OTHER GROUP COMPANIES
market

Talwalkars Better Value Fitness (Q2 FY14)

Talwalkars Better Value Fitness (TBVF) reported ~24% yoy rise in net revenues driven by increase in consolidated gym base to 147 from 129 in Q2 FY13 of which 103 are owned gyms

January 01, 1970 5:30 IST | India Infoline News Service
CMP Rs139, Target Rs190, Upside 36.7%

  • Talwalkars Better Value Fitness (TBVF) reported ~24% yoy rise in net revenues driven by increase in consolidated gym base to 147 from 129 in Q2 FY13 of which 103 are owned gyms

  • EBIDTA margin remained largely flat as higher admin expenses (probably due to an enlarged gym base yoy, advt expenses to support August launch etc) were offset by lower staff costs; company indicated that at same store level, revenue generation at August scheme was higher yoy with marginal rise in ad expenses

  • PAT increased ~21% yoy as impact of lower interest cost (due to treasury income and August scheme cash flows) was countered by accelerated depreciation on key assets

  • We expect continued traction from core gym business while newly launched services like Zumba, NuForm and Reduce would drive incremental EBIDTA; retain BUY with unchanged 9-12mth target Rs190. 

Results table (consolidated)
(Rs m)
Q2 FY14
Q2 FY13
% yoy
Revenues
624
502
24.3
Staff
(130)
(109)
19.3
Admin & other expenses
(181)
(139)
30.0
Operating profit
312
253
23.2
OPM (%)
50.1
50.5
(43) bps
Depreciation
(77)
(38)
106.1
Interest
(22)
(31)
(30.6)
PBT
213
185
15.4
Tax
(52)
(56)
(6.8)
Effective tax rate (%)
24.4
30.2
(582) bps
Minority int
(14)
(7)
87.8
Reported PAT
148
122
21.3
Source: Company, India Infoline Research

Financial summary
<

OPEN A DEMAT ACCOUNT & Get
FREE Benefits Worth 5,000

BLOGS

Open Demat Account
  • 0

    Per Order for ETF & Mutual Funds Brokerage

  • 20

    Per Order for Delivery, Intraday, F&O, Currency & Commodity

Y/e 31 Mar (Rs m)
FY12
FY13
FY14E
FY15E
Revenues
1,194
1,509
1,864
2,240
yoy growth (%)
28.6
26.4
23.6
20.1
Operating profit
543
726
899
1,080
OPM (%)
45.5
48.1
48.2
48.2
Reported PAT
221
300
355
462
yoy growth (%)
37.5
36.2
18.0
30.2
EPS (Rs)
9.1
12.5
14.7
19.1
P/E (x)
15.2
11.2
9.5
7.3
P/BV (x)
2.3
1.7
1.5
1.3