Shares of TTK Prestige Ltd tumbled 6% in trade on Friday after the kitchen appliances manufacturer reported a weak set of numbers for the quarter ended September 2023 (Q2FY24). TTK Prestige's total sales fell 15.4% to ₹683.7 crore during the second quarter against ₹807.9 crore in the same quarter a year ago. Domestic sales fell to ₹665.4 crore as against ₹790.6 crore due to the delayed festival season compared to the previous year.
TTK Prestige net profit or profit after tax (PAT) dropped 27.4% to ₹62.2 crore in Q2 FY24 compared with ₹85.7 crores in Q2 FY23.
Operating profit, or Ebitda (earnings before interest, tax, depreciation and amortisation), was down 21.2% to ₹100.15 crore during the quarter as compared to ₹127.11 crore a year ago. Ebitda margin was at 14.6% in Q2FY24 compared with 15.7% in Q2 FY23.
#2QWithCNBCTV18 | TTK Prestige reports #Q2 earnings.▶️Net profit down29.3% at ₹59.3 cr vs ₹84 cr (YoY)▶️Revenue down13.4% at ₹729.5 cr vs ₹842.4 cr (YoY)▶️EBITDA down31.7% at ₹80.9 cr vs ₹118.4 cr (YoY)▶️Margin at 11.1% vs 14.1% (YoY) pic.twitter.com/2rc8WuGAej
— CNBC-TV18 (@CNBCTV18Live) October 27, 2023
TTK Prestige said that its gross margin was lower than the immediate last quarter as well 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.
As soon as the results were announced, the TTK Prestige stock plunged as much as 6.2% to hit an intra-day low of ₹733.20 on BSE on Friday. But the share price gradually recovered to trade flat at ₹780, down 0.2%, by 12:32 pm after investors took into account the positive outlook.
The company informed that it introduced 49 new SKUs during Q2FY24 across all categories which are “being received well in the market”. It has also slated the launch of another 49 new SKUs during Q3 of FY24.
TTK Prestige also carried substantial free cash of around ₹860 crore at the end of the September quarter post capital expenditure.
The company is also expecting better financials in the coming quarters. “With both Dussehra and Diwali festivals falling in the third quarter coupled with low base of the Q3 of last year, the growth in the Consumer Durable industry is expected to be better in the coming quarter,” it said.
(Edited by : Ajay Vaishnav)
First Published: Oct 27, 2023 1:05 PM IST
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