TTK Prestige Q1FY13 results were in line with CRISIL Research’s expectations

·         Revenues grew by ~30% both y-o-y and q-o-q to Rs 3,025 mn, which demonstrates that the company has been able to maintain its business momentum.

·         EBITDA grew ~26% y-o-y to Rs 478 mn; however EBITDA margin declined 44 bps y-o-y to 15.8% because of higher raw material cost. We believe that higher raw material cost was driven by 18% y-o-y decline in the rupee vs. the US$ as TTK imports products that constitute ~30-40% of its overall sales.

·         PAT grew by 21% y-o-y to Rs 307 mn. PAT margin of 10.1% was lower than 10.9% in Q1FY12 because of higher interest costs.

CRISIL Research will release a detailed update based on its discussion with the company’s management on these results. Subsequently, CRISIL may revise its assessment.

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