Prestige Estates

The biggest market for TTK Prestige is tamil Nadu, contributing 23% to total sales and the state is grappling with a terrible power situation, with some parts having 18 hours power cut. And this state has shown a 40% drop in earnings in Q3 and thanks to the strong growth in North and East, the company did well, at least on the topline. For Q3Fy13, the company posted a net sales at Rs.437 crore, up 30% on YoY. It showed a 33% rise in operating expenses and 22% rise in interest  outgo but a lower tax outgo saved the day and the company ended the quarter with a net profit at Rs.44 crore, up 29% YoY and much better sequentially, up 47%. Two reasons for the better numbers – firstly, the festive demand  and secondly, thanks to the cap on LPG cylinders, demand for its pressure cookers and induction cooking range went up.

Currently 4% of the company’s turnover comes from exports and it plans to take up a notch to 5% in current fiscal. It is scouting around for acquisitions in Europe, in the range of around Rs.300 crore. On an equity of Rs.11.32 crore, annualized EPS stands at Rs.124 and the management has guided an EPS of Rs.140 for FY13. EPS in FY12 was at Rs.100. It added 25 new networks to its Prestige Smart Kitchen network, taking the total tally to 390. Its expansion project at Gujarat is on schedule and it hopes to commence production in Jan 2013. It has spent Rs.257 crore on total capex and another Rs.75 crore is expected to be spent before end of FY13. Its debt standa at Rs.123 crore. In current Q1, the company had given a guidance of a growth of 25% in revenue but all that will now depend on Q4 and if the power situation improves in Tamil Nadu, it could have a bumper Q4.