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Shares of TTK Prestige have turned volatile after reporting a 62.7% year-on-year decline in net profit at Rs 9.76 crore for the quarter ended March 2015 (Q4) due to poor sales.
The stock had dipped 9% to Rs 3,571 post the announcement of Q4 results and subsequently, in noon trades, erased its entire losses to touch a high of Rs 4,080 on the BSE.
At 1420 hours, the stock was down 3.4% at Rs 3,798, with a combined 252,340 shares changing hands on the counter on the BSE and NSE.
The company, engaged in the houseware business, had posted a profit of Rs 26.21 crore in the same quarter last year.
During the quarter, the company’s net sales grew single-digits by 4.8% at Rs 286 crore, while total expenditure increased by 10% to Rs 272 crore over the previous year's corresponding quarter. EBIDTA margins eroded 400 basis points to 6.4% from 10.4%.
The non-seasonal rainfall in several states added to the lukewarm consumer sentiment in non-urban areas, TTK Prestige said in a statement.
A few one-off items had an impact on the Q4 EBIDTA margins and not indicative of future, the company added.
Going forward, the company expects margin improvement by driving internal efficiencies. The company has initiated a dialogue with major e-tail channels to use their platform without disturbing other channels.
The stock had dipped 9% to Rs 3,571 post the announcement of Q4 results and subsequently, in noon trades, erased its entire losses to touch a high of Rs 4,080 on the BSE.
At 1420 hours, the stock was down 3.4% at Rs 3,798, with a combined 252,340 shares changing hands on the counter on the BSE and NSE.
The company, engaged in the houseware business, had posted a profit of Rs 26.21 crore in the same quarter last year.
During the quarter, the company’s net sales grew single-digits by 4.8% at Rs 286 crore, while total expenditure increased by 10% to Rs 272 crore over the previous year's corresponding quarter. EBIDTA margins eroded 400 basis points to 6.4% from 10.4%.
The non-seasonal rainfall in several states added to the lukewarm consumer sentiment in non-urban areas, TTK Prestige said in a statement.
A few one-off items had an impact on the Q4 EBIDTA margins and not indicative of future, the company added.
Going forward, the company expects margin improvement by driving internal efficiencies. The company has initiated a dialogue with major e-tail channels to use their platform without disturbing other channels.
