Result Update: Q3 FY13 BUYBUYBUY CMP (Rs) 3531breport.myiris.com/firstcall/TTKPREST_20130117.pdf ·...
Transcript of Result Update: Q3 FY13 BUYBUYBUY CMP (Rs) 3531breport.myiris.com/firstcall/TTKPREST_20130117.pdf ·...
CMP (Rs) 3531.00
Target Price (Rs) 3955.00
ISIN: INE690A01010
Jan 17th
, 2013
TTK PRESTIGE LIMITED
Result Update: Q3 FY13
BUYBUYBUYBUY
Stock Data
Sector Home Appliances
BSE Code 517506
Face Value 10.00
52wk. High / Low (Rs.) 3996.00/2285.00
Volume (2wk. Avg ) 17000.00
Market Cap ( Rs in mn ) 39970.92
Annual Estimated Results (A*: Actual / E*: Estimated)
Years FY12A FY13E FY14E
Net Sales 11034.30 14565.28 17478.33
EBITDA 1751.20 2204.72 2659.70
Net Profit 1133.60 1427.74 1707.82
EPS 100.14 126.13 150.87
P/E 35.26 28.00 23.40
Shareholding Pattern (%)
1 Year Comparative Graph
BSE SENSEX TTK PRESTIGE LTD
SYNOPSIS
TTK Prestige Limited, has emerged as
India’s largest kitchen appliances company
catering to the needs of home makers in the
country.
During the quarter ended, the robust
growth of Net Profit of the company is
increased by 27.57% to Rs. 441.00 million.
Net addition to PSK (Prestige Smart
Kitchen) Net work during the quarter was
38, taking the total to 428 across 209
Towns in 21 states.
TTK Prestige Ltd has informed that the
Madras High Court have sanctioned the
Scheme of Amalgamation amalgamating
Prestige Housewares India Ltd, a TTK
Group Company with TTK Prestige Ltd.
The establishment of new facility in Gujarat
is in progress and the initial phase is
expected to be commissioned during the
last quarter of the current financial year.
TTK Prestige Ltd has received US Patent for
its Microwave Pressure Cooker under
Patent No.8247751.
Net Sales and PAT of the company are
expected to grow at a CAGR of 32% and
27% over 2011 to 2014E respectively.
Peer Groups CMP Market Cap EPS P/E (x) P/BV(x) Dividend
Company Name (Rs.) Rs. in mn. (Rs.) Ratio Ratio (%)
TTK Prestige Ltd 3531.00 39970.92 100.14 35.26 14.02 150.00
Hawkins Cookers Ltd 2395.00 12659.00 57.87 41.37 24.54 400.00
Bajaj Electricals Ltd 205.00 20441.80 12.11 16.93 2.96 140.00
La Opala RG Ltd 266.55 2834.80 13.34 20.05 5.09 20.00
Investment Highlights
Results updates- Q3 FY13,
TTK Prestige Limited, has emerged as India’s largest
kitchen appliances company catering to the needs of
home makers in the country, reported its financial
results for the quarter ended 31st Dec, 2012. The
third quarter witnesses a healthy increase in overall
sales as well as profitability enhanced, festive sales
took place in October & November of the current
financial year.
Months Dec-12 Dec-11 % Change
Net Sales 4371.30 3343.30 30.75
PAT 441.00 345.70 27.57
EPS 38.96 30.54 27.57
EBITDA 630.60 540.70 16.63
The company’s net profit jumps to Rs.441.00 millions against Rs.345.70 million in the corresponding quarter
ending of previous year, an increase of 27.57%. Revenue for the quarter rose 30.75% to Rs.4371.30 million from
Rs.3343.30 million, when compared with the prior year period. Reported earnings per share of the company
stood at Rs.38.96 a share during the quarter, registering 27.57% increase over previous year period. Profit
before interest, depreciation and tax is Rs.630.60 millions as against Rs.540.70 millions in the corresponding
period of the previous year.
Expenditure :
During the quarter total expenditure rose by 33 per
cent due to Other Expenditure indicates 44%
increase over the corresponding period of the last
year. Total expenditure in Q3 FY13 was at Rs.
3772.40 millions as against Rs. 2831.20 millions in
Q3 FY12. Cost of material consumed was stood at
Rs.952.70 millions against Rs.741.70 millions in the
corresponding period of the previous year. Other
Expenditure was at Rs. 1023.50 million and
Purchase of stock in trade was at Rs. 1192.90 million
in Q3 FY13 are the primarily attributable to growth
of expenditure.
Segment Revenue
Latest Updates
• A Scheme of Arrangement between TTK Prestige Limited and Triveni Bialetti Industries Private Ltd (TBI) has
been approved by the Sub-committee and confirmation by the High Courts of Chennai and Mumbai. The
Scheme of Arrangement if approved and confirmed by the Courts shall demerge the Kitchen Appliances
Division of TBI and vest the same with TTK Prestige Ltd.
• TTK Prestige Ltd has informed that the Madras High Court have sanctioned the Scheme of Amalgamation
amalgamating Prestige Housewares India Limited (PHIL), a TTK Group Company with TTK Prestige Ltd. TTK
Prestige Ltd has allotted 20,106 equity shares to the shareholders of Prestige Housewares India Ltd.
• Net addition to PSK (Prestige Smart Kitchen) Net work during the quarter was 38, taking the total to 428
across 209 Towns in 21 states.
Expansion Programme
• The Company has completed the expansion/addition of facilities for manufacture of Pressure Cookers in
Roorki, Coimbatore and Hosur. With this the overall capacity for pressure cookers is in excess of 8 million
pieces. The establishment of new facility in Gujarat is in progress and the initial phase is expected to be
commissioned during the last quarter of the financial year 2012-13. With this the Company will have in its
command around 12 million capacity for coated and impact bonded cookware.
• The overall capital expenditure including modernization/automation of certain processes in the existing
facilities is pegged at Rs.300 Crores out of which Rs.215 Crores has been spent and the balance will be spent
by the end of the current financial year.
Company Profile
TTK Prestige Limited is part of TTK Group. Over the past five decades TTK Prestige Limited, has emerged as
India’s largest kitchen appliances company catering to the needs of home makers in the country. Every Prestige
brand product is built on the pillars of safety, innovation, durability and trust, making the brand the first choice
in millions of homes.
They always begin by understanding the needs and requirements of customer and then they design and deliver
innovative products. TTK Prestige Limited is one of the world’s largest manufacturers of Pressure Cookers and it
has been forefront in introducing several innovations like Gasket Release System (GRS), Gasket Offset Device
(GOD) and Double Locking System, all firsts in India.
TTK Prestige Limited is also the first Kitchenware Company in India to receive the ISO 9001 Certification and the
PED/CE Certification by TUV, Germany. Prestige has been awarded with Selected “Super Brand” validated by
Consumers and also it is the most preferred brand in Kitchenware segment.
TTK Prestige Limited exports its products to USA, Europe, South Africa, Kenya, Australia, Singapore, Middle East,
Sri Lanka and many other countries. Products manufactured by TTK Prestige Limited meets every relevant global
standard such as CE, GS, UL etc. Today, Prestige has matured from a traditional pressure cooker brand to
complete kitchen solution provider.
Products
Today, TTK Prestige Limited has the widest product portfolio covering all aspects of the Kitchen making it the
only brand to offer TOTAL KITCHEN SOLUTIONS to the customer. The product range includes:
• Pressure Cooker: Deluxe, Popular, Money Saver, Nakshatra
• Pressure Handi: Deluxe, Nakshatra,
• Baby Handi
• Pressure kadai: Non-Stick Cookware, Omega select, Omega Die-Cast, Omega Deluxe
• Elec. Appliances: Mixer Grinders, Juicer Mixer Grinder, Rice Cookers, Champion Food Processors(M),
Oven Toaster Griller, Irons, DryIrons, Steam Irons, Kettles, Sandwich Toaster, Pop-up Toaster, Hand
Blender, Wet Grinder
• 6 Gas & Glass Tops: Conventional, Royale, Glass Tops
• Microwaves, Hoods & Hobs Kitchen Accessories, Knife Sets, Kitchen Tools, Barbeque
Plants Locations
The company presently has manufacturing facilities in Hosur, Coimbatore and Roorkee and distributes from
sales branches located across the country to cater to the needs of specific markets.
Financial Highlight
Balance sheet as at March31st, 2012
(A*- Actual, E* -Estimations & Rs. In Millions)
Particulars March (Rs.in.mn) FY12A FY13E FY14E
1.Shareholder’s Funds
a) Capital 113.35 113.35 113.35
b) Reserves & Surplus 2737.70 4165.44 5873.26
Total Net worth 2851.05 4278.79 5986.61
2.Loan Fund
a) Secured loans 151.10 157.14 161.86
b) Unsecured loans 21.70 21.92 22.36
c) Differed Tax liability 68.09 78.30 86.13
Total Liabilities (1+2 ) 3091.94 4536.15 6256.96
1.Fixed Assets
a) Gross block 2001.28 2421.55 2784.78
b) Depreciation 494.70 514.49 529.92
c) Net Block 1506.58 1907.06 2254.86
d) Capital Work in Progress 793.66 1047.63 1320.02
Total Fixed Assets 2300.24 2954.69 3574.87
2. Investments 3.90 4.49 5.02
Current Assets, Loans & Advances (A)
a) Inventories 1748.95 2413.55 3041.07
b) Sundry Debtor 1060.37 1336.07 1589.92
c) Cash & Bank Balance 223.37 256.25 287.01
d) Other Current Assets 4.53 5.66 6.80
e) Loans & Advances 1494.50 2421.09 3536.97
Total Current Assets 4531.72 6432.62 8461.76
Less: Current Liabilities & Provisions (B)
a) Liabilities 2305.18 3042.84 3681.83
b) Provisions 1438.74 1812.81 2102.86
3. Net Current Assets (A-B) 787.80 1576.97 2677.06
Total Assets( 1+2+3 ) 3091.94 4536.15 6256.96
Annual Profit & Loss Statement for the period of 2011 to 2014E
Value(Rs.in.mn) FY11 FY12 FY13E FY14E
Description 12m 12m 12m 12m
Net Sales 7635.70 11034.30 14565.28 17478.33
Other Income 43.00 30.80 34.50 37.95
Total Income 7678.70 11065.10 14599.77 17516.28
Expenditure -6425.00 -9313.90 -12395.05 -14856.58
Operating Profit 1253.70 1751.20 2204.72 2659.70
Interest -7.60 -56.40 -84.60 -120.13
Gross profit 1246.10 1694.80 2120.12 2539.56
Depreciation -42.60 -62.40 -80.50 -99.82
Profit Before Tax 1203.50 1632.40 2039.63 2439.75
Tax -366.00 -498.80 -611.89 -731.92
Net Profit 837.50 1133.60 1427.74 1707.82
Equity capital 113.20 113.20 113.20 113.20
Reserves 1801.48 2737.70 4165.44 5873.26
Face value 10.00 10.00 10.00 10.00
EPS 73.98 100.14 126.13 150.87
Quarterly Profit & Loss Statement for the period of 30th June, 2012 to 31st March, 2013E
Value(Rs.in.mn) 30-Jun-12 30-Sep-12 31-Dec-12 31-Mar-13E
Description 3m 3m 3m 3m
Net sales 3025.30 3355.50 4371.30 3322.19
Other income 6.90 10.00 9.40 7.71
Total Income 3032.20 3365.50 4380.70 3329.90
Expenditure -2547.10 -2858.80 -3750.10 -2867.05
Operating profit 485.10 506.70 630.60 462.85
Interest -26.10 -35.90 -31.10 -21.15
Gross profit 459.00 470.80 599.50 441.70
Depreciation -20.40 -21.50 -22.30 -22.75
Profit Before Tax 438.60 449.30 577.20 418.95
Tax -131.80 -146.50 -136.20 -121.50
Net Profit 306.80 302.80 441.00 297.46
Equity capital 113.20 113.20 113.20 113.20
Face value 10.00 10.00 10.00 10.00
EPS 27.10 26.75 38.96 26.28
Ratio Analysis
Particulars FY11 FY12 FY13E FY14E
EPS (Rs.) 73.98 100.14 126.13 150.87
EBITDA Margin (%) 16.42% 15.87% 15.14% 15.22%
PBT Margin (%) 15.76% 14.79% 14.00% 13.96%
PAT Margin (%) 10.97% 10.27% 9.80% 9.77%
P/E Ratio (x) 47.73 35.26 28.00 23.40
ROE (%) 43.74% 39.76% 33.37% 28.53%
ROCE (%) 66.92% 59.98% 51.24% 44.67%
Debt Equity Ratio 0.01 0.06 0.04 0.03
EV/EBITDA (x) 31.47 22.80 18.10 14.99
Book Value (Rs.) 169.14 251.85 377.97 528.84
P/BV 20.88 14.02 9.34 6.68
Charts
Outlook and Conclusion
� At the current market price of Rs.3531.00, the stock P/E ratio is at 28.00 x FY13E and 23.40 x FY14E
respectively.
� Earning per share (EPS) of the company for the earnings for FY13E and FY14E is seen at Rs.126.13 and
Rs.150.87 respectively.
� Net Sales and PAT of the company are expected to grow at a CAGR of 32% and 27% over 2011 to 2014E
respectively.
� On the basis of EV/EBITDA, the stock trades at 18.10 x for FY13E and 14.99 x for FY14E.
� Price to Book Value of the stock is expected to be at 9.34 x and 6.68 x respectively for FY13E and FY14E.
� We recommend ‘BUY’ in this particular scrip with a target price of Rs.3955.00 for Medium to Long term
investment.
Industry Overview
The term “appliances” can imply many different pieces of equipment. The most recognizable are items like
refrigerators, freezers, cooking ranges, and clothes washers and dryers. Other items like coffee makers,
microwaves, and air purifiers are also home appliances.
Kitchen appliances are the most commonly recognized appliances. Food processors, bread makers, juicers, and
other such items are also considered appliances for the kitchen. All of these items are designed to make
daily kitchen duties much easier and convenient.
Many home appliances are found outside of the kitchen. The washer and dryer are probably the two most
common non-kitchen oriented appliances. Other items include air purifiers, dehumidifiers, air conditioners, and
space heaters.
Small appliances are becoming increasingly popular in the modern home. Many of these items didn’t’ exist 20
years ago. Electric shavers and toothbrushes are among the most popular small home appliances.
Manufacturing home appliances has become a big industry over the past few decades. The variety of appliances,
and the multitude of designs for each item, has grown much more numerous. The technology that is used in the
operation of this equipment has dramatically advanced in recent years.
The General Electric (GE) appliance line covers nearly every home appliance need. This company has existed for
decades and is one of the industry leaders in appliance manufacturing. Many of their products are considered
some of the most advanced and efficient on the market.
In today’s world, energy efficient appliances are an important way to help conserve our natural resources. An
ecologically friendly appliance can have a significant impact on annual energy costs. These items sometimes cost
a little more at the point of purchase, but the long term energy savings easily makes up for the difference in price.
The refrigerator is often the centerpiece of a kitchen’s design. However, these items are usually the largest
consumer of electricity in the house. It is therefore recommended that one purchase the most energy efficient
model that one can afford.
Dishwashers are as common as refrigerators and cooking ranges in today’s kitchens. Modern versions are much
more efficient in their water usage and in their energy consumption than they have been in the past. They can
also be found in designs to match nearly any kitchen décor.
Appliances are omnipresent in the average American home. Many common appliances like refrigerators,
freezers, stoves, cooking ranges, and dishwashers have been seen in homes for decades. As technology has
advanced, so have the capabilities and efficiency of these appliances.
Most of today’s appliances are designed to be much more efficient and ecologically friendly. Modern washers use
much less water than those of the past. Today’s refrigerators also use much less electricity than earlier models.
Appliances like air conditioners and space heaters are becoming more common in today’s homes. These items
can help make a home much more comfortable during inclement weather. Small items like these are often the
least expensive appliances as well.
Kitchen appliances make up the vast majority of household appliances. Refrigerators, cooking ranges, and
microwaves are found in nearly every home. Smaller items like coffee makers, food processors, and blenders are
also quite common.
The refrigerator is generally the most used kitchen appliance in the average home. Energy efficiency is an
important aspect of a refrigerator, as they are always running and are therefore responsible for the bulk of a
kitchen’s energy consumption. Modern refrigerators use considerably less energy than those of just a decade ago.
Cooking ranges and microwave ovens are also common kitchen appliances. Cooking ranges come in both electric
and natural gas varieties. Electric ranges today use much less electricity than those of the past.
CRISIL Research expects household appliance industry to register a growth of 17 per cent CAGR to reach Rs.736
billion in 2015-16.Rising household incomes and low penetration levels will drive the industry volume growth.
Disclaimer:
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from publicly available data or other sources believed to be reliable but do not represent that it is accurate or
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not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the
information contained in this report. This document is provide for assistance only and is not intended to be and must
not alone be taken as the basis for an investment decision.
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