On Ujjwala Scheme: It is a benefit for the company as the Government has increased roll out target of Ujjawala scheme to 80 million households from 50 million households earlier. Rural growth has been very positive and in the last year the company has grown at 115%. Pressure cooker penetration in the rural market is very low as opposed to urban market, which is very high. Thus, TTK Prestige is seeing substantial growth in rural market, but only 45 percent of the rural markets are buying and that will improve considerably as indicated by the Chairman.

On Kerala Floods and impact on business: As per the Chairman, demand in Kerala is expected to be very good going forward. There is no retail going on at all, but people will have to replace the cookware and pressure cookers. So we believe the future will be good on top of a very big disaster, which I feel very sorry for.

On Revenue growth strategies: Besides, the core categories the company has identified new revenue streams like Cleaning Solutions and Exports. Additionally, Rural too is expected to contribute significantly to the overall business. Currently, rural contribution to the overall business is less than 5%, but with the kind of growth TTK Prestige is experiencing, it should reach about 20% over the next three years in the opinion of Chairman, Mr. TT Jagannathan.

On Exports and Cleaning Solutions business: Exports in FY2019 are expected to grow 100%, but contribution to overall top line will be ~6%. Regards, cleaning solutions, segment witnessing very strong growth and are seeing small market but as a company we are hopeful that by end of FY2019 it will form ~4% of top line.

On Inorganic Opportunities: Have allocated Rs. 500 – 600cr for the inorganic opportunities which we are currently in talks for. The acquisition if any will however happen only after FY2019.

On Horwood Acquisition: Since being acquired in 2016 the company faced issued related to Brexit. However, thus far in FY2019 the situation has improved and in FY2018 the top line growth from Horwood has been 2%.

On Capacity Utilization: In Pressure Cookers it is 95% utilization levels and by December 2018 TTK Prestige should have additional capacities come on ground. For Cookware the utilization is ~90% and even in this segment we are adding capacities are we are seeing good growth in exports.

On Raw Material Costs: Aluminium and Steel prices have started softening from this month onwards; however in June 2018 the RM prices were at a peak. Currently Aluminium prices are 6-7% higher YoY. We are looking to take price hikes in the current quarter and don’t expect the RM prices of aluminium and steel to increase further.

On EBITDA Margins: Despite RM price increases, we expect to maintain our EBITDA Margin of 13% as we have taken price hikes in the current quarter.