 "TTK Prestige Q3FY25 results: Net profit falls 6.4% to Rs 58.45 crore")
India's TTK Prestige, whose kitchen appliances range from pressure cookers to electric chimneys, reported a 6.4 per cent decline in third-quarter profit on Tuesday as consumers reined in spending due to persistently high inflation.
The company's shares dropped 5.5 per cent in afternoon trading.
TTK's consolidated net profit fell to Rs 58.45 crore ($6.8 million) in the quarter ended Dec. 31, from Rs 62.4 crore a year earlier.
Revenue decreased 1.5 per cent to Rs 727 crore, while total expenses were largely flat.
Key context
Premium household appliances and kitchenware makers have been grappling with a slowdown in discretionary spending in urban areas as persistently high food prices pressure household budgets. ALSO READ: JSW Infra Q3FY25 results: Net profit climbs 32% to Rs 335.62 crore
In the rural segment, demand has slackened as microfinance lenders have been extending fewer loans due to asset quality deterioration.
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After the festive sales in October, which included the festival of Deepavali, demand was sluggish in the rest of the quarter, TTK said.
Besides that, higher prices of key raw aluminium have also been weighing on kitchenware makers' margins.