TTK PRPRESTIGE 2022-23 Annual Report Analysis

TTK PRESTIGE has announced its results for the year ended March 2023. Let us have a look
at the detailed performance review of the company during FY22-23.

TTK PRESTIGE Income Statement Analysis

 Operating income during the year rose 2.0% on a year-on-year (YoY)

basis.
 The company's operating profit decreased by 15.4% YoY during the
fiscal. Operating profit margins witnessed a fall and stood at 13.0% in
FY23 as against 15.7% in FY22.
 Depreciation charges increased by 20.1% and finance costs increased by
47.6% YoY, respectively.
 Other income grew by 30.3% YoY.
 Net profit for the year declined by 16.5% YoY.
 Net profit margins during the year declined from 11.2% in FY22 to 9.2%
in FY23.

TTK PRESTIGE Income Statement 2022-23

No. of Months Year Ending 12 Mar-2022 12 Mar-2023 % Change
Net Sales Rs m 27,225 27,771 2.0%
Other income Rs m 351 457 30.3%
Total Revenues Rs m 27,575 28,228 2.4%
Gross profit Rs m 4,265 3,606 -15.4%
Depreciation Rs m 442 530 20.1%
Interest Rs m 68 101 47.6%
Profit before tax Rs m 4,106 3,432 -16.4%
Tax Rs m 1,052 882 -16.1%
Profit after tax Rs m 3,054 2,550 -16.5%
Gross profit margin % 15.7 13.0
Effective tax rate % 25.6 25.7
Net profit margin % 11.2 9.2

Source: Accord Fintech, Equitymaster.

TTK PRESTIGE Balance Sheet Analysis
 The company's current liabilities during FY23 down at Rs 5 billion as compared to Rs
6 billion in FY22, thereby witnessing an decrease of -17.7%.

 Long-term debt stood at Rs 408 million as compared to Rs 0 million during FY22, a

fall of 0.0%.

 Current assets rose 7% and stood at Rs 19 billion, while fixed assets rose 7% and
stood at Rs 7 billion in FY23.

 Overall, the total assets and liabilities for FY23 stood at Rs 26 billion as against Rs 24
billion during FY22, thereby witnessing a growth of 7%.

TTK PRESTIGE BALANCE SHEET AS ON MARCH 2023

No. of Months Year Ending 12 Mar-22* 12 Mar-23* % Change

Net-worth Rs m 17,296 19,385 12.1

Current Liabilities Rs m 6,024 4,955 -17.7

Long-term Debt Rs m 0 408 0.0

Total Liabilities Rs m 24,145 25,875 7.2

Current assets Rs m 17,344 18,615 7.3

Fixed Assets Rs m 6,801 7,260 6.7

Total Assets Rs m 24,145 25,875 7.2

Source: Accord Fintech, Equitymaste

KEY TRIGGERS AND STRATEGIES :

Increasing urbanization, demographics to spur demand
Increasing urbanisation and fast changing demographics have led to a growing
demand for additional homes, which in turn have increased demand for kitchen
appliances. Shrinking household sizes due to nuclearization, coupled with higher
incomes, are expected to drive demand for household products, including
kitchenware.
Innovation, diversification to boost market share

TTK Prestige has evolved from a pressure cooker company to a total kitchen solution
provider. It has refurbished its product portfolio by introducing gas stoves, mixer-
grinders, domestic kitchen appliances, non-stick cookware, chimneys, hobs, and
modular kitchen solutions.
The company has transformed its distribution model by launching exclusive retail
outlets known as ‘Smart Kitchen’. The company is well placed to capitalised on the
consumption boom led by the demographic shift towards nuclear families in India.
Additionally, TTK Prestige has incorporated cutting-edge technologies such as
AI/ML ,chatbots, and RPA to improve employee productivity and customer
experience.