TTK Prestige eyes double-digit growth in second half of FY24
Chairman TT Jagannathan said the company is actively scouting for an acquisition and plans to fund it largely through internal accruals.
Bengaluru-based TTK Prestige expects double digit revenue growth in the second half of the current financial year, Chairman, TT Jagannathan told CNBC-TV18. He expects margins at around 14-16%.
Jagannathan said the kitchen appliances major is actively exploring acquisition opportunities, with ticket size ranging between ₹500 crore and ₹1,000 crore and companies with revenues of at least ₹1,000 crore. TTK has cash on books of around ₹1,000 crore to meet most of the funding requirement, he said.
He highlighted that TTK Prestige is currently operating at nearly 80% of its production capacity and is actively investing in automation to enhance operational efficiency.
Jagannathan said TTK is in the process of launching premium brands, a strategic move to cater to diverse consumer segments and further strengthen its market presence.
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The company projects exports growing five times the first half numbers to hit ₹100 crore during the fiscal year 2024.
TTK second quarter performance was muted with over 15% decline in sales to ₹683.7 crore and an over 27% decrease in net profit to ₹62.2 crore.
The company said its gross margin was lower than the immediate last quarter due to unfavourable product mix, higher sales promotions, and liquidation of high-cost inventory.
It added that due to sluggish demand, excessive discounting continued during the September quarter at certain product levels.
Shares of TTK have lost more than 3% over the past month versus Nifty 50 gains of nearly 9%. The company's market capitalisation was at ₹10,520 crore.
For the entire interview, watch the accompanying video
(Edited by : Shweta Mungre)
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