The demand for Domestic kitchen and home appliances was robust during the quarter driven by stocking requirement channels ahead of the Q3 festive season for TTK Prestige | Q2 FY22 Conference Call
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Growth: value wise 5%-8%- 5% for cookers and cookware and 8% for appliances.
Crossed the pre covid volume levels.
Introduced 76 new SKUs during this quarter across all categories.
Pressure cookers and Gas Stoves on Svachh platform continues to gain momentum.
Prestige Xclusive chain strength stood at 643 in 366 towns contributing significantly to total sales.
Trade collections improved meeting the norms of the company
The company carries substantial free cash in excess of Rs 500 crores post capex.
The expanded facilities for non-stick cookware at Kharjan unit commenced commercial production from September 2021.
Channel mix: Going forward online to remain at 18%- 22%.
Company has 80% of the sales visibility happening at the secondary and tertiary levels mainly through digitalization.
Capex plans for FY22- 80-100 Crores.
Leaders in pressure cookers, cookware, induction cooker; Number 3 player in mixer grinder.
EBITDA Margins going forward: 15%- 16.5% and Double-digit revenue growth
GOING FORWARD: Most channels built their inventory during the end of Q2 to meet the demand during the festival season of October and early November. Further second of Half of FY 21 was a normal half-year without much impact on account of lockdowns except for the last fortnight of March 21 thus providing a larger base. Further the inflation caused by fuel prices and day to day items of consumption can have impact on the disposable incomes of quiet a few consumer segments. Against this background, the company does have a positive outlook for the remaining part of FY 22 subject to any unforeseen circumstances.
The company has slated for launch around 53 new SKUs during Q3 of FY 22.
Exports outlook is positive subject to logistic issues.
With the agricultural activities at normal levels, rural consumption is expected to stabilize.
In the face of continued hardening of key input and logistic costs, the company will proactively improve internal efficiencies and pursue a pricing policy to keep the EBIDTA margins at a healthy level.