India's TTK Prestige posts lower profit as consumers tighten spending

Reuters
·2-min read

(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.

For further results highlights, click

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)

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