TALWALKARS BETTER LIFE
Talwalkar’s Better Life yesterday hit a new 52-week high at Rs.182 and this was on unconfirmed news that one of UK’s large health and fitness group, the David Lloyd is looking at acquiring a 20% stake in Talwalkars. The equity deal is expected to help both the companies expand their networks of providing consultancy services. This is not a new association for Talwalkars with David Lloyd as in 2012, it had formed a partnership to provide consulting for leisure and sports clubs in high end apartments, corporate campuses and various gated communities. And this partnership is now being logically extended to an equity association too. This is good news for the company as it will give an added edge over existing competitors like Fitness First and Gold Gym.
On the financial front, the company is doing well. For Q3FY14, the company posted a 28% (YoY) rise in revenue at Rs.37 crore. Growth in EBITDA was its best at 44%, coming in at Rs.15 crore. It had ended the quarter with a net profit of Rs.3.5 crore, up 20%. For 9MFY14, net profit stood at Rs.22 crore, up 21% (YoY). It is sure to better the performance of FY13 as it had ended the previous fiscal with a net profit of Rs.28 crore. With one more quarter to go, surely the company will end FY14 on a much healthy note. Currently, the Talwalkar family owns 54.78% stake in the company. As at 31st Dec 2014, it had 149 branches across 78 cities. The company expects Q4 to be better given the fact that seasonally, January is always very good, with many new enrolments, as people tend to follow New Year resolutions and usually, health figures pretty high on this list.