Consolidated net profit surged 50.2% to Rs 80.34 crore on a 3.9% rise in net sales to Rs 606.30 crore in Q2 September 2019 over Q2 September 2018.
Houseware products manufacturer, TTK Prestige announced its Q2 2019 earning after market hours on Friday.
Standalone net profit rose 49.3% to Rs 80.28 crore on a 3.9% rise in net sales to Rs 573.59 in quarter ending September 2019 over Septmber 2018.
Rural demand continued to be under stress. Slowdown in rural demand impacted the key thrust area of the company. Heavy discounting in large format stores and sluggish exports remained an issue for entry level products. Export sales were down by 31% to Rs 10.59 crore in Q2 September 2019 from Rs 15.30 crore in Q2 September 2018.
The standalone EBITDA grew by 6.04% to Rs 92.69 crore in Q2 2019 from Rs.87.41 crore in Q2 2018. EBITDA margin stood at 16.16% in Q2 September 2019.
The company said that bountiful monsoon across the country raises hopes for a better second half. Along with this, improvement in consumer demand can be witnessed in September 2019 and October 2019 aided by festive season. More number of new SKUs (stock keeping units) will be launched in the ensuing quarters.
In a separate announcement, the company announced the expansion of its two manufacturing facilities. The company completed its expansion of facilities at Kinathukadavu, Coimbatore and Karjan, Gujarat. The facilities primarily manufacture stainless steel pressure cookers and kitchenware products.
Shares of TTK Prestige rose 2.07% at Rs 6210. Meanwhile, the S&P BSE Sensex was down 0.12% at 40,274.33.
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