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TTK Healthcare dips as Q1 profit halves

Q1 EBITDA margin contracted by 370bp yoy to 2.9% primarily due to increase in employee cost and other expenses.

SI Reporter  |  Mumbai 

TTK Healthcare is trading lower by 4% at Rs 548 after reporting 58% year-on-year decline in its net profit at Rs 2 crore for the quarter ended June 30, 2013 (Q1) due to higher marketing and staff cost. The pharmaceutical company had profit of Rs 4.86 crore in year ago quarter.

The company’s net sales remained flat at Rs 109 crore for the quarter against Rs 108 crore during the corresponding quarter of previous fiscal.

The EBITDA margin for the quarter contracted by 370bp yoy to 2.9% primarily due to increase in employee cost and other expenses by 22.2% and 26.7% respectively as compared to 1QFY2013.

Analyst at Angel Broking says that contraction in consumer product division is due to restructuring of condom business.

However, analyst believes this restructuring process will reap benefits from next year and expect the EBITDA margin to expand on account of increasing contribution from high margin business like food business, thus resulting in better profit.

The stock opened at Rs 556 and hit a low of Rs 542 on NSE. A combined 19,443 shares have changed hands on the counter till 1008 hours on NSE and BSE.

First Published: Fri, July 26 2013. 10:07 IST
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