Hawkins Cookers : Is growth coming back?


(Raj Panda) #181

They were already spending 71 & 79 cr. in last 2 years under advertising & selling expense . If this 100 cr. per year expense is under same head (which most likely it is) then it’s not that big a change. But I think this spending may help them to move a notch up in brand image and may be price their products upwards.

**[ Prestige marketing Link: http://www.moneycontrol.com/news/business/prestige-to-spend-rs-300-crmarketing_964379.html

**](http://www.moneycontrol.com/news/business/prestige-to-spend-rs-300-crmarketing_964379.html)


(Deepak Swamy) #182

And even worse is the mid line…

Total Income up 3% to 345.54 Cr from 335.55 Cr.
EBIDTA DOWN 12.8% to 44.39 Cr from 50.9 Cr.
Net Profit FLAT at 30.3 Cr v/s 30.28 Cr.

EBIDTA margin is 12.9% v/s 13.5% (jQ-13) and 15.2% (sQ-12)
NET Profit margin is 8.8% v/s 8.4% (jQ-13) and 9% (sQ-12)

Total Raw material costs as a %ge to Income is 59.2% v/s 58.3% (jQ-13) and 56.5% (sQ-12)
Employee costs to Income is 6.6% v/s 7.2% (jQ-13) and 6.3% (sQ-12)
Other expenses to Income is 21.3% v/s 21% (jQ-13) and 22.1% (sQ-12)

Financial costs to EBIT is 5.4% v/s 7.9% (jQ-13) and 9.1% (sQ-12)
Tax Rate 25.9% v/s 31.5% (jQ-13) and 32.6% (sQ-12)

Raw material and Employee costs affected EBIDTA.
Increase in other income, Reduction in financial costs and lesser tax saved net profits.

Hy-Sep’13 v/s Hy-Sep’12:
Total Income up 2.2% to 651.87 Cr from 638.08 Cr.
EBIDTA DOWN 12.7% to 85.76 Cr from 98.21 Cr.
Net Profit DOWN 8% to 56.09 Cr from 60.96 Cr.

Six-month EPS 48.18 v/s 53.85
Recorded TTM (sum of 4 quartr) diluted EPS: Rs. 112.37

y-o-yer 30, 2013…


(Rudra Chowdhury) #183

Saw a Hawkins ad in a bengali entertainment channel after many years. Good traction seen in local sales (channel feedback in North Bangalore - both kirana shops as well as multi brand retail), however induction cookwares not yet available in southern region. This quarter we can see a marginal topline growth, but coupled with ad spends and promotions for festive season, bottom line growth may remain muted.


(Nikhil Rodrigues) #184

I do not have much hopes for Q2 sales numbers. Last year Q2 numbers were good due to early festive season. Would like to see FY14 sales together more than quarterly numbers. I admit this stock is really testing nerves of investors.

Disclosure - I hold Hawkins in my 5 stock folio


(Bhupesh) #185

What happened to new product launches around festive season, I do not see any on their site?


(samir s) #186

If u see first post of this thread written 15 months ago, it says same "this stock really testing mypatience. "

investors.


(Rudra Chowdhury) #187

âThe important thing is to keep playing, to play against weak opponents and to play for big stakes.â


(Nikhil Rodrigues) #188

So true Samir. Due to one problem or other, Hawkins has not delivered for past 3+ years. It’s FY13 EPS was less than FY10 and even sales growth was very average.

It’s become sort of “hope stock”. And I personally am not ready to be bullish unless it delivers consistently for 3-4 quarters.

Only saving grace for Hawkins investors in last 2-3 years is 1) They did not loose much money + earned bit of dividends 2) In general market didnt go anywhere so not much of opportunity cost.


(Ashwini Damani) #189

New range is out, Contura. They have upped their ad spend too


(zulfiqar) #190

sir from where did u get this information?


(Vaibhav Patni) #191

Hawkins products are now available on Homeshop18 and they are offering 10% diwali discount. Dont know what to make out of it butseeing a lot of hawkins products in stores lately, be it neighbourhood stores,mallsor CSD. At the same time, competition is heating up looking at the TV commercials by so many new companies. Lets see how this year pans out but i believe this is a company for the long run.


#192

butseeing stores,mallsor

I dont expect anything special by way of results today. Their channels of distribution are just 3 months old ( the new channels). GDP growth has been low and TTK results have not shown promise.

HIghest holding in Hawkins since long time and now learnt not to be excited when it comes to this scrip.


(samir s) #193

http://www.bseindia.com/xml-data/corpfiling/AttachLive/Hawkins_Cookers_Ltd_291013_Rst.pdf


(Ashwini Damani) #194

Super Results by the company.


(Raj) #195

When you do not expect, Hawkins delivers… :slight_smile:


(Rohit Kotewale) #196

After following Hawkins for last 2 odd years, what I have learnt is that don’t research it too much. Don’t keep any expectations and don’t try predict its results.

You can ride Hawkins only if you have trust in the management.(And attending the AGM is very very important atleast in case of Hawkins).

Now everyone will start coming up with their own set of projections with EPS ranging from 100-120 and more super bullish estimates.

Time to buy it was when everyone was bearish about it. (Thankfully I had added when price dropped to 1650 recently after seeing the huge inventory in D-Mart being sold in 2 odd months and the inventory being renewed. That was an indicator for me that things are falling in place. But I’m happy I didn’t try to predict the results this time around.)

P.S: Hawkins forms 30% of my portfolio.


(Krishna kumar) #197

Awesome Results!!!

The operating leverage with increased sales is visible. All the company has to do is increase the sales by 25% YOY and maintain the dividend payout.


(Rohit Kotewale) #198

True. The beauty of the results is that the incremental margin is around 25% !!!


(Rudra Chowdhury) #199

Q2FY14 EPS of 25.99(A) vs 24.82§

Q2FY14 Sales EPS of 128.46(A) vs 131.02 §

For once, it’s good to be pretty close :slight_smile:

http://prdntinvestor.blogspot.in/2013/07/stock-update-hawkins-cookers-revisiting.html


(Vipul Patel) #200

Hawkins shareholders always find some reasons in “every” results to cheer for.

What’s to cheer for here? Let’s see Hawkins reduced existing inventory of 8.83 crores and increased margins. That’s huge on small revenue of 128 Crores.

Fact is sales growth is mere 13% and Hawkins is finding it hard to increase it’s bottomline since last 3 years. It’s too much for company trading at very high valuations.

Not to forget opportunity cost involved in all these years.