TTK Prestige (517506) Q4 02/03 earnings summary

Executive summary

• FY 2002-03 marked the first annual loss in four decades: net loss Rs 1,147.24 lakh versus net profit Rs 70.10 lakh in FY 2001-02; total income was Rs 11,330.62 lakh.

• Domestic sales fell amid weak demand, excise costs, a missing premium cooker range and manufacturing reorganisation; exports more than doubled, but did not offset the domestic shortfall.

• Restructuring, excise relief, new products and cost reductions were expected to support improved FY 2003-04 performance, with operational profits anticipated barring unforeseen circumstances.

Financial highlights

• Total income was Rs 11,330.62 lakh versus Rs 14,124.15 lakh; sales were Rs 11,351.62 lakh versus Rs 14,007.39 lakh in FY 2001-02.

• PBT was a loss of Rs 1,742.24 lakh versus profit of Rs 101.37 lakh; net loss was Rs 1,147.24 lakh versus net profit of Rs 70.10 lakh.

• The P&L included Rs 818.95 lakh for the voluntary separation scheme and a Rs 236.54 lakh provision for investment diminution; net tax provision was a credit of Rs 595 lakh.

• Pressure cooker and pan sales were Rs 7,316 lakh, non-stick cookware Rs 1,394 lakh, kitchen electrical appliances Rs 893 lakh and gas stoves Rs 507 lakh.

• No dividend was recommended due to the year’s loss; the accumulated deficit was adjusted against general reserve.

Outlook and guidance

• FY 2003-04 plans included six new product ranges, lower fixed overheads, reduced excise duty, capacity reorganisation and cost-management initiatives; improved performance was expected.

• Operational profits were expected in FY 2003-04, barring unforeseen circumstances; productivity and profitability remained exposed to external conditions such as monsoon performance and global recession.

• Planned initiatives included rural-market expansion, greater retail penetration through Prestige Galleries, export-market consolidation and new product launches across pressure cookers, cookware, gaskets and appliances.