 "TTK Prestige buys UK's Horwood as it expands global business")
TTK Prestige has dipped 10% to Rs 5,850 on the National Stock Exchange (NSE) in intra-day trade after the company reported single digit 3.9% year on year growth in standalone net profit at Rs 35.39 crore for the quarter ended September 30, 2016 (Q2FY17). The company engaged in kitchen appliances business had profit of Rs 34.04 crore in year ago quarter.
Net sales of the company during the quarter under review increased by 12.9% to Rs 463 crore against Rs 410 crore in the corresponding quarter of previous fiscal.
Net sales of the company during the quarter under review increased by 12.9% to Rs 463 crore against Rs 410 crore in the corresponding quarter of previous fiscal.
EBITDA (earnings before interest, taxes, depreciation, and amortization) margin stood at 12.01% against 12.73% in previous year quarter.
“EBIDTA margin stable inspite of input material cost increase (as compared to previous year) and composition of sales with higher appliance content. Also company has been making soft invetments in new category and market expansion,” TTK Prestige said in a release.
Going forward, good South-West monsoon and infrastructure investment is likely to improve consumer sentiment.
The month of October 2016 witnessed significant growth propped up by festive demand. The favourable commodity prices and internal efficiencies can yield better margin.
The company said focus will be on growth and improving market share which can have some transient impact on margin% but will benefit the company in the long-run.
The stock has seen a strong run-up in past two-months, appreciated 34% as compared to 3.5% decline in the Nifty50 index till Wednesday.
