TTK Prestige (517506) Q1 24/25 earnings summary

Executive summary

• Management transition completed, with Venkatesh Vijayaraghavan set to become Managing Director from October 1st, ensuring continuity.

• Unaudited financial results for the quarter ended June 30, 2024, were approved by the Board and reviewed by statutory auditors without material misstatement.

• Domestic sales grew 0.7% year-over-year to Rs 533.9 Crores, while export sales declined to Rs 17.4 Crores.

• Total standalone sales were Rs 551.3 Crores, up marginally from Rs 550.0 Crores last year.

• Profit after tax was Rs 46.9 Crores, compared to Rs 50.5 Crores in the previous year.

Financial highlights

• Standalone revenue from operations was ₹551.25 crore, nearly flat year-over-year and down from the previous quarter.

• EBITDA margin for the quarter was 10.8%, lower than the historical 12%-14% range, impacted by investments and commodity cost pressures.

• Gross margin improved over both last year and the previous quarter.

• Substantial free cash of over Rs 1,078 Crores at quarter end after investments and capex.

• June saw double-digit growth, led by cookware, followed by cookers and appliances, with the Judge brand contributing 2-3% of revenue.

Outlook and guidance

• Management aims to outpace market growth through premiumization, new product launches, and expanding market share in core and underpenetrated categories.

• Plans to launch around 83 new SKUs in Q2 FY25, after 39 SKUs in Q1.

• Festive season and new launches expected to drive momentum.

• Positive outlook for exports with ongoing discussions with global brands.

• Engaged a global consultant for a 5-year strategic plan.