TTK Prestige (517506) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 was a muted quarter with a 2.9%–3% year-over-year revenue decline, mainly due to post-festive demand slowdown, persistent MFI channel weakness, and muted growth in general trade and modern formats, while e-commerce and exclusive stores performed well.

• Urban demand remained stable but pressured by inflation and stagnant discretionary spending, while rural demand was subdued overall but showed some recovery from good monsoons and government spending.

• Export orders were robust but some shipments were deferred to Q4 due to container shortages and supply chain issues.

• Management remains confident about internal metrics, market share gains in core categories, and robust growth in e-commerce, large-format, and own retail stores.

• Unaudited financial results for Q3 and nine months ended December 31, 2024, were reviewed and approved by the Board.

Financial highlights

• Q3 standalone sales were Rs. 666.7 Cr, down 2.9% year-over-year; consolidated turnover was Rs. 727.2 Cr.

• Q3 EBITDA was Rs. 90.1 Cr (13.5% margin), down from Rs. 103.0 Cr (15.0%) last year; Q3 PAT was Rs. 54.3 Cr, down from Rs. 63.0 Cr.

• Gross margin expanded by 150 basis points year-over-year, attributed to cost management and delayed price impacts.

• Marginal price increases were implemented due to commodity inflation, with further price hikes not anticipated in the near term.

• INR 13.5 crore in consultancy expenses were recognized as a one-time item over six months.

Outlook and guidance

• Management expects consumption to pick up in coming quarters, with growth driven by urban markets, new product launches, and digital initiatives.

• India projected to grow 6.7% in the next two years, with rural demand expected to pick up.

• Company plans to launch 69 new SKUs in Q4 FY25, focusing on innovation.

• Export demand expected to improve despite ongoing geopolitical and supply chain challenges.

• MFI channel weakness is considered a structural issue and may not recover soon; future growth will be tracked excluding this channel.