ICICI Direct: TTK Prestige Posts Steady Q1; Gradual Recovery On The Cards  

ICICI Direct Report

Given the fact that approximately 45 days of the quarter was severely disrupted due to lockdown restrictions, TTK Prestige Ltd. reported steady Q1 FY21 results.

Post lockdown relaxations, green shoots were visible with pent up demand towards the kitchen appliances and cookware segment. However, due to various restrictions, less than 60% of TTK Prestige’s distribution channels were operational (large format stores channels were impacted most).

It reported revenue de-growth of 52% YoY to Rs 208.5 crore (versus estimated de-growth of 57% YoY). Among categories, cookers segment was impacted most with revenue de-growth of 59% YoY to Rs 58.0 crore.

Kitchen appliances, cookware categories de-grew 50%, 45% YoY to Rs 106.0 crore, Rs 35.0 crore, respectively. On the back of change in product mix, gross margins fell 200 basis points YoY to 40.5%.

However, cost optimisation measures (other expenses fell 54% YoY to Rs 41.0 crore) led to Ebitda profit of Rs 7.9 crore (our estimate loss of Rs 20.2 crore), with margins at 3.8%.

Demand in July has been encouraging with the company reaching approximately 90% plus pre-Covid-19 sales level.

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