28-05-2025
TTK Prestige Ltd (BOM:517506) Q4 2025 Earnings Call Highlights: Navigating Growth Amidst Margin ...
Total Sales Growth: 4% including exports.
Domestic Sales Growth: 3%.
EBITDA: INR 72.5 crores for the quarter, down from INR 100 crores in the previous year.
Annual Revenue Growth: 1.2% with INR 2,400 crores in domestic sales.
Annual EBITDA: INR 339 crores, down from INR 386 crores last year.
Annual Margins: 13.4% overall margin, 10.7% operating margin.
Number of Stores: 667 stores.
New SKUs Introduced: 44 in the quarter, 191 during the year.
Cash Position: Comfortable, despite CapEx, dividends, and buyback expenses.
Warning! GuruFocus has detected 4 Warning Signs with BOM:517506.
Release Date: May 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
TTK Prestige Ltd (BOM:517506) reported a positive growth trajectory, with domestic sales growing by 3% and total sales, including exports, increasing by 4%.
The company has introduced 191 new SKUs during the year, which has helped gain significant counter presence and growth in various channels.
TTK Prestige Ltd (BOM:517506) is focusing on premiumization in urban markets and expanding into Tier 2 and Tier 3 towns, leveraging e-commerce channels for aggressive demand generation.
The Judge brand has been repositioned and is growing well, contributing to the company's growth strategy, particularly in Tier 2 and Tier 3 towns.
The company is investing in capacity and capability building, including renewable energy and automation, to strengthen its manufacturing capabilities and leverage future demand.
TTK Prestige Ltd (BOM:517506) faced pressures on raw material pricing, which affected margins, with EBITDA declining to INR72.5 crores from INR100 crores in the previous year.
The company is incurring significant soft operational expenses, which are expected to continue for the next 8 to 10 quarters, potentially diluting EBITDA margins.
The MFI channel has been subdued due to structural and policy changes, impacting sales in this segment.
CSD channel sales have also been subdued due to internal operational rationalizations, affecting overall growth.
The company anticipates a period of diluted margins due to ongoing investments, with a focus on long-term growth rather than immediate profitability improvements.
Q: With the growth in traditional channels and the impact on MFI channels, can we expect TTK Prestige's growth to move towards double digits in the next quarter? A: Venkatesh Vijayaraghavan, CEO, stated that while they don't provide specific guidance, the growth is expected to be positive as they are seeing positive trends quarter-on-quarter.
Q: Can you explain the consultancy expenses and their impact on EBITDA? A: Saranyan R, CFO, explained that the one-off expenses for long-term growth impacted EBITDA by about 2% during the quarter. These expenses are expected to continue for the next 8 to 10 quarters as part of a planned INR 200 crore investment over three years.
Q: What is driving the positive growth in the industry and for TTK Prestige? A: Venkatesh Vijayaraghavan, CEO, noted that all categories are seeing a revival, with appliances growing faster than kitchenware. Growth is driven by premiumization, especially in southern markets, and channels like quick commerce and e-commerce.
Q: What is the strategy for the Judge brand, and how is it being repositioned? A: Venkatesh Vijayaraghavan, CEO, explained that the Judge brand targets a different audience than Prestige, focusing on Tier 2 and Tier 3 towns. The brand has been repositioned with a clear product portfolio and distribution strategy, showing good growth in cookware and cookers.
Q: Can you provide details on the planned INR 300 crore CapEx over the next two years? A: Venkatesh Vijayaraghavan, CEO, stated that the CapEx will focus on core categories, including expanding capacities in aluminum and stainless steel tri-ply, as well as appliances. Investments will also be made in automation and renewable energy.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
