36% 29.15% 17.61% 19.30% 45.38% 47.83% 3.73% 4.64%
27.77% 32.26% 16.91% 14.89% 50.62% 49.01% 3.84% 4.70%
100.00% 100.00%
100.00% 100.00%
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Q1 Top line over 5 years (Standalone)
71.2%
68.0%
599.7
356.9
418.9
17.2%
433.6
3.5%
208.5
-51.9%
2018-19
2019-20
2020-21
2021-22
2022-23
Net Sales (Rs Crores)
Sales Growth %
10
Q1 EBITDA over 5 years (Standalone)
100
90
80
70
60
50
40
30
20
10
0
14.4%
14.4%
13.3%
14.9%
89.6
60.2
62.7
2018-19
2019-20
6.9%
14.5
2020-21
EBITDA (Rs Crores)
EBITDA %
47.4
2021-22
2022-23
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Financial Results for Quarter ended 30th June 2022
UK SUBSIDIARY – HORWOOD HOMEWARES LTD
• Horwood achieved a sale of £3.1 million during Q1 FY 23 (PY £4.3 million). • Currently UK & Europe is going through a recession and steep inflation due to the ongoing
geo-political crisis coupled with UK’s own political issues.
• This has adversely impacted the customer sentiments and thus impacted the sales of
Horwood during the Q1 of FY23.
• Operating EBITDA for Q1 is at £(0.33) million (PY £0.47 million) caused by economic recession, increase in key commodity price and global supply chain issues and reduced operating leverage due to lower sales
• The subsidiary is taking all necessary actions to sail through this tough period through
appropriate actions to optimize costs and through improved efficiencies in operations.
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Financial Results for Quarter ended 30th June 2022
UK SUBSIDIARY – HORWOOD HOMEWARES LTD (Continued…..)
• The implementation of the new ERP system to support the expansion of the business is stabilizing over period. Once stabilized this expected to further improve the operational efficiencies resulting in better customer experience in the coming years.
• The impact of the recession and inflation is expected to continue during Q2 FY23 as well
though all efforts are being made by Horwood to mitigate these impacts.
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Financial Results for Quarter ended 30th June 2022
GOING FORWARD
• The rate of growth in Q2 will be less given the high base of previous year. However this is
as planned and the growth rates are expected to improve in the second half.
• The continued hybrid mode of working in many of the service industries is expected to support the home and kitchen appliances domain. This coupled with the softening of the commodity prices from the end of Q1 FY23 is expected to have a positive impact on growth and maintaining decent margins.
• The Covid pandemic is also under reasonable control in India, and this will ensure that
the economy will revive faster than rest of the world.
• The improvement is some of the key sectors like real estate, automobile, entertainment, etc are expected to further support the demand by triggering employment opportunities yielding a larger customer base.
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Financial Results for Quarter ended 30th June 2022
GOING FORWARD (Continued…)
• The high inflation driven by the extended geo-political crisis is a major concern. However, the actions being taken by the Government by reduction of duties, export restrictions on key commodities, etc may ease the pressure on private consumption.
• The Company continues its focus on improvement in efficiencies and management of
critical costs to maintain EBITDA margins at a healthy level.
• The company has slated for launch around 40 new SKUs during Q2 of FY 23. • Exports outlook remains positive, but the growth is subject to improvement in the global
economic slowdown.
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Financial Results for Quarter ended 30th June 2022
SAFE HARBOUR THIS PRESENTATION MAY CONTAIN CERTAIN STATEMENTS WHICH ARE FUTURISTIC IN NATURE. SUCH STATEMENTS REPRESENT THE INTENTIONS OF THE MANAGEMENT AND THE EFFORTS BEING PUT IN BY THEM TO REALIZE CERTAIN GOALS. THE SUCCESS IN REALIZING THESE GOALS DEPENDS ON VARIOUS FACTORS BOTH INTERNAL AND EXTERNAL. THEREFORE, THE INVESTORS ARE REQUESTED TO MAKE THEIR OWN INDEPENDENT JUDGMENTS BY CONSIDERING ALL RELEVANT FACTORS BEFORE TAKING ANY INVESTMENT DECISION.
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New Launches – Q1 / FY 22-23
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Kitchenware – Q1 Launch
FLIP ON SVACHH (8 SKU’s)
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Appliances – Q1 Launch
NEW GRILLERS – DOMESTIC
PEG 1.0, 5.0 AND 6.0
NEW KETTLES – PKSS 0.5, PKLSS 1.7, PKPC 1.5, PKDSS 0.7
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Appliances – Q1 Launch
VERTICAL WET GRINDERS PVG 1.5 & 2.0
STACK O MIX – Mixer Grinder
PMC 3.0 +
PEC 4.0 ELECTRIC CHOPPER
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Cleanhome – Q1 Launch
TCB ALPHA 01,02,03,04 – 750 ML
SINGLE WALL BOTTLE – SS – PSWBC 17
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