India's TTK Prestige posts lower profit as consumers tighten spending
(Reuters) - India's TTK Prestige reported a marginal drop in its fourth-quarter profit on Tuesday, as inflation-weary consumers tightened their spending on discretionary items.
The cookware maker's consolidated net profit after tax came in at 574.2 million rupees ($6.9 million) in the quarter ended March 31, from 580.1 million rupees a year earlier.
Income from operations rose nearly 2% to 6.23 billion rupees.
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KEY CONTEXT
Demand for kitchen appliances during the reported quarter remained tepid as inflationary pressures led consumers to tighten their budgets, particularly for economy-range products.
Their non-seasonal appeal further dampened quarterly sales. Meanwhile, air coolers and room air conditioners saw a spike in demand with the arrival of summer.
Separately, the TTK Prestige board has also recommended a dividend of 6 rupees apiece.
Rival homeware maker Butterfly Gandhimathi Appliances reported a loss in the March quarter versus a profit in the year-ago period.
PEER COMPARISON
Valuation (next Estimates (next Analysts' sentiment
12 months) 12 months)
RIC PE EV/EBIT Revenue profit Mean Number Stock to price Div yield (%)
DA growth growth rating* of target**
analysts
TTK Prestige Ltd 34.37 23.84 NULL NULL HOLD 4 0.83 0.85
Crompton Greaves 41.36 27.16 12.58 31.91 BUY 32 1.01 0.77
Consumer Electricals
Bajaj Electricals 42.56 25.40 12.71 62.70 BUY 9 0.91 0.43
V Guard Industries 46.19 29.92 14.14 30.12 BUY 18 0.96 0.35
* Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell* Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT
JANUARY-MARCH STOCK PERFORMANCE
-- All data from LSEG
-- $1 = 83.1531 Indian rupees
(Reporting by Navamya Ganesh Acharya in Bengaluru; Editing by Sherry Jacob-Phillips)
