TTK Prestige Q4 Results: Stock falls due to net loss, sharp decline in margins

TTK Prestige Ltd., the manufacturer of domestic appliances, reported its March quarter results on Tuesday, May 27, which were lower on a year-on-year basis on most parameters. The stock fell as much as 8% in response to the results.

The company reported a net loss of ₹40.64 crore during the March quarter, which is in comparison to the net profit of ₹58.7 crore it reported during the same quarter last year. The net loss was courtesy of an exceptional loss of ₹71.42 crore that the company recognised during the January-March period.

“During the quarter, TTK Prestige and its subsidiaries has considered the possible effect of global trade and geo-political conflicts in its UK operations and its impact on the carrying amount of investments and goodwill and has tested the same for impairment during the quarter. This has resulted in an impairment charge of ₹71.42 crore on a consolidated basis during the quarter,” the company said in its notes to account.
Revenue for the quarter increased by 4.3% from the year-ago period to ₹650 crore. Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter declined by 33% year-on-year to ₹51.53 crore, while margins narrowed by nearly 500 basis points to 7.93% from 12.45% last year.

TTK Prestige highlighted that the demand in the traditional channel, which included general trade, exclusive stores, e-commerce and modern formats did well during the quarter, while the alternate channel, which includes rural channel dependent on MFI and institutional channel, continues to remain affected.

The sales lost due to this during the quarter stood at ₹32 crore and for the full year, it stood at ₹125 crore.

Traditional channel grew by 10.2% during the quarter, but the alternate channel offset that down to 2.7%.

Shares of TTK Prestige are currently trading 5.9% lower after the results announcement at ₹643.6. The stock has declined 38% from its 52-week high of ₹1,025.