Stove Kraft tumbles after Q1 PAT slips 40% YoY

4 Aug 2022 , 04:12 PM

The companys net profit fell 6.6% and revenues increased 5.2% in Q1 FY23 over Q4 FY22. In Q1 FY23, the firm derived 24.1% of its revenue from mixers/small appliances/others products, followed by 23.1% revenue from nonstick cookware products and 21.5% revenue from pressure cookers. Stove Krafts profit before tax (PBT) stood at Rs 10.6 crore in Q1 FY23, up 53.4% QoQ and down 21.7% YoY. EBITDA was reported at Rs 22.4 crore in Q1 FY23, up 6.2% QoQ and down 0.6% YoY. EBITDA margin stood at 8.1% in Q1 FY23, lower than 10.5% in Q1 FY22. Margin was flat compared with Q4 FY22. Total expense climbed 30.77% YoY to Rs 263.01 crore in Q1 FY23. Cost of raw material consumed stood at Rs 169.82 crore (up 31.49% YoY) and employee expenses stood at Rs 31.46 crore (up 31.96% YoY). Rajendra Gandhi, managing director said, In Q1FY23, we have seen a good growth of 28% YoY in topline despite a slow start. Ours is a seasonal business with the first and last quarters being smaller than the second and third quarters. During the current quarter, we took a price hike of ~3%-4% across product categories. The raw material prices are no longer as volatile as they were last year. We are hoping that they will continue to be at reasonable levels for us to be able to improve our margins without any further price hikes for the festive season. As you would have seen by our recent filing that we have forayed into physical retail and I am pleased to announce that we have opened our first company owned and company operated retail store for the Pigeon brand in Frazer town, Bengaluru. Since then, the Company has opened 4 additional stores in Bengaluru taking the total count to 5 stores. The stores will offer entire range of products including cookware, cooktops, small appliances and LED products sold under the brand. It is an important milestone in the growth journey of Stove Kraft and will make us more accessible to the consumer. Over next 12-18 months, we expect the total store count to be about 40 stores spread across the state of Karnataka. Stove Kraft is one of the leading brands for home & kitchen appliances in India. It is one of the dominant players for pressure cookers and amongst the market leaders in the sale of free-standing hobs, cooktops and non stick cookware. Powered by Capital Market – Live News