Q1FY22 Result Update - TTK Prestige - ICICI Direct

Key takeaway from the results were that despite increase in commodity prices, the company has maintained its gross margins.

- With most channels closed in Q1FY22 (except online channel), revenue for the quarter de-grew 36% QoQ (up 71% YoY) to Rs. 356.9 crore

- Gross margin contraction was restricted to ~100 bps QoQ to 44.6% on account of price hikes and better product mix

- On account of negative operating leverage, EBITDA margins contracted by 750 bps QoQ (up 720 bps YoY) to 10.9%

- It continues to carry substantial free cash worth Rs. 490 crore

Key triggers for future price performance

- The company has nearly doubled the capacity for the cookware division while the new plant is expected to be commissioned in Q2FY22

- TTK is further looking to enhance its distribution reach in tier-II/III cites to capture long term growth opportunities

- The company has a healthy pipeline of ~80 SKUs to be launched in Q2FY22, which would propel growth, going forward

- Expect revenue recovery to pick up pace from Q2FY22 onwards and model revenue and earnings CAGR of 16%, 17%, respectively, in FY21-23E

For details, click on the link below: Link to the Report

Shares of TTK PRESTIGE LTD. was last trading in BSE at Rs. 8782.5 as compared to the previous close of Rs. 9186.15. The total number of shares traded during the day was 998 in over 583 trades.

The stock hit an intraday high of Rs. 9252.85 and intraday low of 8658.05. The net turnover during the day was Rs. 8962196.

Source : Equity Bulls

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