TTK Prestige profit up 28%

TTK Prestige has reported close to 28 per cent jump in net profit to Rs 44.10 crore for the third quarter of FY13 as compared to Rs 34.57 crore during the corresponding previous quarter. The sales grew almost 31 per cent to Rs 445 crore. Operating profit grew by 16.6 per cent to Rs 63 crore, while the operating margins dipped to 14.18 per cent from 15.9 per cent due to product mix and seasonal promotions.

According to the company, though general consumer sentiment continued to be affected by hike in fuel prices, inflation in prices of articles of daily consumption and vagaries of monsoon, the festive season in October and November enabled higher sales. “The key markets in South, especially Tamil Nadu and Kerala continued to be affected and the demand recession was significant owing to power shortage and failed monsoon. Agriculture as well as small and medium industries suffered heavily affecting the spending power,” the company’s management detailed.

 

TTK Prestige during the quarter continued its de-risking strategy which ensured that it grew substantially in non-South markets and exports to compensate the decline in Souther markets and register a growth of 30 per cent for the company as a whole.

“Owing to well directed product and marketing strategies, we established substantial growth in the appliance and pressure cooker segments, while the cookware segment growth was nominal due to higher base effect,” the officials explained.

Going forward, TTK Prestige has said that the guidance for topline growth will be closer to the 25 per cent range for the entire year.

“We will continue its aggressive spends on gaining market share which can have impact on EBITA level margins. We are focussed on long-term strength and growth rather than maintaining margins for the short-term,” TTK Prestige added.