TTK Prestige (517506) Q4 01/02 earnings summary

Executive summary

• FY 2001-02 net profit was ₹70.10 lakh, after deferring ₹883 lakh of product development, new product introduction and brand-promotion costs; no dividend was recommended.

• New launches included Smart pressure cookers, kitchen electrical appliances and gas stoves; turnaround efforts focused on cost control, working capital and product innovation.

Financial highlights

• Total income was ₹14,124.15 lakh vs ₹13,850.73 lakh; sales were ₹14,007.39 lakh vs ₹13,707.98 lakh in FY 2000-01.

• Profit before tax was ₹101.37 lakh vs ₹167.56 lakh; net profit was ₹70.10 lakh vs ₹155.12 lakh.

• Operating profit before interest, depreciation and exceptional items was ₹1,074.06 lakh vs ₹954.07 lakh; interest expense rose to ₹772.27 lakh from ₹578.04 lakh.

• Exports were ₹740.65 lakh vs ₹1,013.06 lakh; U.S. sales were affected by recession, retailer contraction and the aftermath of September 11.

Outlook and guidance

• FY 2002-03 sales expected to decline in H1 as inventory and working capital are corrected; turnaround expected from Q3.

• Planned launches included stainless-steel pressure cookers, upgraded Smart aluminium models and new export-market pressure cooker models.

• Cost and capacity restructuring, workforce right-sizing and distribution changes were planned; pilot efforts to reach rural markets were also intended.