TTK Prestige (517506) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 was muted, with lower-than-expected post-festive demand, especially in rural markets, while urban demand remained stable but pressured by inflation; e-commerce and exclusive stores performed well.

• Export orders were robust but some shipments were deferred to Q4 due to container shortages.

• Unaudited Q3 and nine-month results were reviewed and approved by the Board on January 28, 2025.

Financial highlights

• Q3 standalone sales were ₹666.75 crore, down 2.9% year-over-year; consolidated turnover was ₹727.23 crore.

• Q3 EBITDA was ₹90.1 crore (13.5% margin), down from ₹103.0 crore (15.0%) last year; Q3 PAT was ₹54.29 crore, down from ₹63.04 crore.

• Gross margin expanded by 150 basis points year-over-year, driven by cost management and delayed price impacts.

• One-time consultancy and operational expenses of ₹13.5 crore were booked over six months and are not expected to recur in Q4.

• Company held free cash of ₹810 crore at quarter end after capex, buyback, and working capital deployment.

Outlook and guidance

• Management expects consumption to pick up in coming quarters, with continued focus on urban markets and structural correction needed in rural channels.

• Company plans to launch 69 new SKUs in Q4 FY25, focusing on innovation.

• Export demand expected to improve despite ongoing geopolitical and supply chain challenges.

• No immediate further price hikes are planned, but future adjustments will depend on market conditions.