Analysts of IIFL Capital Services hosted the senior management of TTK Prestige (TTK) at IIFL’s Investor Conference in Mumbai. Management expects a gradual recovery from Q1FY25 onwards as share of wallet normalises. A full-fledged recovery though with a return to double digit top-line growth trajectory is expected only in FY26 with stable performance on the Ebitda margin front. While innovation will continue to be a lever, TTK would focus on categories within appliances such as mixer grinders, induction cooktops, chimneys, etc.
Expect gradual recovery:
The kitchen ware categories experienced a windfall gain during Covid and currently, this windfall is being witnessed in travel related categories. As the share of wallet normalises and more people move in the newly purchased homes (evident from the uptick in real estate sales recently), management believes that growth is expected to revive gradually in the medium term.
Ebitda margin in range of + 100 bps of current level:
TTK doesn’t indulge in unsustainable trade practices and has a very stable performance across quarters on both top-line growth as well as Ebitda margin. Growth is expected to pick-up from 1QFY25 onwards and management expects sales growth in FY25 to be in high single digit, ahead of GDP growth. FY26 would see better growth driven by replacement demand for kitchen ware products and materialisin g of recently launched rural projects. In terms of Ebitda mar gin, management expects to sustain the current levels + 100bps.
Focus on innovations to drive growth:
TTK has a healthy track record of innovations and would continue on this path to drive a pull oriented demand for its products. It has introduced split chimneys (as a solution to noisy chimneys in households). While cookers is a largely penetrated category in urban India, there is still room to increase penetration in rural, backed by government initiatives. TTK would also focus on segments within appliances such as mixer grinders, induction cooktops, etc.
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