Key takeaways of the call

Performance for Q2FY21 was negatively impacted by both lockdown in the initial part of the quarter in some geographies especially in the West as well as Stock availability (of some key SKUs) right through with constraint at supply chain. Manufacturing operations stabilised towards the end of the quarter and hence there was a large reduction in inventory before the festive season; component supplies were sluggish as vendors had lockdown/immigrant labour impact. Hit by supply constraint the company could not capitalize on the increased demand in Q2FY21.

Revenue in July was lower YoY owing to high base as the sales promotion activity for this fiscal has been delayed by two months. Usually the sales promotion activity will commence in April/May and the benefit will get reflected in July numbers. But that has been delayed this fiscal and July 2020 was bereft of that benefit and benefit started in Aug 2020 onwards only.

Direct Rural Channel yet to become active that affected growth in some categories. MFI not active for most of the last quarter. MFI channel is also looking good going into Q3 as it started picking up by end of sep 2020 onwards.

Since August the company has been on a strong growth path - August and September have grown over 20% over the previous year. The growth was similar in Oct 2020 as well. Demand is far higher than what the company anticipated in Aug-Oct 2020 period.

Announced price hike of 4.5% to 6% in home appliance category for mixer grinders and cook tops from Nov 2020.

Large format channels have taken more time to open up. However, by the end of the quarter, most of them have become active.

E-commerce, General Trade and Prestige Xclusive Channels continued to be more buoyant.

E-commerce share of revenues for TTK was at 25% and has been the fastest growing channel. Behaviour of consumers gravitated in favour of online buying. It expects the same trend to continue, going ahead

In terms of volume the company was able to maintain its market share of 30% in cooker and 35% in cookware.

On the regional revenue performance, non-south region grew faster than south region while Tier I locations grew faster than metro cities.

The company made significant additions to dealer points in major geographies towards the end of the quarter and introduced 62 new SKUs during the quarter including a new category of casseroles

Prestige Lifestyle Stores - a new retail format – currently has three stores contributing good branding and visibility to the company's high-end products

Expect the outlook for its cooker and cookware is positive and continued the trend of Aug-Oct period in Nov 2020 as well further boosted by festival demand.