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The company held conference call to discuss results for the quarter ended June 2016.
Key highlights
The net sales for quarter grew by 2% to Rs 346.1 crore. The net profit has inclined by 10% to Rs 24.2 crore
Consolidated net sale was Rs 398.41 crore
For Q1, the cooker segment sales de-grew by 2% to Rs 128 crore, the cookware segment sales de-grew by 9% to Rs 58 crore, appliances segment grew by 8% to Rs 161 crore while microwave cookers sale was nil. Others grew by 23% to Rs 16 crore
Domestic Sales Grew by 2% to Rs 356.26 crore. Export dropped from Rs 7.7 crore to Rs 6.55 crore.
Overall growth was more impressive in south.
Domestic growth was impacted by low consumer sentiment.
Higher end products yield better sales than mass low end products reflecting mass consumer apathy.
Cleaning solution, a new category was launched in Q1 in selected markets.
Expected export orders deferred to second half due to global economic issues.
No of PSK at end of June was 532.
Acquired Horwood business in UK in April 2016 and Rs 35 crore from Horwood added to consolidated sales.
South market saw growth while non south market was muted.
Growth in ecommerce was encouraging.
4-5% volume growth in Q1, but value growth was lower because no price hikes taken. And also low price model sales were more in induction cooktop and cooker.
South market contribution to sale was 55% and non-south was45%.
The mgmt is seeing recovery in non south market
The mgmt expects margin to improve for rest of year.
Good domestic growth in Q2 and Q3 expected. After July, the mgmt is seeing market improvement. Expects minimum 5% growth in domestic level and minimum 15% topline growth at consolidated level for FY17.
Pressure cooker has 5% excise duty and 6% VAT. Non stick cookware has 2% excise duty and 6% VAT.
Cookware – retail sale of cookware has actually grown.
E-comm – contribution is ~ 6% of total sale.
Synergy from Horwood business will kick in 1st April of next year.
Tax rate 31% for Indian business in FY17
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