Key highlights

• The net sales for Q1 FY14 grew by just 1% to Rs 306.33 crore due to high base effect and as well as continuing slowdown in key southern markets. Also Q2 FY13 includes World Kitchen Products which is discontinued now. Q1 FY13 was also not affected by power shortage in key Southern markets. Operating profit margin declined by 210 bps to 13.5% due to rise in raw material cost. The net profit has decreased by 16% to Rs 25.79 crore.

• The mgmt said that the south economy is facing lots of trouble compared to non-south market. Apart from power cuts, agri outputs have suffered in Tamil Nadu which is one of the main market for company. Also south is first to adopt induction products compared to non-south market. As a result, the induction products have suffered. The mgmt future added that some revival is seen in Tamil Nadu market as compared to Q4 FY13. The growth in non-south market continues to be promising.

• For Q1, the cooker segment sales de-grew by 2% to Rs 119 crore, the cookware segment sales were down by 11% to Rs 48 crore and others de-grew by 33% to Rs 8 crore while appliances segment sales grew by 13% to Rs 138 crore.

• Cooker segment has de-grown because of fall in exports of microwave pressure cooker.

• Export was down from Rs 17.26 crore to Rs 11.46 crore. Major orders are slated from Q2.

• The mgmt said that its induction products has suffered in Q1, which has impacted the overall performance, whereas its gas stove has grown by 48% and mixer grinder by 47% in volume.

• Induction cooktop down by 10% in Q1.

• Out of total sales, around Rs 170 crore sales came from south market, which de-grew by 13% and Rs 130 crore from non-south market, which grew by 40% in Q1.

• In July, the company has taken around 6% price hike in manufactured cooker & cookware and around 8%-10% on imported appliances. There was no price hike on induction cooktop due to oversupply of it in market.

• The company's 25% revenue comes from imported goods.

• Prestige Smart Kitchen network at the end of the Q1 FY14 was 463, with net addition of 30 in Q1. The mgmt expects to add 100 stores in FY14. For Q1, around 17%-18% revenue comes from Prestige Smart Kitchen.

• Leaving World Kitchen Products numbers, the top-line has grown by 5.5%. The mgmt expects 15% growth for FY14 on like to like basis. The margin is expected to be around 14% for FY14.