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TTK Prestige has reported a 33.12 per cent year-on-year fall in profit for the December quarter at Rs 29.49 crore amid lower sales.
Total sales from operations dropped 14.97 per cent to Rs 378.17 crore during the quarter compared with Rs 444.76 crore a year ago. Earnings per share stood at Rs 25.33 against Rs 38.88 last year.
T. T. Jagannathan, Chairman, TTK Group, attributed the drop in profit to lower sales of induction cook-tops and bundled products. “It declined 55 per cent from Rs 148 crore to Rs 66 crore due to change in Government policy, while domestic categories grew 7.1 per cent from Rs 278 crore to Rs 298 crore.”
In October-December, value-added items saw reasonable traction compared with mass products. The EBITDA margin was impacted on account of the drop in revenue resulting in under absorption of incremental overheads. The impact of rupee depreciation was passed on to the market.
“Going forward, consumer sentiment continues to be depressed and efforts are being made to get moderate growth in the fourth quarter but the outcome is till unpredictable,” Jagannathan said. “The company has reported poor Q3 results, 30 per cent below estimates, revenues for the quarter declined by 15.5 per cent year on year (YoY) as opposed to our expectation of a flat quarter.
“The EBITDA margin contracted by 181 basis points YoY (estimate was 50 bps contraction) primarily due to increased promotional activities and higher discounts,” said Nitesh Sharma, analyst at Espirito Santo Securities.
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