On Thursday, Talwalkars Better Value Fitness Ltd. (TBVFL) announced its Q3 resluts. Net profit of the company rose 26.91% to Rs 4.48 crore in the quarter ended December 2014 as against Rs 3.53 crore during the previous quarter ended December 2013. Sales rose 28.95% to Rs 47.22 crore in the quarter ended December 2014 as against Rs 36.62 crore during the previous quarter ended December 2013.
TBVFL is India's largest chain of health centres. It has 50,000 members and 33 ultramodern branches across major cities in the country.
In an interview with CNBC TV18, Anant Gawande, CFO, Talwalkars, said that in the last four years the number of employees has gone from 2300 to 5000, the number of square feet has from 4 lakh to 6.7 lakh square feet and the number of personal trainers have gone from 600 to 1600. Talking about the outlook of Q4, he said, "Q4 is a combination of two things. One is how is the January scheme which is the famous pledging your health and fitness scheme which goes and then there is Valentines Day which is approaching now. These two schemes combine to give us a solid set of revenue in the first two months of the year. January has gone off well. The second part of that story is opening of new gyms or taking pre-booking for new gyms. The new gym opening sometimes can get delayed by 15 days or a month because some municipal permission, water permission or electrical could get delayed".
Presently, the contribution of value added services as a percentage to revenues is at about 23-24 percent. "This was one parameter which we were able to pickup for our quarterly corporate presentation and I was also presently surprised to see that if there is 60 percent growth in the property base it should be 70-90 percent growth in value addition; it cannot be 160 percent which is what has happened just now", he added. They company believes that the revenue growth will be closer to 25%.
On Friday, the stock of the company closed down 1.94% at Rs. 327.95. It hit a high at Rs. 339.50 and low at Rs. 323.30.