Key highlights

The mgmt said that general consumer sentiment continued to be somewhat sluggish though some improvement seen in June 2015. Monsoon activity seemed to be closer to normal in many regions.

The net sales for June 2015 quarter grew by 4% to Rs 348.6 crore. The growth was led by cookware and appliance. .The net profit declined by 17% to Rs 21.96 crore.

Domestic Sales Grew by 6% to Rs 349 crore. In general, most markets saw improvement towards the end of the quarter. Exports saw a drop of 46% to Rs 7.78 crore as export orders were deferred to second half.

For Q1, the cooker segment sales grew by 5% to Rs 130 crore, the cookware segment sales grew by 14% to Rs 64 crore, appliances segment grew by 6% to Rs 149 crore while others remained flat at Rs 13 crore. Microwave cookers de-grew by 91% to Rs 1 crore

In terms of volumes, induction cook top, cookware, rice cookers and gas stoves grew in double digits. Other cookers were largely flat or de-grew.

For appliances, the top three products were gas stoves contributing Rs 47 crore, mixers contributing Rs 27 crore and induction cooktop contributing Rs 35 crore.

The company witnessed market share gain of 200 bps in pressure cooker segment and 300 bps in induction cooktop segment over the past one year.

Of total sales, 55% was in the south, 45% was from the non-southern markets. North and West India grew faster than South. In South, Tamil Nadu, Andhra Pradesh, Karnataka did well while Kerala saw sluggish growth.

The company has taken price hike of 4% in April 2015 basically in pressure cooker and cookware. This started reflecting in the quarter due to liquidation of older inventory at earlier prices.

The mgmt said that E-tailing more active but not as disruptive as was in FY 14-15.

The company has created a modern fulfillment centre in Hosur to serve e-commerce including company's own. The company will establish three more centres across India during this fiscal. A host of products will be available for sale through this channel.

The company has already entered into arrangements with leading E-Commerce Platforms. The company is also in the process of concluding tailor made products and promotions for each of such players

Health of PSK network (565 in number as of end June) fortified; same store growth was 10% for the quarter as compared to negative growth in the previous year. The mgmt is focusing on driving higher footfalls and throughputs from the existing PSK stores and will add new stores moderately.

To put cookers category back on growth trajectory, the company is putting in efforts to overhaul the range with new shapes, colors and designs. Focus is on bringing in new types of induction friendly cookers.

The strong cookware growth was seen as a result of the launch of "Signature" cookware which is a premium product. This has been heavily advertised and is currently the most durable non-stick cookware available in market today. The company is witnessing a lot of traction already and considering that this has just been launched, expects growth trend to continue.

Appliances segment saw launch of India's first convertible gas stove and hobtob. It is the first to be based on European technology as opposed to Chinese technology.

The mgmt said that for induction cooktop a slew of new releases are planned to cater to various price points and increase market share. A special premium product in terms of an "automatic keto" is planned which will eliminate the requirement of reheating

The company is looking at kitchen woods as a segment where they plan to offer chimneys that are in excess of price point of Rs 35000.

The mgmt said that it is fully committed to water purifier category. The category is highly crowded. The company will in future will launch products at various price points instead of one at present.

The mgmt said that it will expand in other parts of world like USA, Europe to increase its export numbers. The company is looking at opportunities here to launch its own brand but without going for manufacturing facility.

The company carried out a VRS scheme in the Hosur Plant and about 15% of the workmen opted for the same which resulted in one-time exceptional charge of Rs 3.74 crore.

The mgmt said that stable lower commodity prices will have a positive impact on margins, however in case prices decline further, there will pressure to decrease selling prices too.