TTK Prestige (517506) Q2 24/25 earnings summary

Executive summary

• Management remains confident in the Indian economy, expecting continued growth in core categories, especially retail, e-commerce, and modern trade channels.

• Achieved 3.6% year-over-year growth in standalone Q2 sales to Rs 708.5 Crores, with consolidated turnover up 2.8% to Rs 750.1 Crores.

• Store rationalization in the Prestige Xclusive format is complete, with future expansion planned in targeted geographies.

• Consultant engagement identified operational efficiencies and growth opportunities, incurring a one-time expense of Rs 7.94 Crores in Q2.

• Unaudited financial results for the quarter and half year ended September 30, 2024, were approved and published.

Financial highlights

• Standalone revenue from operations for Q2 FY25 was ₹708.52 crore, up from ₹683.67 crore in Q2 FY24; consolidated revenue was ₹750.06 crore, up from ₹729.47 crore year-over-year.

• Standalone net profit for Q2 FY25 was ₹57.59 crore, compared to ₹62.17 crore in Q2 FY24; consolidated net profit was ₹52.25 crore, down from ₹59.04 crore year-over-year.

• Standalone EBITDA margin for Q2 was 13.5% (PY 14.6%); H1 standalone EBITDA margin was 14.0% (PY 14.8%).

• EPS for Q2 was Rs 4.17 (PY Rs 4.49); consolidated EPS was Rs 3.82 (PY Rs 4.28).

• Free cash at quarter end exceeded Rs 850 Crores post capex and buyback.

Outlook and guidance

• Management maintains a positive outlook for H2 FY25, expecting robust growth, especially as deferred export orders are fulfilled.

• Festive season and improved rural sentiment expected to boost demand in Q3, with 96 new SKUs planned for launch.

• Commodity price increases are expected to persist, potentially impacting margins, but efficiency improvements are targeted.

• The company engaged a global consultant for a five-year strategic blueprint.