- 02 Feb 2022
- ICICIdirect Research
TTK maintains healthy margins despite moderation in revenue growth
TTKHLTCARE - 1733 Change: 0.10 (0.01 %)News: Revenue trajectory for TTK slowed down during the quarter as it registered revenue growth of 5.9% YoY to Rs.719.2 crore. Gross margins improved 90 bps YoY (up 250 bps QoQ) to 42.4%. However, increased employee and other expenses led to EBITDA margins remaining flattish at 17.5%. Absolute EBITDA grew by 6% YoY to Rs.126 crore. Consequently, PAT grew 3% YoY to Rs.89 crore.
Views: Revenue growth for the quarter moderated in Q3FY22 owing higher base of previous year and certain festive primary sales shifting in Q2FY22. The Company is focussing to maintain healthy margins through improved efficiencies as well as calibrated price increases without any adverse effect on volumes and market share. TTK continues to innovate and added 46 new SKUs during Q3FY22 across all product categories. In spite of expected demand disruptions due to Omicron, the company continues to maintain a positive demand outlook and plans to launch 63 new SKUs in Q4FY22. The company is comfortably placed on the liquidity front and carries free cash of ~ Rs.530 crore which would enable it to tide over the current volatile demand scenario.
Impact: Neutral