Key highlights

For Q2, the cookers segment sales stood at Rs 184 crore, the cookware segment at Rs 97 crore, appliances segment at Rs 250.6 crore and others at Rs 17 crore

All regions performed well during the quarter though non south was more buoyant.

All product categories witness growth more so appliances. All product categories witness good growth in volume.

Introduced Judge brand in select product categories to tap income segments hitherto unaddressed. It has received good acceptance.

The company completed buyback of 1 lakh shares at an outflow of Rs 70 crore.

Free cash at the end of Q2 after buyback was of the order of Rs 140 crore.

UK subsidiary performance continues to be subdued after Brexit, however remains profitable.

 Exports not growing as expected due to deferment of purchase plans of key buyers.

New category Cleaning Solution has been growing well.

Demand situation largely alright and largely stable. Had good pre-festive and festive retail sales. Channel restocking in traditional channel not full back. Customer moving to different channels to buy products. Tradition channel confidence has not return back after GST.

Demand shift from traditional channel to non-traditional channel seen by the company.

The company saw healthy 17% volume-led growth in Q2 across the domestic segment. Volume growth stood at 15-24% across categories, driven by an early festive season and channel restocking post GST implementation.

Q2 – topline growth is 14.5% and adjusted for GST its excess of 20%. 24% is domestic rev growth adjusted for all taxes for Q2. Largely driven by volume.

540 Prestige Smart Kitchens (PSKs) at present..

Capex – Rs10-15 crore a year for FY18 and FY19.

South sales grew by 8% while whole country grew by 14%. Tamil has grown. Non south has grown faster than south.

Judge brand - Launch mass end product, will be 25% less price to prestige, distribution will be at all India level. It has launch Judge Products in Big Bazaar and online and got good response. By December will see whole India presence.

The company has not change any pricing, but competition has change pricing. They have increase price due to rise in commodity price.

Cleaning solution business will have Rs 32-35 crore sales for FY18.

Appliance had GST of 28% and last year it has VAT of 14.5%, as such impact was large for category.

Pressure cooker and cookware VAT was 5% and now GST is at 12%.

6.7% of ad spend to revenue for Q2 FY18.

Urban has outpaced rural growth.

Lot of promotions help cookware, also pre Diwali sales helped it to grow

Cleaning business - it was doubling every quarter. For Q2 sales was at Rs 6.6 crore vs Rs 3.3 crore last yr

Gross margin expanded slightly in Q2 due to product mix.

New formats helping distribution grow like online shopping, tv shopping, large format shop.

65K outlets the company's products are present, of which 16K it directly sell.

Competition has increased price across cooker, cookware and appliance. The company has taken price increased already before GST. It covers the increase in commodity cost.

Hopefully, export will pick up 2 qtrs from now.

Mgmt expects reasonable growth in 3Q despite pre-festive loading in Q2 aided by new product launches and healthy festive demand. It expects 15% standalone sales growth in FY18

The mgmt is looking at EBIDTA margin of 13% for FY18.