TTK Prestige is trading lower by 4% to Rs 3,613 after reporting almost 200 bps decline in operating margins for the third quarter ended December 2012 (Q3) due to product mix and seasonal promotions.
The company engaged in houseware business, said its EBIDTA (earnings before interest, taxes, amortization and depreciation) or operating margins declined by 173 bps at 14.18% in Q3 FY13 from 15.91% last year. The company had operating margins at 14.79% in previous quarter.
“Key markets in South, especially in Tamil Nadu and Kerala continued to be affected and the demand recession was significant owing to power shortage and failed monsoon,” TTK Prestige said in a statement.
Other expenditure which includes sales promotion and advertisement expenses has increased by 44% to Rs 102 crore from Rs 71 crore during the recently concluded quarter.
Meanwhile, the company has reported 26% year-on-year jump in net profit at Rs 44 crore in Q3 on back of 31% rise in operational income at Rs 437 crore.
The stock opened at Rs 3,804 and hit a low of Rs 3,545 on the NSE. A combined 156,793 shares have already changed hands on the counter so far against an average 100,000 shares that were traded daily in past two weeks.
