- 04 Nov 2022
- ICICIdirect Research
TTK Prestige’s revenue and earnings for Q2FY23 were belowTTKPRESTIG - 693 Change: -4.70 (-0.67 %)
Revenue remained flattish YoY at Rs 808 crore (I-direct estimate: Rs 847 crore). On a three year CAGR basis, revenue growth stood at steady 12%. Amongst categories, on a three year CAGR basis cooker grew at the fastest rate by 13% (5% YoY), followed by cookware which grew at 12% (-6% YoY) and appliances segment by 11% (-1% YoY). During the quarter all distribution channels were active and their contribution to total sales remained stable compared to previous quarters with the exclusive retail channel registering a better growth. Value added and new products helped the company to maintain the overall revenues. The company Introduced 16 new SKUs during Q2FY23 across all categories
The flattish revenue growth is on the back of a high base which had witnessed huge pent up demand post opening up of covid related restrictions. The company expects revenue growth to pick up from Q4FY23 onwards. The Company continues its focus on improvement in efficiencies and management of critical costs to maintain EBITDA margins at a healthy level. On the liquidity front, the company is well placed and carries substantial free cash of more than Rs 640 crores even after deploying significant amount in working capital for a cost effective supply chain as well ongoing capex. We believe that owing to its pan India presence and vast product portfolio, the company would benefit from the normalisation of the business scenario and able to register sustainable growth in revenues and profits.