TTK Prestige (517506) Q4 05/06 earnings summary

Executive summary

• FY 2005-06 sales including excise duty rose 22.4% to ₹23,183 lakh; net profit increased 87% to ₹711 lakh, with higher domestic sales and improved margins.

• Growth followed two successive years of 30% YoY growth; all product categories expanded, while export business declined.

Financial highlights

• Sales including excise duty were ₹23,183 lakh versus ₹18,937 lakh; profit before tax was ₹1,200 lakh versus ₹385 lakh.

• Net profit rose to ₹711 lakh from ₹381 lakh; net tax provision increased to ₹489 lakh from ₹4 lakh.

• Proposed dividend was ₹2.50 per share, equivalent to a 25% dividend rate; dividend including tax totaled ₹323 lakh.

Outlook and guidance

• Directors expected overall growth of 20%, subject to unforeseen circumstances and the indirect tax regime remaining unchanged.

• The stated growth ambition was 15%-20% annually, with expectations of improving on FY 2005-06 performance.

• Planned expansion included further Prestige Smart Kitchen outlets, a few Kitchen Boutiques, and new high-end appliances including chimneys, hobs, microwave ovens and kettles.