TTK Prestige (517506) Q4 98/99 earnings summary

Executive summary

• FY1998-99 turnover reached ₹144.60 crore, up ~30% YoY; PBT rose 93% to ₹11.43 crore and PAT to ₹9.33 crore, with record production and sales.

• Growth was achieved without increasing investment in net working capital; new Prestige Supreme and Prestige Armour cookers received positive market response.

Financial highlights

• Revenue ₹144.60 crore vs ₹111.43 crore YoY; PBT ₹11.43 crore vs ₹5.93 crore, and net profit ₹9.33 crore vs ₹5.08 crore.

• Total income was ₹147.15 crore vs ₹116.35 crore; other income declined to ₹2.56 crore from ₹4.92 crore.

• Proposed dividend ₹3.00/share vs ₹2.50; proposed dividend totaled ₹3.40 crore, with ₹37.45 lakh dividend tax provision.

• Actual turnover, PBT and PAT were ₹145 crore, ₹11.43 crore and ₹9.33 crore, below projections of ₹225 crore, ₹30 crore and ₹21 crore, respectively.

Outlook and guidance

• Plans for the current year included new pressure cooker and non-stick cookware ranges; U.S. retail-chain customer base targeted to grow 40%.

• Export expansion included entering Eastern Europe; management expected to consolidate its position there over coming years.

• Higher aluminium prices were expected to be offset by manufacturing and other cost economies plus exchange gains; product/price-mix changes aimed to protect long-term operating margins.

• Y2K readiness was expected by September 1999, with estimated costs of ₹25 lakh.