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TTK Prestige Ltd.

BSE: 517506 Sector: Consumer
NSE: TTKPRESTIG ISIN Code: INE690A01010
BSE 00:00 | 22 Mar 7786.45 -20.40
(-0.26%)
OPEN

7788.80

HIGH

7965.00

LOW

7730.00

NSE 00:00 | 22 Mar 7796.45 14.05
(0.18%)
OPEN

7715.05

HIGH

7950.00

LOW

7715.05

OPEN 7788.80
PREVIOUS CLOSE 7806.85
VOLUME 3287
52-Week high 9290.00
52-Week low 5500.00
P/E 49.00
Mkt Cap.(Rs cr) 8,993
Buy Price 7786.45
Buy Qty 7.00
Sell Price 7786.45
Sell Qty 1.00
OPEN 7788.80
CLOSE 7806.85
VOLUME 3287
52-Week high 9290.00
52-Week low 5500.00
P/E 49.00
Mkt Cap.(Rs cr) 8,993
Buy Price 7786.45
Buy Qty 7.00
Sell Price 7786.45
Sell Qty 1.00

TTK Prestige Ltd. (TTKPRESTIG) - Chairman Speech

Company chairman speech

TTK PRESTIGE LIMITED ANNUAL REPORT 2010-2011 CHAIRMAN'S REPORT I have great pleasure in welcoming you all to the 55th Annual General Meeting of your company. GENERAL ECONOMIC SCENARIO Indian economy in the financial year 2010-11 represented a mixed outcome of growth and high inflation. The real GDP grew by 8.5% in 2010-11 after having clocked a growth of 8% in 2009-10. It is expected that the growth rate will continue to be in excess of 8%. The factors that cause concern are continuing inflationary trend in the articles of daily consumption as well as manufactured products. The interest rates are also hardening and the home loans and vehicle loans have turned expensive. These will tend to have an impact on the private final consumption expenditure (PFCE). If PFCE continues to grow at 8.3% as in 2010-11, GDP can grow at a faster rate in spite of the complex scenario. If the advance tax collections the first quarter FY 2011-12 is any indication then the economy is maintaining its growth and profitability. The industry in which your company operates is growing at comparatively higher growth rates and more players are attracted to this segment. FINANCIAL YEAR 2010-11 The Annual Report for the year has already been circulated. In spite of the Financial Year 2010-11 having witnessed high inflationary trends your Company was able to significantly improve customer franchise and register the highest ever growth rate of 50% over and above the 24% growth registered during last year. The salient features of the Company's performance for the year 2010-11 are * Sales grew by over 50% from Rs. 517 crores to Rs.776 crores. * All time high absolute value growth - around Rs.259 crores * Profit before extra ordinary items increased by 69.31% from Rs.71 crores to Rs.121 crores * Profit after tax increased by 59.71% from Rs.52 crores to Rs.84 crores * The operating EBIDTA margin was 16.24% as compared to 14.74% in the previous year. * The Company continues to be debt free except for deposits of Rs.2.25 Crores. and carries free cash balance/liquid investment of around Rs.76 Crores * Earnings per Share (before extra-ordinary/exceptional items) rose to Rs.74.46 from Rs.42.98 - a growth of 73.24% * The ratio of Operating EBIDTA/Capital employed (including free cash balance) in the Kitchen Segment rose to 67.3% from 65.02%. * As many as 49 SKUs across 13 categories were introduced during the year. * All the new products introduced by the company have been well received. CORPORATE AND BRAND SALIENCE The continuous process of customer centric innovation and product offerings coupled with innovative methods of reaching the consumer has earned several awards and recognitions for your Company. Your company received the coveted Business Standard 'Star SME award for 2009-10'. The award was given by the Honorable Prime Minister of India on 25th March 2011. This award evidences your Company's sustainable strategy for growth and high standards of Corporate Governance. You Company continues to enjoy the recognition of 'Super brand' in the Kitchen Appliances segment and also been voted India's most Trusted Kitchen Appliances Brand by a consumer survey conducted by the Economic Times. Your Company received the 'Retailer of the year' award from Asia Retail Congress for the year in recognition of your Company's successful establishment and operation of Prestige Smart Kitchen Retail Network across India, Franchise Award for the category of Home Products/Furnishings/Appliances by Franchise World and Best Franchiser in the Home Category by Franchise Plus. Prestige today is the leading brand in various product categories namely Pressure Cookers, Cookware, Value added Gas Stoves, Induction Cook Tops etc. Your company has just released brand new advertising campaign to reinforce smart products. DIVIDEND Taking into consideration the profits made and the need to preserve cash for very large capital outlays to fuel future growth of your company, your Board of Directors have recommended a dividend of Rs.12.50 per as against Rs.10.00 per share declared in the previous year. This dividend will account for a cash outflow of Rs.14.15 Crores by way of dividend and Rs.2.30 Crores by way of dividend distribution tax thus aggregating to Rs.16.45 Crores. FINANCIAL YEAR 2011-12: A PROMISING START During the first quarter ending 30th June 2011, your Company registered a growth of over 60% in sales as compared to the corresponding quarter of the previous year i.e. from Rs.148 Crores to Rs.237 Crores. The profit before tax for the same period increased by 60% from Rs.22.71 crores to Rs.36.32 crores. Your Company will continue to offer improved new range of products during the financial year in all product categories. PROPERTY DEVELOPMENT Salarpurias who are developing the Company's surplus land at Dooravaninagar, Bangalore have informed that all sanctions have been received and construction activities are commenced. The project will be developed as a office/residential complex and is named as 'MAGNIFICIA'. The project is expected to yield returns in the form of one time sale consideration from parts of residential blocks allocated to the Company and recurring rentals from office space allocated to the Company. These streams of income can be expected during calendar year 2014. EXPANSION PLANS As mentioned in the last year's speech and Directors' Report, your Company has adopted A Prestige in every Indian kitchen' as its Vision, which requires establishing large scale 'state of the art' manufacturing facilities keeping the long-term in view. Your Company is in the process of implementing a Rs.225 Crore expansion plan covering various locations at Hosur, Coimbatore, Roorkee, Gujarat and other parts of Western India. The entire capital expenditure plan is expected to be completed during the first half of the calendar year 2012. Creation of new capacities for pressure cookers in Roorkee has largely been completed and commercial production has just commenced. Commercial production in the expanded facility for pressure cookers in the Coimbatore factory is expected to commence in September 2011. As regards Gujarat, the acquisition of the land has been completed and the construction of the factory is slated to commence during the second quarter of the current financial year. The entire expansion plan is largely funded out of internal accruals. A sum of Rs.100 crores has been spent till 30th June 2011. Your Company will resort to transient borrowing during the current financial year to fund the capital expenditure pending accrual of internal cash generations. LOOKING FORWARD: Over the last two years your company has developed a strong vision and a long-term strategy to occupy the domestic kitchen domain and be seen as a Leading Total Kitchen Solution provider. The strong platform that your Company has laid has attracted interest from global players for trade partnerships with your Company. If fructified this will see the company get into significant new product offerings and also open new market opportunities. CONCLUSION I acknowledge the support received from the shareholders, employees and banks in putting the company into the track of sustainable growth. T.T Jagannathan Executive Chairman