ICRA EQUITY RESEARCH SERVICE

TTK PRESTIGE LIMITED

May 18, 2011
Fundamental Grade ICRA Online has assigned the Fundamental Grade 4 to TTK Prestige Limited (TTKP). The Fundamental Grade 4 assigned to TTKP implies that the company has strong fundamentals. TTKP has posted strong growth over the past five years, outperforming the underlying industry growth. Favourable industry prospects, product introductions at regular intervals, foray in new product segments and markets have been the key growth drivers for the company. TTKP has followed a single brand strategy and has successfully leveraged it to expand its presence in segments other than pressure cookers. This strategy has allowed TTKP to emerge as a complete Kitchen appliances company with presence in pressure cookers, non-stick cookware, kitchen electrical appliances and gas stoves. In addition to strong brand franchise, TTKP also benefits from its wide distribution network, particularly in the Southern and Western markets and increasing presence through exclusive Prestige Smart Kitchen stores. We expect the company to remain on the growth trajectory as it continues to benefit from Indias favourable consumption story, high growth expectation from smaller towns and rural markets, where penetration levels for most kitchen appliances are still low and more importantly the companys focus on introducing new products and increasing reach in newer markets. Though the core business would remain its key value driver, the company has some surplus land in Bangalore where it has entered into a joint development agreement with real estate developer, which can provide some additional upside to earnings in the long-run. Grading Positives TTKPs key strengths includes (a) its leadership position in the organised pressure cooker market, (b) strong brand equity and distribution network, allowing it to expand its business across product segments in the kitchen appliances market, (c) strong growth prospects driven by favourable demographics. Key upside to our estimates include higher than estimated growth of branded segment of the industry on shift to quality by consumers. Apart from its strong business position, TTKP has demonstrated robust financial performance over the past five years characterised by high RoCE, strong operating cash flows and debt-free status. Grading Sensitivities Notwithstanding the growth prospects, the company continues to face stiff competition and pricing pressure from unorganised segment for majority of its business. Competition from other branded players is also significant as they have been expanding their product profile and benefit from their extensive distribution reach. Increasing input material prices also pose a threat to companys margins.

Industry: Home Appliances

ICRA Online Grading

Fundamental Grading of 4 indicates strong fundamentals

Key Stock Statistics Bloomberg Code Current Market Price* (Rs.) Shares Outstanding (crore) Market Cap (Rs. crore) 52-Week High (Rs.) 52-Week Low (Rs.) Free Float (%) Beta P/E on 2011-12 EPS Estimate (x)
*As on 13th May 2011

TTKPT IN 2,357 1.13 2,668 2,609 575 25.1% 0.85 25.0

Shareholding Pattern (31st March, 2011)

FIIs 6% DIIs 5% Others 14%

Promoters 75%

Source: BSE Website Share Price Movement (24 months)

Share Price Movement (index to 100)
1,800 1,500 1,200 900 600 300 -

Mar-06

TTKP's Share Price

Source: Bloomberg

Key Financials (Consolidated)

Operating Income (Rs. crore) EBITDA Margin (%) PAT Margin (%) Fully Diluted EPS (Rs.) EPS Growth (%) P/E* (x) P/BV* (x) RoE RoCE EV/EBITDA* FY10A 505.2 15.3% 10.3% 46.3 134.3% 50.8 21.9 51.3% 84.3% 33.7 FY11A 763.6 15.9% 11.0% 74.0 59.7% 31.9 13.9 53.4% 80.4% 21.5 FY12E 1,006.2 15.9% 10.5% 94.2 27.4% 25.0 9.6 45.4% 57.5% 16.9 FY13E 1,248.3 16.1% 10.6% 117.7 24.8% 20.0 6.8 39.8% 50.3% 13.2 1

Source: Company, ICRA Online estimates *on fully diluted basis

Mar-11

Mar-07

Mar-08

Mar-09

Mar-10

Sep-08

Sep-06

Sep-07

Sep-09

Sep-10

ICRA Equity Research Service

TTK Prestige Limited

SUMMARY A well-known kitchen appliances company with leading position in pressure cookers and non-stick cookware TTK Prestige Limited (TTKP) is positioned as the largest organized player in the fast-growing domestic kitchen appliances industry with a market share in access of 35-40% in the organized segment of the pressure cooker and non-stick cookware market. TTKP is a well-known name in the kitchen appliances segment and has over the years evolved into a total kitchen solutions company from predominantly being an outer-lid pressure cooker maker with presence concentrated in the Southern region. TTKP is one of those few consumer durable companies which have effectively been able to implement a strategy in expanding a single brand across product segments and build a sizeable business across segments. The company benefits from its strong brand, its wide spread distribution reach in Southern India, its expanding trade model comprising of exclusive retail stores besides strengths in product innovation. Strong brand recognition and extensive distribution set up Over the years, TTKP has built strong brand recognition as a leading kitchen appliances company. Besides product innovation in line with changing consumer needs; effective product promotion and positioning have helped the company develop a strong brand which is being associated with trust, safety and reliability. The company has also built an extensive pan India distribution network reaching about 25,000 dealers which is one of the critical factors for a consumer driven industry like kitchen appliances. Apart from the traditional distribution channels such as dealers, authorised redistributors and institutional sales, TTKP has also ventured into the company branded Prestige Sma rt Kitchens (PSK) exclusive outlets. Besides enhancing visibility of the brand, these exclusive retail outlets with modern ambience offer entire range of TTKPs products under one roof thereby providing convenience and unique shopping experience to the customers. Favourable demographics + enhanced reach + expansion in product range to sustain growth momentum Over the past five years, TTKP has posted a strong growth of 28% CAGR in operating income driven by a confluence of growth drivers. Favourable industry dynamics, strong brand recognition, expansion in product profile, and foray in newer markets have been the key factors. We expect the company to continue to ride on this growth momentum driven by favourable industry dynamics rising disposable income levels, rising consumerism and its strategy to augment its geographical presence especially in newer markets and semi-urban areas while also maintaining its focus on enhancing its product offerings. Overall, we expect this to translate into revenue growth of ~26% CAGR between FY11 and FY14 to Rs. 1,518 crore. We expect TTKPs EBITDA to grow at CAGR of 26% between FY11-FY14e from Rs. 122 crore to Rs. 246 crore and net earnings to also post a similar growth during the same period. Given the strong operating cash flows, sizeable cash reserves, we dont expect any equity dilution to fund the Rs. 210 crore planned capital expenditure programme. Asset light model + strong brand equity supports high return indicators At present, TTKP manufactures its traditional products pressure cookers and non-stick cookware in-house, while it outsources manufacturing of kitchen electric appliances and gas stoves to dedicated vendors and suppliers in India and China. The outsourcing model offers several operational advantages to the company as it allows it to focus on its key strengths in marketing, distribution and product development. Additionally, strong acceptance for companys products also results in lower working capital engagement (i.e. NWC/OI - 7% in FY10). With strong brand equity (proving pricing flexibility), strong distribution network, low engagement in capital (in capacities and working capital), improving operating leverage, low interest burden and tax incentives (at one of its site), TTKP has been able to post very high RoCEs, ranging between 40-80% in the past. We expect the company to continue to generate high return indicators in the future although some moderation is likely in the near term given the sizeable capital expenditure plans.
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ICRA Equity Research Service

TTK Prestige Limited

With current high levels of capacity utilizations, TTKP has outlined a large capital expenditure towards capacity expansion with a view to cater to increased demand. The company plans to double its capacity of pressure cookers from 4.8 million units to 9.6 million over the next two years. In the non-stick cookware segment, the company also plans to set up a Greenfield manufacturing facility in Gujarat with a capacity of 6 million units per annum. Competition from unorganised segment and other branded players Notwithstanding the favourable growth prospects, TTKP continues to face intense competition from unorganized players in most of its business segments. Other branded players are also expanding their product range and with their extensive distribution reach continue to be a significant competition to TTKP. Further, with the company expanding its presence in not so strong markets in North & East and rural markets, it is likely to face pricing pressure from cheaper unorganized players given the high price elasticity in these m arkets. Although the companys operating margins have improved considerably over the past two years on back of improving operating leverage, fiscal benefits at its Uttarakhand plans and lower input prices (in FY10), sharp fluctuation in metal prices could exert pressure on companys margins. That said, strong brand recognition allows the company to pass on the cost increase to end customers.

ICRA Equity Research Service

TTK Prestige Limited

MARKET POSITION AND BUSINESS OUTLOOK TTK Prestige (TTKP), part of the Bangalore-based Rs. 1,100 crore TTK group is a branded player in the kitchen appliances segment and enjoys strong market position with over 35-40% market share in the organised pressure cooker and non-stick cookware segment in India. From predominantly being a branded pressure cooker player, TTKP has evolved its business model to emerge as a total kitchen solutions company with presence spread across pressure cookers, non-stick cookware, kitchen electric appliances and gas stoves. With a strategy to have presence across the entire range of kitchen appliances, the company has effectively diversified its revenue mix with pressure cookers now accounting for less than 50% of turnover. Strong growth across segments, regular product innovations and launches and foray in newer markets have helped the company post a healthy growth of 28% CAGR over the past five years (i.e. FY07-11). The high growth momentum is likely to continue in the medium term fuelled by favourable business dynamics, multiple product launches, increasing presence in fast growing kitchen electric appliances segment and increasing distribution reach in not so strong markets in North and East. TTKP has a pan India presence through ~25,000 direct dealers apart from the company branded exclusive retail outlets. The company is particularly strong in Southern and Western parts of the country and has been making in-roads in North & East as well. Positioned as a leading player in the domestic pressure cooker market with strong brand equity With over 50 years of presence in manufacturing pressure cookers in India, TTKP is positioned as the leading player in the domestic pressure cooker market with an estimated 35-40% market share of the organised segment. The pressure cooker market in India is estimated at 20 million units p.a. and has been growing at around 8-9% p.a. The market is characterised by low entry barriers and high competitive intensity with 50% of the market dominated by organised players with rest distributed between regional and un-organised players. Among organised players, TTKP and Hawkins are the leading players, collectively accounting for over 80% of the organised segment.
60.0 50.0

Trend in Pressure Cooker (Organised Segment)

CAGR (%) - 2.6%

15% 10%

Trend in TTK's Pressure Cooker Sales

300 250
Volume CAGR (%) - 14.1%

27.45 23.75
241 220

30 25
20 15

49.3

in Lac Units

46.5

44.0

Rs. Crore

41.7

40.2

36.2

20.0 10.0 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 Pressure Cooker Production

-5% -10% -15% Growth (%) - RHS

50
-

137

100

163

186

30.0

36.9

41.4

42.0

40.0

5% 0%

200 150

16.21

18.26

21.33

10 5
0

FY06

FY07

FY08

FY09

FY10

Sales (in Rs. Crore)

Volumes (in Lacs) - RHS

Source: CMIE, Company, ICRA Online Estimates; Graph 1 captures data for a sample of organised players

TTKP currently dominates the organised segment with 35-40% market share and its pressure cooker business has grown at a CAGR of 15.1% during the last five years (i.e. FY06-FY10) with majority of this growth being volume driven. Regular product innovations, strong brand and shift towards the organised segment have helped the companys pressure cooker business in consistently outperforming the market growth over the past five years. The market for pressure cookers is bifurcated between outer lid and inner lid. Largely influenced by cooking styles and needs, the Southern market is dominated by outer lid pressure cookers, while the Northern market usually prefers the compact inner lid cookers. In volume terms, both TTKP and Hawkins have been posting strong growth over the past five years and enjoy fairly similar scale (in terms volumes) and market share. In terms of geographic mix, TTKP, owing to its presence in outer-lid pressure cooker market is a stronger player in the Southern market with over 60% market share, while Hawkins is much larger player in the Northern & Eastern markets. With increasing
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ICRA Equity Research Service

TTK Prestige Limited

disposable income levels and increasing demand from urban middle class young population, the demand for branded products is gaining preference over unbranded products. Further, the shift towards branded products has also been enabled through various promotional offers/exchange schemes resulting in significant replacement demand in an otherwise durable product with low replacement market. TTKP derives ~25% of its revenues through replacement demand (exchange schemes); 50% of which pertain to exchange towards pressure cookers. As a result, the organised players such as TTKP and Hawkins have been outperforming the industry growth by a healthy margin. TTKP with its relatively stronger presence in the Southern market has also now made considerable in30.0 25.0% roads in the Northern and Eastern market. In order 25.0 20.0% to gain presence in these markets, the company 20.0 15.0% developed and launched the inner-lid pressure 15.0 10.0% cookers in 2005-06 and now has approximately 5% 10.0 share of the market. From initial volumes of 50,000 5.0% 5.0 units a year, TTKP expects to achieve sales of 0.0% 750,000 inner lid cookers in FY11e, majority of FY06 FY07 FY08 FY09 FY10 which are sold in the Northern and Eastern markets. TTKP Volumes (in Lacs) Hawkins Volumes (in Lacs) The market for pressure cookers appears to be fairly Growth (%) - TTKP Growth (%) - Hawkins well penetrated in urban markets with over 90% penetration levels; however, the penetration levels in rural markets appear to be low at ~220 for every 1,000 households. This offers strong potential for growth in rural markets. In this regard, TTKP has put in place a strategy to tap demand in rural markets by involving NGOs and self-help groups. The company has test marketed the new distribution model in certain markets in Andhra Pradesh.
Pressure Cooker Sales Trend: TTKP vs. Hawkins
27.5 27.9
23.8

in Lac units

21.3

16.2

In India, the total number of gas connections stood at 115 million and with estimated 220 120,000 10% CAGR (%) - 8% million households, the penetration level for 100,000 8% gas connected household stands at ~50%. We 80,000 believe the target to add ~55 million new gas 6% 60,000 connections by 2015 set by OMCs is likely to be 4% 40,000 the key growth driver for pressure cooker sales 2% 20,000 in rural India. On the other hand, demand from 0% urban areas is expected to come largely from 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 upgradation to products with better features and replacement (although pressure cookers All India Gas Connections Growth (%) have very high durability). Further, considering the changing consumer mindset, increasing brand awareness and safety consciousness, continued shift to branded products is being witnessed.
140,000

15.1

Trend in Gas Connections (All India)

18.3

18.6

20.4

23.4

12%

in '000s

57,584

63,501

69,965

77,070

84,492

88,642

94,260

100,977

105,731

115,064

ICRA Equity Research Service

TTK Prestige Limited

Emerged as a total kitchen appliances company with presence across a range of products TTKP over a period of time has transformed its TTK's Sales mix across different segments 120% business model from being a pure pressure cooker 100% maker to a company offering a complete range of 10% 10% 12% 11% 10% kitchen appliances as it has been able to effectively 80% 9% 14% 13% 17% 20% 15% extend its Prestige brand to cookwares, kitchen 15% 16% 15% 60% 17% electric appliances and modular kitchens thereby 40% rebranding itself as a Total Kitchen Solutions 59% 56% 55% 53% 47% 20% company. Although, pressure cookers continue to remain the mainstay for the company with over 47% 0% contribution to turnover, the company has FY06 FY07 FY08 FY09 FY10 Others Gas Stoves successfully scaled-up its business in other segments Kitchen Electric Appliances Non-stick Cookware that include non-stick cookware, kitchen electric Pressure Cookers appliances and gas stoves. In FY10, sales from segments other than pressure cookers accounted for 53% of total turnover as compared to 41% in FY06. In the non-stick cookware segment, the company manufactures and markets entire range of cookwares under its Omega Deluxe, Omega Die-Cast and Omega Select Plus brands. In the kitchen electric appliances segment, the company markets a range of mixer grinders, hand blenders, induction cook tops, toasters, kettles, juicers, coffee makers etc. In line with the industry trend, TTKP also follows the outsourcing model for manufacturing kitchen electric appliances and gas stoves and has dedicated vendors in India and suppliers in China. At present, the company sources nearly 60% of its requirement from China and balance is met domestically. The outsourcing model offers several operational advantages to the company as it allows the company to focus on its key strengths in marketing, distribution and product development. It further ensures lower capital engagement as vendors invest their own capital for capacity creation besides providing flexibility with respect to managing production in line with trends in demand. Outsourcing to small players also provides tax incentives available to small scale industries. In line with its strong market position in the pressure cooker segment, TTKP has managed to establish a fairly strong presence (i.e. ~35% market share) in the fast-growing non-stick cookware segment where it has effectively extended its strong brand franchise to offer a complete range of products. The companys revenues from this segment have grown at a healthy CAGR of 25% over the past five years, contributing ~17% to total turnover in FY10. The company faces competition from whole host of branded players as well non-branded ones with Hawkins, Nirlep, Butterfly and Pigeon being among the other established brands available in the market. We expect this segment to continue to grow at healthy pace driven by growing health consciousness among increasing young middle class population, rising disposable income levels and advent of modern trade. With a view to transform itself as a complete kitchen solutions provider, TTKP has also marked its presence in the kitchen electric segment of small appliance markets. The small appliances or commonly referred as the brown goods market in India is estimated at ~Rs. 5,900 crore, growing at over 15% over the past five years. Rising income levels, increasing urban households and increasing growth in penetration in rural markets are some of the prominent factors driving demand for small appliances. The major differentiating factor in favour of the kitchen appliances vertical is that these products have a much shorter replacement cycle of 2-3 years, regular product / technology introductions and lower price range in comparison to higher prices consumer durable such as white goods. These factors result in higher volume growth and quicker penetration possibilities.

ICRA Equity Research Service

TTK Prestige Limited

In the initial phase, the demand for electric appliances has been driven by urban markets. But it is now reaching out to the semi-urban and rural markets benefitting from changing lifestyles, rising disposable income levels and improving electricity availability. We expect growth momentum to continue driven by:
Key Growth Drivers Small Electrical Appliances Improving electricity penetration in rural areas to support demand for electrical appliances Rising disposable income levels and housing demand among growing urban middle class population Shift from unorganised to organised segment with rising disposable income levels Relatively low penetration in rural areas for most electrical appliances

Unlike TTKPs traditional product segment pressure cookers, the market for brown goods has large number of branded players (both local and foreign brands) with no single player commanding more than 15-20% market share. TTKP ventured in to the kitchen electric appliances segment in 2002-03 and has managed built a Rs.100 crore business over the past 5 years. Bajaj Electrical is the largest player in the small appliances segment; its market share across product categories ranges between 15-30%.

ICRA Equity Research Service

TTK Prestige Limited

Segment-wise key snapshot & TTKPs market position & strengths Pressure Cookers (47%)
Trend in TTKP's Pressure Cooker Business 350 300 250 200 150 100 50 30% 18% 19%
137 163
14%

Rs. Crore

FY06

FY07

FY08

186

FY09

220

FY10 FY11e
Growth (%) - RHS

Pressure Cookers

Non-Stick Cookware (17%)

160 140 120 100 80 60 40 20 Trend in TTKP's Non-Stick Cookware Business 55% 60% 50%
135

241

313

9%

35% 30% 25% 20% 15% 10% 5% 0%

TTKs Market Position & Strengths - Leading player in the organised, branded pressure cooker market - Enjoys strong brand equity, benefits from wide distribution reach Key growth drivers - Untapped rural market; increasing gas connectivity to 55 mn households - Rising disposable income levels and urbanisation levels Challenges - Stiff competition from highly price competitive unorganised segment - Vulnerable to input material price movements

Rs. Crore

37%
87

22%
36 43

24%
54

18%

40% 30%
20% 10% 0%

FY06

FY07

FY08

FY09

FY10 FY11e Growth (%) - RHS

TTKPs Market Position & Strengths - Enjoys strong market position with ~35-40% market share - Successfully leveraged on Prestige brand to expand its presence Key growth drivers - Increasing acceptance among health conscious consumers - Relatively lower product life also results in replacement demand - Favourable demographics; rising consumerism and urbanisation levels Challenges - Stiff competition from both organised/branded & unorganised players

Non-stick Cookware

Kitchen Electric Appliances (20%)

Trend in TTKP's Kitchen Electric Appl. Business 180 160 140 120 100 80 60 40 20 79%
54%

64

55% 43%
104 161

22%
73

90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

FY06 FY07 FY08 FY09 Kitchen Electric Appliances

FY10 FY11e Growth (%) - RHS

Gas Stoves (12%)

100 90 80 70 60 50 40 30 20 10 Trend in TTKP's Gas Stoves Business 55% 53% 40% 12%
35 95

TTKPs Market Position & Strengths - Relatively new entrant & small player; market share ~8-9% - Bajaj Elec. holds strong market position across categories - Regular introductions and brand extension helping the Company - Launched induction tops, gaining traction Key growth drivers - Favourable demographics; rising consumerism and urbanisation levels - Relatively lower product life also results in replacement demand - New product introduction with advanced features Challenges - Stiff competition cheaper imports, limited scope for differentiation - Establishing wide spread service network is imperative TTKPs Market Position & Strengths - Relatively small player; other players enjoy strong brand re-call Key growth drivers - Increasing gas connectivity target 55 mn households by 2015 (50%+) - Increasing urbanisation and rising trend of nuclear families - New product introduction with advanced features Challenges - Stiff competition cheaper unorganised segment - Limited scope for differentiation

Rs. Crore

22

39

47

60% 50% 40% 30%

20% 10% 0%

Rs. Crore

13%
61

FY06 FY07 Gas Stoves

23

32

FY08

FY09 FY10 FY11e Growth (%) - RHS

40

ICRA Equity Research Service

TTK Prestige Limited

Table: TTKPs Competitive Grid Business Segment Market Size (Rs. Crore) Pressure Cookers 900

TTKPs Market Share ~20% 35% (organised) 14% 30%(organised)

Competitors Hawkins, Kanchan, United, Bajaj, Havells Hawkins, Nirlep, Pigeon, Butterfly, Jaipan

Products Outer lid, Inner lid, Pressure Handis Omega Deluxe (induction base, nonstick cookware), Omega Die-Cast (diecast cookware, durable, heat retention), Omega Select Plus (Residue free, metal spoon friendly) Mixer grinders, Hand Blenders, Rice Cookers, Induction Cook Tops, Electric Kettles, Sandwich Toasters, Ovens, Juicers, Irons, etc Gas tables, Glass top gas tables, LP Gas stoves

Non Stick Cook ware

618

Home Appliances

2,500

~4% ~5% 15% (organised)

Bajaj, Butterfly, Preethi, Philips, Kenstar, Inalsa Sun flame, Bajaj, Butterfly

Gas Stoves Source: ICRA Online Research Table: Market Characteristics Segment

1,200

Market Characteristics Growing at modest 8-9% p.a. Low entry barriers High competitive intensity as reflected by presence of large unorganised players (~50%)

TTKs Market Position & Strengths Market leader with 35-40% share Wide product portfolio Enjoys strong brand, widespread distribution reach EBITDA margins in excess of 20% TTKs market share 35% (organised) Enjoys strong brand equity; has managed to leverage the Prestige brand well TTKPs market share low Other players Philips, Bajaj, Preethi enjoy higher brand re-call Wide range of products; presence in both highend and basic categories

Pressure Cookers

Growing at relatively higher pace Low entry barriers Branded players command premium Highly competitive market Home Appliances Fragmented market No single large player Branding plays a major role Large number of players Gas Stoves No single large player Source: ICRA Online Research Non-Stick Cook ware

Focus on innovation & regular product launches has strengthened TTKPs business profile & brand equity TTKP has traditionally been a manufacturer of outer-lid pressure cookers which are predominantly used in the South India. However, with a view to expand its presence to the Northern and North-Eastern markets (where inner-lid pressure cookers are popular), the company initially entered the inner-lid segment through the launch of Nakshatra range of inner-lid pressure cookers in the regular and handi varieties. It further extended its portfolio of inner-lid pressure cookers during 2009-10 through the launch of Apple range of pressure cookers targeted at small urban families (which are currently available only in 3 litre capacities). Apart from being available in the aluminium and the superior hard anodized varieties, these models are also offered in various vibrant colours giving a contemporary look to suit modern kitchens and appeal aesthetic requirements of the new-age home makers.

ICRA Equity Research Service

TTK Prestige Limited

Table: Major product launches by TTKP

2005-06 Prestige Nakshatra (Inner lid), Pressure Handi, Pressure Kadai, Duplex gas tables 2006-07 89 new products launched in 7 categories 2007-08 45 new products launched in 5 categories; in all 86 variants 2008-09 New range of Induction cook tops 2009-10 Apple inner lid cookers, Microchef microwave cookers, Induction compatible base cookware

Similarly, on the cookware front, the company has constantly upgraded its Omega range of cookwares with innovative features such as metal spoon friendly and residue -free kitchenware while also maintaining its focus on the aesthetic appeal. However, the companys portfolio lacks products in the ultra premium category as agai nst Hawkins Futura (hard anodized and stainless steel) range of pressure cookers (4 litre pressure cookers priced at ~Rs.3,000). Though, currently the market size for the same is small, increasing incomes and changing lifestyle with growing importance to functionality and visual appeal are likely to drive demand for these products especially in the urban markets. Extensive distribution reach is imperative for consumer goods; helps differentiate between players With increasing urbanisation, Tier-II and -III towns are TTK's Sales mix across different channels 120% expected to be the key growth drivers over the next few years, which makes extensive distribution 100% 18% 20% network and brand presence critical for consumer 23% 80% 13% goods companies. TTKP has a pan India strong 14% 15% 60% network of 25,000 direct dealers as on date. Given its 39% 39% 37% product profile, its network compares fairly well with 40% its closest peers like Hawkins, Bajaj Electrical, and 20% 29% 28% Havells etc. 25%
0% FY08 Institutional Authorised Redistributors FY09 FY10 Prestige Smart Kitchens Direct Dealers

Source: Company

Company TTKP* Hawkins Bajaj Elec. Havells

Distributors Direct dealers 5,000 4,300

Direct Dealers 25,000 5,000 50,000 35,000

In terms of market position, TTKP is particularly strong in Southern and Western parts of the country and has been making in-roads in North & East as well. With deep distribution reach and strong brand awareness being the key success factors for a consumer driven industry like kitchen appliances, TTKP has taken suitable measures by foraying into the retail space early in 2003. Apart from the traditional distribution channels such as dealers, authorised redistributors and institutional sales, TTKP ventured into the company branded Prestige Smart Kitchens (PSK) outlets. Besides enhancing visibility of the brand, these exclusive retail outlets with modern ambience offer entire range of TTKPs products under one roof thereby providing convenience and unique shopping experience to the customers. These outlets have been well received by the customers as can be noticed from the increasing trend in the share of revenues being derived from PSK outlets. In line with growing popularity of these outlets, while the company has stepped up the expansion of the PSK outlets across the country, the distribution continues to be heavily skewed towards the south. The number of PSK outlets has increased from 80 in 2005-06 to the current 270 outlets covering over 135 towns in almost 20 states. With the success of PSK outlets, TTKPL has also rolled out Prestige Lifestyle and Prestige Kitchen Boutique each catering to the high value products (such as chimneys and hobs) and modular kitchens respectively. This has helped TTKPL reposition itself as a lifestyle company from a mere commodity manufacturer.

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ICRA Equity Research Service

TTK Prestige Limited

Expanding presence in the niche modular kitchen segment With a view to tap the robust growth prospects in this largely under-penetrated (less than 1% households in India have modular kitchens) segment, the company entered the modular kitchen market through specialized mod ular kitchen boutiques under its Prestige Kitchen Boutique retail outlets. Although TTKP has been present in this segment for over five years, the company renewed its focus on this division only during the past two years. At present, TTKP has nine such stores displaying three to four different varieties of modular kitchens for customers to experience and choose a suitable style of modular kitchen. The residential kitchens market in India is highly unorganized with kitchens mostly being self-designed and accordingly custom fabricated by local carpenters. With growing urbanization and shrinking kitchen space, increasing need is being witnessed for effective utilization of available space so as to make the kitchen more efficient while also maintaining its aesthetic appeal. Further, favourable demographics coupled with rise in housing projects are likely sustain the growth potential in this segment. Notwithstanding the growth prospects, the company faces significant competition in this segment from a large number of players - both domestic as well as international. Apart from domestic players such as Godrej & Boyce (through Godrej Interio), Kitchen Masters, Sleek, Akruti Kitchens & Furniture among others, several international players with strong domain expertise have entered Indian market attracted by the strong growth prospects. Some of the leading foreign brands that have entered India include: Hettich International, Hfele Kitchen Fittings and Poggenpohl Mbelwerke. While TTKP enjoys certain advantage on account of its strong brand recognition and lower pricing compared to the international players; stiff competition from the significantly cheaper unbranded market continues to remain a challenge. However, low-penetration level augurs favourable prospects for all players. Real estate foray to provide an upside in the long-run Subsequent to the closure of the pressure cooker manufacturing facility at Bangalore, TTKP has a 6.5 acre surplus parcel of land at Dooravani Nagar, Bangalore. The company has entered into a joint development agreement with Salarpurias, a Kolkata-based real estate developer to develop a residential-cum-commercial space at this location. In terms of contract with the developer, TTKP will have rights for 43% of estimated 680,000 sq. ft. of developable, 60% of which will comprise of commercial space. As per the company, the developer has recently secured all necessary government approvals and expects the construction to be spread over a period of 30-36 months. With the project expected to be a combination of housing and commercial space, the company is likely to generate sizeable one-time gain on sale of residential apartments and rental income (for commercial space) from FY15 onwards. The estimated lump sum is expected to be around Rs. 100 crore upon completion of the project in FY15 while the steady rental income would be around Rs. 6-7 crore on an annual basis. With close proximity to the outer-ring road, national highway (connecting Chennai) and an upcoming metro station (at 1 km from the site), the company expects favourable prospects for both residential as well as commercial office space at the location. In terms of execution, while some comfort may be arrived from the experience of the developer in real estate business, delays and execution risk associated with such projects could a be sensitivity to our estimates. As per the management, TTKP would however not be sharing the development cost with the developer. Expanding capacities to support future growth The company plans to double its capacity of pressure cookers from 4.8 million units to 9.6 million over the next two years. The company plans to invest around Rs.210 crore over FY11-12 in order to augment capacity. At present, the companys manufacturing facilities are operating ~70%; capacity addition and expansion plans would ensure adequate capacities for next 3-4 years. In addition to the capacity expansion plans, the company also aims at setting up a Greenfield manufacturing facility in Gujarat for manufacturing non-stick cookware including hard anodized cookers. Given the sizeable cash reserves and strong operating cash flows, we expect the company should be able to fund the capacity expansion largely through internal cash flows, thereby refraining from equity dilution or significant reliance of debt-funding. In FY07, the company had set-up a manufacturing facility at Roorkee (Uttarakhand) for
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ICRA Equity Research Service

TTK Prestige Limited

manufacturing inner-lid pressure cookers. The facility at Uttarakhand enjoys fiscal benefits (in form of excise duty and income-tax exemption). Key Concerns Large pricing differential exists between branded and unorganised players Among the branded players, owing to the nature of Local brands priced at steep discount to branded products which offers limited scope for differentiation Pressure Cookers 1,600 (in comparable price categories), value perception and 1,400 brand recognition play a significant role in customer 1,200 acquisition and retention. Therefore, despite high price 1,000 competition from the unorganized sector (substantial 800 discount to branded players), aided by strong brand 600 400 recognition and safety perception, TTKP has been able 200 to maintain its dominance in the pressure cooker industry. Going forward, we expect the company to 3 ltr. 5 ltr. 7 ltr. continue to enhance its market presence through Branded Pressure Cookers Local Brands with ISI Mark regular product launches, improving brand awareness Local Brands without ISI Mark and enhanced reach. In addition to competitive prices, local brands also offer better margins to dealers as compared to organised branded players such as TTKP or Hawkins. The branded players however have better pricing power and if required can potentially match the dealer margin. Currently, the local brands are able to achieve lean cost structure due to instance of tax evasion, lower spend on advertising and brand building and cheaper raw materials (as they used pre-used aluminium). However, with the expected introduction of GST, the gap between cost structures of branded and nonbranded players is likely to reduce and is likely accelerate the shift in consumers preference for branded products vis-a-vis non-branded ones. Given the high penetration levels for pressure cookers in the urban markets, growth in these markets is likely to be primarily driven by the replacement demand, upgradation to branded products/products with better features. However, significant growth is also expected from the Tier II/III towns and rural households considering lower penetration levels in these markets. This is especially so with the growing interest for branded pressure cookers in the semi-urban/rural markets (owing to better quality and safety perception) and increasing availability of LP gas apart from boost in the rural income driving demand. However, expanding the distribution reach with infrastructural constraints in rural areas remains a challenge. Furthermore, TTKPs products are likely to face severe competition from the significantly cheaper regional brands/unbranded products especially considering the high price elasticity in the rural markets.

Prices (In Rs.)

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Raw material prices For TTKP, raw material cost is the major cost component, forming ~52-55% of its operating income. Aluminium, stainless steel and other traded products is the major constituent of the total material cost. Thus, increase in material prices particularly of aluminium and stainless steel can exert pressure on companys operating margins. However, the impact is limited to an extent given the companys strong brand equity, which allows it to pass on the increase in material prices to end customers.
Trend in Aluminium prices (Rs./Kg)
160.0 120.0% 100.0%

Raw material cost composition

140.0
120.0

80.0% 60.0% 40.0%

20.0%

56.2% 8.3%
35.6%

56.2% 6.2%
37.6%

55.0% 6.4%

100.0 80.0
60.0

38.6% FY10 Aluminium

Apr-07

Apr-08

Apr-09

Apr-10

Oct-07

Oct-08

Oct-09

Oct-10

Jul-07

Jul-08

Jul-09

Jan-08

Jan-09

Jan-10

Jul-10

Jan-11

0.0%

FY08
Others

Aluminium Prices

FY09 Stainless Steel

Source: CMIE, Company annual report

Increasing operating Leverage, fiscal benefits & Lower outsourcing have helped improve margins
Trend in TTKP's RM/Sales & EBITDA Margins
20.0% 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0%

Trend in TTKP's Quarterly Performance

250.0 200.0 150.0

20.0%
16.0%

65.0%
60.0%

100.0 50.0 -

12.0% 8.0%
4.0%

55.0% 50.0%
45.0% 40.0%

Q3 Q1 Q3 Q1 Q3 Q1 Q3 FY08 FY09 FY09 FY10 FY10 FY11 FY11 Net Sales EBITDA EBITDA/Sales (%)

Q3 Q1 Q3 Q1 Q3 Q1 Q3 FY08 FY09 FY09 FY10 FY10 FY11 FY11 EBITDA/Sales (%) RM/Sales (%)

Source: Prowess, Company data

TTKPs operating margins have also benefitted from its improving operating leverage, lower outsourcing of traded good and fiscal incentives available at Uttarakhand plant, which has helped the company gradually shift manufacturing of kitchen electric appliances in-house and reduce dependence on outside vendors. That said, the company is likely to see some pricing erosion and subsequently pressure on margins as it expands in smaller towns and rural markets where price elasticity is likely to be higher.

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ICRA Equity Research Service

TTK Prestige Limited

FINANCIAL OUTLOOK Enhanced penetration together with new launches across product categories to sustain growth momentum
Trend in TTKP's Revenue Growth
1,600 1,400 1,200 1,000 800 600 400 200 120%

Trend in TTKP's sales mix across different segments

50%
33%

21%
1,518
24%

60% 50% 40% 30% 20% 10%

0%

100%
80%

1,257

10% 17% 15%

53%

12%

13% 22% 18%

43%

13%
24%

13% 26%
22%
36%

13%

20%
17%
47%

1,013

23%

27%
509 764

60%
40%

27%
23%
34%

20%
39%

401

20%
0%

FY09A FY10A FY11p FY12e FY13e FY14e

Revenues (Rs. Crore) Growth (%) - RHS

FY09A FY10A FY11e Pressure cookers Kitchen Electric Appliances Others

FY12e FY13e Non-stick cookware Gas stoves

FY14e

Source: ICRA Online

Over the years the companys revenues have posted steady growth primarily driven by volume expansion across product categories. During the five year period between FY07 and FY11, TTKPs revenues grew at a CAGR of ~28%. Apart from demand side drivers such as rise in disposable incomes, favourable demographics and growing health consciousness; several company-specific factors such as strong brand presence, foray into newer product categories, product enhancements and improved distribution reach have resulted in accelerated revenue growth for TTKP especially during the past three years. Besides achieving consistent growth in pressure cookers and non stick cookware, the company has been successful in establishing its presence in kitchen electric appliances segment; a product category which is expected to continue the strong growth momentum aided by rising consumerism and replacement demand. We expect the company to continue to augment its geographical presence especially in newer markets and semi-urban areas while also maintaining its focus on enhancing its product offerings which are likely to aid TTKP in sustaining the growth trend. Overall, we expect this to translate into revenue growth of ~26% CAGR between FY11 and FY14 to Rs. 1,518 crore. Operating margins to stabilise going forward; however, high base effect to moderate EPS growth
Trend in TTKP's Profitability Estimates
300 250 200 150 100 50 10% 15% 16% 11% 16% 11% 16% 11%

16%

Trend in TTKP's Earnings Estimates

160.0 140.0 120.0 100.0 80.0 60.0 40.0 20.0 FY09A FY10A FY11p FY12e FY13e FY14e
EPS DPS EPS Growth (%) DPS Growth (%)

10%

6%

18% 16% 11% 14% 12% 10% 8% 6% 4% 2% 0%

160% 140% 120% 100% 80% 60% 40% 20% 0%

FY09A FY10A FY11p FY12e FY13e FY14e

EBITDA PAT EBITDA Margin (%) PAT Margin (%)

While TTKPs operating margins have historically been in the range of 9-10%, the company witnessed significant expansion in margins during FY10. Benign raw material prices during most part of the year resulted in healthy operating margin growth to ~15%. Further, despite change in product mix with increased proportion of relatively low-margin kitchen electric appliances, the company has been able to post steep rise in operating margin aided by
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ICRA Equity Research Service

TTK Prestige Limited

improved efficiencies attributed to enhanced scale. In line with the improvement in operating margin; the companys net margin also improved to 10.3% in FY10 from the 5.6% in FY09 aided by low depreciation and reduced interest outgo. The company retired most of its debt during FY09 and FY10 resulting in reduced interest burden. During FY11, the companys margins have further improved primarily owing to larg e economies of scale apart from stable raw material prices. Though raw material prices are expected to rise going forward, we expect the companys operating margins to remain stable cushioned to a certain extent by the improvement in margins in the kitchen electric appliances segment with the commencement of in-house production under this category (which was otherwise outsourced / imported until FY10) from the current fiscal. Further, TTKP is also expected to continue to benefit from scale economics with increased volumes and the companys strong brand equity, which allows it to pass on the increase in material prices to end customers. Addition of significant capacities, both in newer product categories and traditional products with a view to cater to increased demand is likely to result in higher depreciation charge in the initial years. However, this is expected to be off-set by the lower tax charge on the Uttarakhand plant thereby maintaining the net margins at similar levels. Higher base effect coupled with aggressive capital expenditure plans likely to impact profitability indicators With current high levels of capacity utilizations, Trend in TTKP's Capex & Return Indicators the company has outlined a large capital 84% 90% 180.0 expenditure towards capacity expansion with a 80% 160.0 view to cater to increased demand. The company 140.0 plans to double its capacity of pressure cookers 70% 120.0 58% 100.0 from 4.8 million units to 9.6 million over the next 53% 50% 80.0 50% 51% two years. In the non-stick cookware segment, the 45% 50% 60.0 42% company also plans to set up a Greenfield 40% 40.0 36% manufacturing facility in Gujarat with a capacity of 20.0 30% 0.0 6 million units per annum. The said capacity FY09A FY10A FY11p FY12e FY13e FY14e expansion requiring an estimated capital expenditure of Rs.210 crores is expected to be Capex (Rs. Crore) RoCE (%) RoE (%) incurred over a period of three years. Given the sizeable cash reserves and strong operating cash flows, we expect that the company should be able to fund the requirement largely through internal cash flows, thereby refraining from equity dilution or significant reliance of debt-funding. Though some moderation in profitability indicators is likely owing higher base (on account of increased networth through accumulated earnings and partial debt-funding for the capital expenditure), the same are expected to remain sound supported by corresponding growth in operating accruals.

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ICRA Equity Research Service

TTK Prestige Limited

COMPANY PROFILE Incorporated in 1955, TTK Prestige Limited (TTKP) is the flagship company of the Bangalore-based Rs. 1,100 crore TTK Group, positioned as one of the leading kitchen appliances company in India. TTKP, commenced operations as a traditional pressure cooker manufacturer, and has since evolved into a Total Kitchen Solutions company offering wide range of products spanning pressure cookers, non-stick cookware, kitchen hoods (chimneys), hobs, gas stoves, and several other kitchen electrical appliances. While the companys traditional product segments (pressure cookers and cookware) continue to contribute to majority of TTKPs revenues, over the years, non-traditional product segments such as kitchen electrical appliances and gas stoves have displayed a strong growth momentum. Recently, TTKP has also forayed into modular kitchens, wherein the company offers kitchen designs and fittings based on customer requirements. Currently, the company is also jointly developing a residential-cum-office space in Bangalore which is expected to generate recurring revenues upon completion. The company markets and sells its products through direct dealers, authorised re-sellers (in small towns), modern retail stores and institutional clients such as CSDs. It has a wide distribution network comprising of over 25,000 direct dealers further supported by 270+ Prestige Smart Kitchen network outlets spread across 20 states. The company also has launched large format stores Prestige Kitchen Boutique and Prestige Life Style to market its modular kitchen range and high-value products respectively. The company has three manufacturing facilities located at Hosur, Coimbatore (in Tamil Nadu) and Roorkee (in Uttarakhand) and is planning to set-up a green field manufacturing facility primarily for non-stick cookware in Gujarat. The company is run by third-generation entrepreneur, Mr. T.T. Jagannathan who is presently the chairman of the company and is supported by Mr. T.T. Raghunathan (Vice Chairman) and Mr. Ravi Chandran as the Managing Director. TTK group also has presence in businesses like consumer durables, pharmaceuticals, health care, and biomedical devices. The company is listed on both BSE and NSE with promoters currently holding 75% equity. GOVERNANCE AND MANAGEMENT STRUCTURE TTKP has a 10 member Board consisting of five independent directors, of which three directors are on the audit committee of the company. The promoters own 75% stake in the company and are closely involved in the running the business supported by a professional management team. There have been no material qualifications by auditors in recent periods. The disclosure levels in TTKPs annual report are adequate and are broadly in line with those followed by the industry.

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TTK Prestige Limited

Annexure I:
Company Name Constitution Sector/Industry

Company Factsheet
TTK Prestige Limited Public Limited Company, went public in 1994 Consumer goods Kitchen appliances 1955 Plot No. 38, SIPCOT Industrial Complex Hosur, Tamil Nadu - 635 126 Hosur, Coimbatore (in Tamil Nadu), Roorkee (in Uttarakhand) Promoters 74.91% Foreign Institutional Investors 6.27% Domestic Institutional Investors 5.05% Others 13.77% M/s. S. Viswanathan Canara Bank and Bank of Baroda Mr. T.T. Jagannathan Executive Chairman Mr. T.T. Raghunathan Vice Chairman Mr. S. Ravi Chandran Managing Director Mr. K. Shankaran Director & Whole-time Sectretary Dr. (Mrs.) Latha Jagannathan Non Executive Director Mr. Ajay I. Thakore Independent Director Mr. R. Srinivasan Independent Director Dr. (Mrs.) Vandana Walvekar Independent Director Mr. D.K. Krishnaswamy Independent Director Mr. Arun K. Thiagarajan Independent Director Prestige Housewares (India) Limited TTK Healthcare

Year of Incorporation Registered Office Plant Location Shareholding Pattern (as on March 2011)

Auditors Bankers Board of Directors

Subsidiaries Associates

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TTK Prestige Limited

Annexure II: P&L Estimates

Rs. Crore Net sales Other related income Total net revenue EBITDA Depreciation EBIT Interest expenses Other income PBT PAT Minority interest PAT (concern share) No of shares (in Crore) DPS EPS CEPS FY09A 398.3 3.0 401.3 39.3 3.5 35.8 7.3 0.5 29.0 22.4 22.4 1.13 5.8 19.8 22.8 FY10A 505.2 3.4 508.6 78.1 3.6 74.5 3.5 0.4 71.4 52.4 52.4 1.13 11.7 46.3 49.5 FY11A 763.6 763.6 121.7 4.3 117.4 0.8 4.3 120.9 83.8 83.8 1.13 14.6 74.0 77.7 FY12e 1,006.2 6.7 1,012.9 161.1 6.4 154.7 8.0 3.7 150.4 106.7 106.7 1.13 17.5 94.2 99.9 FY13e 1,248.3 8.3 1,256.6 202.2 7.3 194.9 8.8 3.9 189.9 133.2 133.2 1.13 17.5 117.7 124.1 FY14e 1,508.0 10.0 1,518.0 245.8 8.1 237.7 5.4 7.0 239.3 167.3 167.3 1.13 23.3 147.8 155.0

Annexure III: Balance Sheet Estimates

Assets (Rs. Crore) Net fixed assets Capital Work in Progress Total net fixed assets Total Long-Term Investments Cash and Bank Balances Receivables Inventories Loans & Advances Other Current Assets Total Assets Liabilities (Rs. Crore) Net worth Minority interest Total Debt Deferred Tax Liability Trade Creditors Other Current Liabilities and Prov. Total liabilities FY09A 33.7 23.7 57.4 0.4 10.9 48.9 50.3 6.1 15.2 189.2 FY09A 82.5 20.7 3.1 31.1 31.6 189.2 FY10A 38.3 23.5 61.9 0.4 44.0 60.3 61.3 4.4 38.2 270.3 FY10A 122.0 2.8 3.1 49.3 43.3 270.3 FY11A 91.4 91.4 22.6 53.5 74.7 105.0 20.8 57.4 425.5 FY11p 191.5 2.2 3.3 76.9 80.1 425.5 FY12e 232.8 20.0 252.8 22.6 31.8 119.1 145.1 27.6 76.1 675.2 FY12e 278.4 92.2 3.3 102.4 106.3 675.2 FY13e 266.2 21.0 287.2 22.6 60.6 147.7 178.3 34.3 94.4 825.1 FY13e 391.8 62.2 3.3 125.8 131.8 825.1 FY14e 274.1 23.0 297.1 25.0 143.2 178.4 216.9 41.4 114.1 1,016.1 FY14e 532.7 32.2 3.3 153.1 159.3 1,016.1

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ICRA Equity Research Service

TTK Prestige Limited

Annexure IV: Cash Flow Estimates

Cash flows (Rs. Crore) PBT Taxes paid Depreciation Change in net working capital Cash flow from operating activities Investments Capital expenditures Cash flow from investing activities Equity Raised / (Buyback) Loans Raised / (Repaid) Others (Including Extra-ordinaries) Dividend Cash Flow from Financing activities Cumulative cash flow Opening Cash Balance Closing Cash Balance FY09A 29.0 6.6 3.5 11.7 37.6 0.0 (6.4) (6.4) 0.0 (3.2) 0.0 (4.6) (7.8) 23.3 10.6 10.9 FY10A 75.4 23.0 3.6 9.3 65.3 0.0 (8.0) (8.0) 0.0 (17.9) 4.0 (6.6) (20.5) 36.7 10.9 44.0 FY11A 120.4 36.6 4.3 (11.0) 77.0 (22.2) (33.8) (56.0) 0.0 (0.6) (0.6) (13.2) (14.3) 6.6 44.0 53.5 FY12e 150.4 43.7 6.4 (40.5) 72.6 0.0 (167.8) (167.8) 0.0 90.0 0.0 (16.5) 73.5 (21.7) 53.5 31.8 FY13e 189.9 56.7 7.3 (20.2) 120.3 0.0 (41.7) (41.7) 0.0 (30.0) 0.0 (19.8) (49.8) 28.8 31.8 60.6 FY14e 239.3 72.0 8.1 (22.6) 152.8 (2.4) (18.0) (20.5) 0.0 (30.0) 0.0 (19.8) (49.8) 82.6 60.6 143.2

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TTK Prestige Limited

Annexure V: Key Financial Ratios

Key Financial Ratios Growth indicators Sales Growth EBITDA Growth EPS Growth Cash EPS Growth Profitability indicators EBITDA Margin EBIT Margin PAT Margin RoE ROCE Liquidity ratios Debtor (days) Inventory (days) Net working Capital/Sales Capitalization Ratios Total Debt/ Equity Interest coverage Total Debt/EBITDA Valuation Ratios Price/Sales Price/Earnings Price/Book Value EV/EBITDA 6.65 119.22 32.34 68.20 5.25 50.88 21.87 33.66 3.49 31.86 13.93 21.51 2.63 25.01 9.59 16.94 2.12 20.03 6.81 13.20 1.76 15.95 5.01 10.40 0.3 5.4 0.5 0.0 22.5 0.0 0.0 160.1 0.0 0.3 20.2 0.6 0.2 22.9 0.3 0.1 45.5 0.1 43 70 11.0% 43 71 6.9% 35 82 6.0% 43 85 8.5% 43 85 8.5% 43 85 8.5% 9.8% 8.9% 5.6% 30.0% 41.7% 15.3% 14.6% 10.3% 51.3% 84.3% 15.9% 15.4% 11.0% 53.4% 80.4% 15.9% 15.3% 10.5% 45.4% 57.5% 16.1% 15.5% 10.6% 39.8% 50.3% 16.2% 15.7% 11.0% 36.2% 49.9% 23.4% 19.6% 41.7% 12.7% 26.9% 98.8% 134.3% 116.7% 51.1% 55.9% 59.7% 57.1% 31.8% 32.4% 27.4% 28.5% 24.1% 25.5% 24.8% 24.3% 20.8% 21.6% 25.6% 24.8% FY09A FY10A FY11A FY12e FY13e FY14e

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ICRA Equity Research Service

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