CRISIL IER Independent Equity Research

TTK Prestige Ltd

Q1FY15 results first cut: Earnings in line with expectations
Industry:

July 15, 2014

Household Durables

TTK Prestige Ltds (TTKs) Q1FY15 revenues were above while earnings were in line with
CRISIL Researchs expectations. Highlights of the results are mentioned below; this will be
followed by a detailed quarterly update.

Revenues grew 9.8% y-o-y (up 23.4% q-o-q) to 3,364 mn in Q1FY15 from 3,063 mn in
Q1FY14.

EBITDA margin contracted 128 bps y-o-y (up 183 bps q-o-q) to 12.2% in Q1FY15 against
13.5% in Q1FY14. Raw material cost as a percentage of sales declined 318 bps y-o-y to
55.1% from 58.3% in Q1FY14. Other expenses and employee cost went up 31.5% and
14.8% y-o-y respectively.

Adjusted PAT remained flat y-o-y (up 42.5% q-o-q) at 258 mn. The company reported
EPS of 22.2 in Q1FY15 against 22.7 in Q1FY14.

KEY STOCK STATISTICS

NIFTY/SENSEX
NSE/BSE ticker
Face value ( per share)
Shares outstanding (mn)
Market cap ( mn)/(US$ mn)
Enterprise value ( mn)/(US$ mn)
52-week range ()/(H/L)
Beta
Free float (%)
Avg daily volumes (30-days)
Avg daily value (30-days) ( mn)

CRISIL Researchs current IER coverage on TTK Prestige Ltd

In our report dated June 05, 2014, we had assigned a fundamental grade of 5/5 (excellent
fundamentals) and fair value of 3,050 per share. We are reviewing the results in detail and
will release an update report after our discussion with the management. The outstanding
fundamental grade and fair value may undergo a revision in the update report.

7527/25211
TTKPRESTIG
/TTKPRES
10
11.6
40,692/676
40,654/675
4,364/2,693
1.0
29.6%
28,734
107

SHAREHOLDING PATTERN
100%
80%

7.8%
4.4%
16.0%

6.4%
2.8%
20.8%

6.4%
1.4%
22.1%

6.7%
2.1%
20.9%

71.9%

70.0%

70.0%

70.4%

Jun-13

Sep-13

Dec-13

60%

KEY FORECAST
( mn)
Operating income
EBITDA
Adj net income*
Adj EPS ()
EPS growth (%)
Dividend yield (%)
RoCE (%)
RoE (%)
PE (x)
P/BV (x)
EV/EBITDA (x)

40%

FY12
11,046
1,781
1,133
99.9
34.7
0.4
63.8
47.5
35.0
13.9
22.5

FY13
13,598
2,121
1,329
117.0
17.1
0.5
47.5
39.0
29.9
10.0
19.1

FY14#
12,939
1,602
1,049
90.0
(23.1)
0.5
25.9
21.4
38.9
7.0
25.4

FY15E
14,725
1,967
1,759
151.0
67.8
0.9
26.5
26.9
23.2
5.6
20.1

FY16E
17,254
2,543
1,712
146.9
(2.7)
1.1
29.8
21.9
23.8
4.8
15.2

20%
0%

Promoter

TTK Prestige
CNX 500

Mar-14
Others

1-m
-6%
5%

Returns
3-m
6-m
11%
-2%
4%
1%

12-m
4%
4%

ANALYTICAL CONTACT
Mohit Modi (Director)
Sayan Das Sharma
Bhaskar Bukrediwala
Client servicing desk
+91 22 3342 3561

Q1FY15 Results Summary

Net sales
Raw materials cost
Raw materials cost (% of net sales)
Employee cost
Other expenses
EBITDA
EBITDA margin
Depreciation
EBIT
Interest and finance charges
Operating PBT
Other income
Extraordinary Income/(expense)
PBT
Tax
PAT
Adj PAT
Adj PAT margin
No. of equity shares (mn)
Adj EPS ()

DII

PERFORMANCE VIS--VIS MARKET

* FY15 earnings include one-time other income of 710 mn from the real estate project,
which is expected to accrue in H2FY15
# Based on abridged financials, CMP: Current market price
Source: Company, CRISIL Research estimates

( mn)

FII

Q1FY15

Q4FY14

Q1FY14

q-o-q (%)

y-o-y (%)

3,364
1,854
55.1%
254
845
411
12.2%
57
354
6
348
12
360
102
258
258
7.7%
11.6
22.2

2,725
1,492
54.8%
215
735
283
10.4%
38
246
13
232
10
81
323
61
262
181
6.6%
11.6
15.6

3,063
1,786
58.3%
221
643
414
13.5%
24
390
31
359
17
376
118
258
258
8.4%
11.3
22.7

23.4
24.3
36bps
18.2
15.0
45.1
183bps
51.3
44.2
(55.6)
49.9
23.2
(100.0)
11.5
67.4
(1.5)
42.5
103bps
42.5

9.8
3.8
-318bps
14.8
31.5
(0.6)
-128bps
138.3
(9.2)
(80.8)
(3.1)
(29.5)
NM
(4.3)
(13.8)
0.1
0.1
-75bps

(2.5)

Source: Company, CRISIL Research

For detailed initiating coverage report please visit: www.ier.co.in
CRISIL Independent Equity Research reports are also available on Bloomberg (CRI <go>) and Thomson Reuters.

mohit.modi@crisil.com
sayan.sharma@crisil.com
bhaskar.bukrediwala@crisil.com
clientservicing@crisil.com

CRISIL IER Independent Equity Research

Explanation of CRISIL Fundamental and Valuation (CFV) matrix
The CFV Matrix (CRISIL Fundamental and Valuation Matrix) addresses the two important analysis of an investment making process Analysis
of Fundamentals (addressed through Fundamental Grade) and Analysis of Returns (Valuation Grade) The fundamental grade is assigned on a
five-point scale from grade 5 (indicating Excellent fundamentals) to grade 1 (Poor fundamentals) The valuation grade is assigned on a fivepoint scale from grade 5 (indicating strong upside from the current market price (CMP)) to grade 1 (strong downside from the CMP).

CRISIL
Fundamental Grade
5/5
4/5
3/5
2/5
1/5

Assessment
Excellent fundamentals
Superior fundamentals
Good fundamentals
Moderate fundamentals
Poor fundamentals

CRISIL
Valuation Grade
5/5
4/5
3/5
2/5
1/5

Assessment
Strong upside (>25% from CMP)
Upside (10-25% from CMP)
Align (+-10% from CMP)
Downside (negative 10-25% from CMP)
Strong downside (<-25% from CMP)

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Last updated: May, 2013

Analyst Disclosure
Each member of the team involved in the preparation of the grading report, hereby affirms that there exists no conflict of interest that can bias
the grading recommendation of the company.

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