homebusiness NewsIndia's largest kitchenware maker plans to export more as local demand is still sluggish
India's largest kitchenware maker plans to export more as local demand is still sluggish
India's largest kitchenware maker, TTK Prestige was witnessing mild slowdown in consumer demand. TT Jagannathan, Chairman, TTK Prestige noted that export demand is getting stronger and is set to contribute significantly to the company's revenue in the upcoming fiscal year.
India's largest kitchenware maker, TTK Prestige were witnessing a mild slowdown in consumer demand. In an interaction with CNBC-TV18 on February 24, TT Jagannathan, Chairman of the company admitted that the domestic market, particularly rural, has slowed down. In response, the company is looking to shift some of its volumes to exports where demand is stronger.
Jagannathan noted that export demand is getting stronger and is set to contribute significantly to the company's revenue in the upcoming fiscal year.
He revealed that export currently accounts for 5 percent of the company's revenue, but this is set to double in FY24, where it will contribute 10 percent.
“Additional growth will come only from export and expert growth will double next year,” he said.
Moreover, Jagannathan stated that the export margin is between 10-15 percent which is quite impressive. However, he noted that the domestic business margin is even better, ranging between 15-18 percent.
“It depends on customer-to-customer, export margins are between 10-15 percent and domestic margins will be between 15-18 percent,” he said.
Nevertheless, with the projected increase in export demand, the company's overall revenue is expected to see double-digit growth for FY24.
Overall, the demand situation for TTK Prestige is better than the last two quarters, with export growth set to play a significant role in the company's revenue growth.
Jagannathan predicts that the EBITDA margin will be in the range of 15-17 percent indicating healthy profitability for the company.
The Chairman also provided insights into the company's production capacity, assuring that they have enough product capacity to last them 5 years in the domestic market.
Moreover, the FY24 capex is estimated to be around Rs 75-80 crore, which indicates the company's commitment to continued growth and expansion.
(Edited by : Abhishek Jha)
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
2024 Lok Sabha Elections | Will Amethi and Rae Bareli see the rise of Priyanka Gandhi as a dominant political figure
May 18, 2024 8:59 AM
Lok Sabha Election 2024: I.N.D.I.A. bloc to hold rally at Mumbai's BKC today
May 17, 2024 5:18 PM
In Ayodhya, voters talk of a promise fulfilled and yearning for development
May 17, 2024 2:10 PM
Fight of heavyweights in Sambalpur where farmers, weavers hold the key
May 17, 2024 12:25 PM