Ttk prestige

Market Share: Prestige is India’s brand leader in the kitchenware and appliances categories and commands a ~37% market share in pressure cooker category, 31% market share in the cookware category and ~10% market share in the appliances category.

1. TTK PRESTIGE

About the Company:
• The TTK Group was founded in 1928 by Mr. T.T. Krishnamachari.
• TTK Prestige was incorporated as a private limited company on October 22, 1955, in
Chennai under the name TT Private Limited. It began manufacture of pressure cookers
in 1959 with technical collaboration from Prestige Group of the United Kingdom.
• The young dynamic businessman set up distribution for a wide range of products
ranging from Foods, Personal care products, writing instruments, Ethical products.
Distribution for various brands like Cadbury’s, MaxFactor, Kiwi, Kraft, Sunlight,
Lifebuoy, Lux, Ponds, Brylcreem, Kellogg's, Ovaltine, Horlicks, Mclean, Sheaffer’s,
Waterman’s etc.
• In the existing scenario, TTK group have 30 product categories with 7 group companies
and a turnover that cross 30 Billion rupees. The group company products reach every
continent of the world.
• The company went public in 1988, and changed to its present name in 1994. It is known
for its innovative marketing strategy, be it distributing pamphlet from helicopter in the
fifties or introducing the exchange scheme.

2. TTK Prestige Group Companies:

TTK PRESTIGE 2018-19 Annual Report Analysis

TTK PRESTIGE Income Statement Analysis
▪ Operating income during the year rose 13.0% on a year-on-year (YoY) basis.
▪ The company's operating profit increased by 18.0% YoY during the fiscal. Operating
profit margins witnessed a fall and down at 13.9% in FY19 as against 13.3% in FY18.
▪ Depreciation charges increased by 3.3% and finance costs increased by 10.0% YoY,
respectively.
▪ Other income grew by 103.1% YoY.
▪ Net profit for the year declined by 27.0% YoY.
▪ Net profit margins during the year declined from 14.0% in FY18 to 9.0% in FY19.


TTK Prestige Limited Consumer durables - Listed
TTK Healthcare Limited Pharmaceuticals, Medical devices &
Consumer products - Listed
TTK Protective Devices Limited Condoms
TTK Services Private Limited NRI Services and KPO
Cigna TTK Limited Health Insurance JV Company

3. TTK PRESTIGE Income Statement 2018-19
No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 18,649 21,069 13.0%
Other income Rs m 124 252 103.1%
Total Revenues Rs m 18,773 21,322 13.6%
Gross profit Rs m 2,474 2,920 18.0%
Depreciation Rs m 256 265 3.3%
Interest Rs m 41 45 10.0%
Profit before tax Rs m 2,302 2,863 24.4%
Tax Rs m 956 940 -1.8%
Profit after tax Rs m 2,635 1,924 -27.0%
Gross profit margin % 13.3 13.9
Effective tax rate % 41.6 32.8
Net profit margin % 14.0 9.0
Source: Company Reports



TTK PRESTIGE Balance Sheet Analysis
▪ The company's current liabilities during FY19 down at Rs 4 billion as compared to Rs
4 billion in FY18, thereby witnessing an decrease of -6.4%.
▪ Long-term debt down at Rs 543 million as compared to Rs 923 million during FY18, a
fall of 41.2%.
▪ Current assets rose 2% and stood at Rs 11 billion, while fixed assets rose 6% and stood
at Rs 5 billion in FY19.
▪ Overall, the total assets and liabilities for FY19 stood at Rs 17 billion as against Rs 16
billion during FY18, thereby witnessing a growth of 5%.

4. TTK PRESTIGE Cash Flow Statement Analysis
▪ TTK PRESTIGE's cash flow from operating activities (CFO) during FY19 stood at Rs
940 million on a YoY basis.
▪ Cash flow from investing activities (CFI) during FY19 stood at Rs -2 million on a YoY
basis.
▪ Cash flow from financial activities (CFF) during FY19 stood at Rs -843 million, an
improvement of 25% on a YoY basis.
▪ Overall, net cash flows for the company during FY19 stood at Rs 95 million from the
Rs 110 million net cash flows seen during FY18.

TTK PRESTIGE Cash Flow Statement 2018-19
Particulars
No. of
months
12 12
% Change
Year Ending Mar-18 Mar-19
Cash Flow from Operating
Activities
Rs m 1,268 940 -25.9%
Cash Flow from Investing Activities Rs m -31 -2 -
Cash Flow from Financing
Activities
Rs m -1,127 -843 -
Net Cash Flow Rs m 110 95 -13.7%
Source: Company Reports


Current Valuations for TTK PRESTIGE
▪ The trailing twelve-month earnings per share (EPS) of the company stands at Rs 166.5,
and decline from the EPS of Rs 228.1 recorded last year.
▪ The price to earnings (P/E) ratio, at the current price of Rs 5,980.0, stands at 24.7 times
its trailing twelve months earnings.

5. ▪ The price to book value (P/BV) ratio at current price levels stands at 7.1 times, while
the price to sales ratio stands at 3.9 times.
▪ The company's price to cash flow (P/CF) ratio stood at 31.7 times its end-of-year
operating cash flow earnings.

Per Share Data/Valuations
No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Sales per share Rs 1,614.6 1,824.2
TTM Earnings per share Rs 228.1 166.5
Diluted earnings per share Rs 227.1 165.8
Price to Cash Flow x 23.9 31.7
TTM P/E ratio x 24.5 24.7
Price / Book Value ratio x 8.4 7.1
Market Cap Rs m 69,069 69,368
Dividends per share (Unadj.) Rs 30.0 30.0
Source: Company Reports

6. Ratio Analysis for TTK PRESTIGE

• Solvency Ratios

• Current Ratio: The Company’s current ratio improved and stood at 2.8x during FY19,
from 2.6x during FY18. The current ratio measures the company's ability to pay short-
term and long-term obligations.


• Interest Coverage Ratio: The Company’s interest coverage ratio improved and stood
at 64.6x during FY19, from 57.3x during FY18. The interest coverage ratio of a
company states how easily a company can pay its interest expense on outstanding debt.
A higher ratio is preferable.


• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at 16.5% during
FY19, from 25.8% during FY19. The ROE measures the ability of a firm to generate profits
from its shareholders capital in the company.

• Return on Capital Employed (ROCE): The ROCE for the company declined and
down at 23.8% during FY19, from 32.7% during FY18. The ROCE measures the ability
of a firm to generate profits from its total capital (shareholder capital plus debt capital)
employed in the company.

• Return on Assets (ROA): The ROA of the company declined and down at 11.9%
during FY19, from 17.1% during FY18. The ROA measures how efficiently the
company uses its assets to generate earnings.

7. Key Ratio Analysis

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Current ratio x 2.6 2.8
Debtors’ Days Days 51 53
Interest coverage x 57.3 64.6
Debt to equity ratio x 0.1 0.0
Return on assets % 17.1 11.9
Return on equity % 25.8 16.5
Return on capital employed % 32.7 23.8
Source: Company Reports

Share of TTK Prestige:
• Over the last one year, TTK PRESTIGE share price has moved up from Rs 4,874.3 to
Rs 5,980.0, registering a gain of Rs 1,105.7 or around 22.7%.
• Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 22,987.8
(up 0.9%). Over the last one year it has moved up from 20,232.6 to 22,987.8, a gain of
2,755 points (up 13.6%).
• Overall, the S&P BSE SENSEX is up 3.8% over the year.