Key highlights

• The net sales for June 2014 quarter grew by 10% to Rs 336.39 crore driven by efforts to market new models and improvement in its key southern market. OPM declined by 129 bps to 12.2%. The net profit was stagnant at Rs 25.81 crore

• The mgmt said that consumer sentiment did not show marked improvement. Key southern markets showing some signs of recovery. Power cuts in Tamil Nadu eased from June 2014. Non-south market remained sluggish.

• Under-absorption of overheads in their recent facilities in Gujarat and Maharashtra has impacted OPM.

• The cooker segment sales grew by 13% to Rs 135 crore, the cookware segment sales grew by 17% to Rs 71 crore, appliances segment sales grew by just 1% to Rs 140 crore, while others de-grew by 38% to Rs 11 crore. Export grew by 43% to Rs 16.35 crore driven by foray into new markets.

• In appliance segment, sales growth was almost flat due to rice cooker, which de-grew by 25%. Induction cooktop was flat while mixer grinder did well.

Ad spend to sales ratio was 6.2% in Q1.

• South has grown by 12%, while non-south markets were flat in Q1.

• The company has launched water filter in Q1 FY15. The mgmt expects Rs 30 crore sales from it in FY15.

• The company will launch lots of new products in present categories in next 6 months.

• The company added 10 Prestige Smart Kitchen stores in Q1, taking total number to 546.
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  The net borrowing of the company as on 30^th June 2014 was nil.

• There will be no expansion for next 2 – 3 years.

• The mgmt expects 20% - 25% growth at top-line for FY15. Expects a flat growth in induction cooktop in FY15.