TTK Prestige Q3 concall highlights –
Sales – 695 vs 765 cr
EBITDA – 80 vs 129 cr, Margins down at 12 pc vs 17 pc
PAT – 58 vs 91 cr
Travel and hospitality grabbed greater share of wallet post covid ( in Q2,Q3 FY 23 ) vs FY 22 when the situation was almost opposite
Good growth in RE industry should have a positive rub off on TTK prestige. However, the positive rub off should come with a lag as small appliances are the last thing that are bought in a new house
Gross margins likely to improve going fwd as RM prices moderate
Aim to keep hitting 8-10 pc volume and 4-5 pc price growth over long term
Volume growth in last 9 months has been robust in appliances. Cookware and gas stoves have shown de-growth
High cost RM inventory has hit Gross Margins in Q3
Prestige is a marginal player in chimneys at present. See this as a very promising and high growth category going fwd. Have lined up a lot of exciting products
Aim to tgt 14-16 pc EBITDA range over long term
Hope to end FY 23 at 42 pc GM which was the same as FY 22
Had acquired majority stake Ultrafresh Modular Kitchen stores chain LY.Have added 35 stores this year over a base of 88 stores. Likely to turn out to be a high growth category
Management likely to focus a little more on the lower priced Judge brand as demand is good at lower end
Management on the prowl for inorganic acquisitions. Have a cash on books of aprox 800 cr. Hope to close a deal by Q2 FY 24
Disc : holding. Planning to add more on dips.
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