Key highlights

The mgmt said that consumer sentiment improved marginally. Later part of the quarter was better due to pre-festive order bookings. Demand for high-end products better than low-end products reflective of middle income group's reluctance to spend

The net sales for quarter grew by 13% to Rs 487.19 crore. The net profit has inclined by 4% to Rs 35.39 crore

Consolidated net sale grew 23% to Rs 527.65 crore

For Q2, the cooker segment sales grew by 7% to Rs 171.31 crore, microwave cookers sale grew by 126% to Rs 2.69 crore, the cookware segment sales grew by 6% to Rs 81.28 crore, appliances segment grew by 21% to Rs 217.47 crore and others grew by 9% to Rs 14.44 crore

Domestic Sales Grew by 12% to Rs 477.22 crore. Export grew from Rs 8.55 crore to Rs 12.97 crore.

High end products continue to yield better sales than mass low end products reflecting mass consumer apathy.

Exports witnessing a healthy growth.

Growth from e-commerce channel encouraging. All the Regions grew well during the quarter, signaling a favourable trend. Both south and north markets have grown at an equal pace.

The company faced high competition from low cost competitors mainly from North and East.

Appliances grew better than traditional products. Since there was no price increase in applainces, entire 21% growth was volume driven.

UK subsidiary is able to withstand brexit impact.

EBIDTA margin stable inspite of input material cost increase and composition of sales with higher appliance content. Also company has been making soft investments in new category and market expansion.

Notably, all new introductions saw good acceptance, contributing revenue of Rs 3 crore in the quarter.

New category "Cleaning Solutions" products placed in select markets and response has been encouraging

No of Prestige Smart Kitchen (PSK) at the end of September was 527. The company has added 9-10 stores and closed 15.

E-commerce contribution has increased by 1% from last year, but would continue to remain 4% of total sales including the company's website.

Water Purifiers will be launched in Q4 FY17 or Q1FY18 as currently it is under testing phase.

October 2016 witnessed significant growth propped up by festive demand. Retails sales improved in October, while corporate gifting was disappointing.

Horwood business contributed Rs 38 crore to sales with 14% EBITDA margin

Going forward, good South-West monsoon and infrastructure investment likely to improve consumer sentiment. New products expected to drive sales. Favourable commodity prices and internal efficiencies can yield better margin. Focus will be on growth and improving market share which can have some transient impact on margin% but will benefit the company in the long-run.

With regard to pound depreciation, mgmt highlighted that since most cookware products are imported in the UK, the impact will be similar for all companies. Margins are expected to remain stable in Horwood.

The mgmt retained its guidance of ~15% revenue growth in FY17, given improving domestic consumer sentiment.