TTK Prestige (517506) Q1 24/25 earnings summary

Executive summary

• Management transition completed, with Venkatesh Vijayaraghavan set to become Managing Director from October 1st, 2024.

• Unaudited financial results for the quarter ended June 30, 2024, were approved by the Board and reviewed by statutory auditors without material misstatement.

• Q1 FY25 saw flat top-line growth, impacted by a slow April and May due to severe summer and elections, but June showed strong recovery with double-digit growth.

• Domestic sales grew 0.7% year-over-year to Rs 533.9 Crores, while export sales declined to Rs 17.4 Crores.

• Profitability remains robust despite subdued demand in some channels.

Financial highlights

• Standalone revenue from operations was ₹551.25 crore, nearly flat year-over-year (₹550.03 crore), and consolidated turnover was ₹587.93 crore.

• EBITDA margin for Q1 FY25 was 10.8%, lower than historical range of 12%-14%, attributed to ongoing investments and commodity cost pressures.

• Standalone EBITDA stood at Rs 81.0 Crores with a margin of 14.7%, slightly down from 15.1% last year.

• Gross margin improved over both last year and the previous quarter.

• Substantial free cash of over Rs 1,078 Crores at quarter end after investments and capex.

Outlook and guidance

• Management aims for top-line growth ahead of industry, focusing on premiumization, innovation, and quality.

• Anticipates improved customer demand in Q2, supported by festive season and plans to launch around 83 new SKUs.

• No specific revenue or margin guidance provided, but confidence expressed in growth initiatives and market recovery.

• Engaged a global consultant for a 5-year strategic plan.

• Focus remains on cost management and margin improvement.