Stove Kraft Reports Strong Q1 Results, Anticipates Margin Growth
Stove Kraft Limited, a kitchen and home appliances manufacturer, reported robust Q1 financial results. Revenue increased by 8.2% to ₹340.10 crore, gross profit rose 8.5% to ₹130.40 crore, and net profit surged 27.2% to ₹10.40 crore. The company saw growth across various product categories, with induction cooktops and small appliances showing significant value growth. Stove Kraft expanded its retail presence, adding 19 new stores, and experienced 14% growth in exports. The company expects further margin expansion in coming quarters and is pursuing growth through new initiatives, including in-house chimney manufacturing and development of outdoor cooking products.
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Stove Kraft Limited , a leading manufacturer of kitchen and home appliances, has reported robust financial results for the first quarter. The company's performance shows significant growth across key financial metrics, with management expressing optimism about future margin expansion.
Financial Highlights
Stove Kraft's Q1 results demonstrate solid growth:
- Revenue from operations increased by 8.2% year-over-year to ₹340.10 crore, up from ₹314.50 crore in the same quarter last year.
- Gross profit rose by 8.5% to ₹130.40 crore, maintaining a stable gross margin of 38.3%.
- EBITDA grew by 12.5% to ₹35.60 crore, with the EBITDA margin improving to 10.5% from 10.1% in the same quarter last year.
- Net profit surged by 27.2% to ₹10.40 crore, compared to ₹8.20 crore in the previous year's quarter.
Operational Performance
The company's growth was driven by strong performance across various product categories:
| Product Category | Value Growth | Volume Growth |
|---|---|---|
| Induction cooktops | 18.4% | 10.1% |
| Small appliances | 18.2% | -4.4% |
| Non-stick cookware | 10.7% | -21.3% |
| Pressure cookers | 2.2% | 4.0% |
Retail Expansion
Stove Kraft continues to strengthen its retail presence:
- The company added 19 new stores in Q1, bringing the total to 281 stores across 19 states and 110 cities in India.
- Average sales per store stood at ₹3.60 lakh per month.
- The retail channel saw 216,783 units sold and 114,087 new customers added, with an 18% repeat purchase rate.
Export Growth and Channel Diversification
Exports showed strong performance, growing by 14% year-over-year and now contributing 20% to total revenues. This growth comes despite recent geopolitical and trade disruptions, highlighting the company's resilience in international markets.
Margin Growth Expectations
Rajendra Gandhi, Managing Director of Stove Kraft, expressed optimism about future performance, stating, "The Company expects further margin expansion in the coming quarters as operational leverage gains momentum." This anticipation is supported by the company's focus on operational efficiency and cost management.
New Initiatives and Product Development
Stove Kraft is actively pursuing growth through various initiatives:
- Commenced in-house manufacturing of chimneys, targeting a high-potential, underpenetrated segment.
- Increased production of new backward-integrated kettles and cast-iron cookware, supporting margin gains.
- Development of outdoor cooking products and bakeware to cater to export demand.
- Launched the "Balancing Gender Roles at Home" campaign under the Pigeon Appliances brand, which has received strong consumer response.
Conclusion
Stove Kraft's Q1 results demonstrate the company's ability to drive growth across various product categories and channels. With a focus on retail expansion, export growth, and new product development, coupled with anticipated margin improvements, the company appears well-positioned for continued success in the coming quarters.
Historical Stock Returns for Stove Kraft
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.25% | -2.63% | +1.00% | -10.05% | -28.42% | +50.47% |
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