TTK Prestige (517506) Q4 04/05 earnings summary

Executive summary

• FY05 sales incl. excise duty rose 30% YoY to Rs.189.37 crore; reported PBT was Rs.3.85 crore and PAT Rs.3.81 crore, versus Rs.0.55 crore and Rs.0.21 crore in FY04.

• Growth reflected new and value-added products, broader domestic reach and export gains; operating performance improved despite one-time costs of Rs.5.76 crore and a Rs.2.42 crore property/investment transfer credit.

• Free cash generation improved, borrowings fell, and a Rs.2/share dividend was recommended after a three-year gap.

Financial highlights

• Sales incl. excise duty were Rs.189.37 crore, up from Rs.146.11 crore; other income fell to Rs.2.45 crore from Rs.6.35 crore.

• PBT rose to Rs.3.85 crore from Rs.0.55 crore; PAT was Rs.3.81 crore versus Rs.0.21 crore, after tax provision/credit of Rs.0.04 crore versus Rs.0.34 crore.

• Net sales after excise duty were Rs.181.05 crore; material consumption was Rs.100.68 crore and expenses Rs.76.99 crore.

• Reported results included Rs.5.76 crore of one-time non-recurring expenses and Rs.2.42 crore credit on property/investment transfers.

Outlook and guidance

• Management expected annual growth of 15%–20% and sought to improve on FY05 performance through product and market initiatives.

• Modular kitchens were planned for launch in FY06, with expectations of adding to turnover; export efforts aimed to maintain performance amid competition and retailer reorganization.

• Prestige-branded products received a US-market license for the ethnic Indian segment in FY06; rural expansion remained at pilot stage.