Highlights of the call are:

• Despite challenging environment in the economy, TTK Prestige has reported healthy growth of 30% in the revenues at Rs 302.53 crore and 21% increase in the Net profit at Rs 30.68 crore for the quarter ended June 12. Operating margins remained at 15.8% in quarter under review against 15.9% in the corresponding previous quarter.
• The growth in topline was attributed to both volume and value growth. Revenues from Cookers grew 23% to Rs 121 crore, Cookware by 32% to Rs 54 crore, Appliances up 36% to Rs 122 crore and others grew 50% to Rs 12 crore.
• The Geographical break up of revenues continues to be same as 65% south and 35% Non south states.
• The company has taken 7-8% price hike on Aluminum pressure cookers and 3% on cook ware in April 12. On the Appliances front, after price revision in February, it has increased prices by 4-5% in June 12. Going further, the management expects no price hikes and waits for the demand uptick.
• Add spend during the quarter constituted 5.6% of the revenue. The management has noted that delayed monsoon and inflation is impacting the general business climate.
• Export revenues have more than doubled to Rs 17.26 crore against Rs 7.65 crore in the corresponding previous year. Company expects to sell significantly more microwave pressure cookers in export markets (especially Japan); sales of this product are expected to be 0.8-0.9 million units in FY13, compared to 0.17 million in FY12. All the company exports except that of Middle Eastern countries are marketed under overseas brands and not on company brand. The management is comfortable for outsourcing than having their own brand in the international markets.
• The company has launched Corelle range of table ware in May 2012. It is now filling up channel inventory for Corelle products and will start doing so for Meyer products from Aug 2012 in order to be ready for the upcoming festival season.
• The company plans to complete its ongoing capex programme by end-FY13 and reduce its reliance on imported products. Resultantly, imports of Cookers and cook tops will be reduced in FY14. However, the company still will rely on imports for appliances from Chinese market even after the above capex completion.
• The company has added 14 Prestige Smart Kitchens during the quarter taking the total count to 370 stores in 190 towns and 22 states. These stores will help the company to get through the consumer preferences on their new product offerings. TTK also plans to widen its traditional distribution network (mom and pop stores) 10% yearly.
• Debt on book stood at Rs 770 crore while cash balance was Rs 78 crore at end of FY13. Interest cost stands at 11-12%.
• The management has guided for 25%growth in the topline and 23-24% growth in the bottom line for FY13.