TTK Prestige has dipped 10 per cent to Rs 5,850 on the National Stock Exchange in intra-day trade yesterday after the company reported single digit 3.9 per cent year on year growth in standalone net profit at Rs 35.39 crores for the quarter ended 30th September, 2016 (Q2 of FY17). The company engaged in kitchen appliances business had profit of Rs 34.04 crores in year ago period.
Net sales of the company during the quarter ended 30th September 2016 increased by 12.9 per cent to Rs 463 crores against Rs 410 crores in the corresponding quarter of previous fiscal. The EBITDA (earnings before interest, taxes, depreciation, and amortization) margin stood at 12.01 per cent against 12.73 per cent in previous year quarter. “EBIDTA margin stable in spite of input material cost increase (as compared to previous year) and composition of sales with higher appliance content. Also company has been making soft investments in new category and market expansion,” TTK Prestige declared in a release.
Going forward, good South-West monsoon and infrastructure investment is likely to improve the sentiments of the consumer. The month October of 2016 witnessed significant growth propped up by festive demand. The favorable commodity prices and internal efficiencies can yield better margin. The company said focus will be on growth as well as improving market share which can have some transient impact on margin per cent but will benefit the company in the long-term.
The stock has seen a strong run-up in past two-months, appreciated 34 per cent as compared to 3.5 per cent decline in the Nifty50 Index till Wednesday.
Currently TTK Prestige share price is trading at Rs 5,976.00, up by 1.97 per cent or 115.35 points. The share price opened at Rs 5,895.00 from a previous closing of Rs 5,860.65. Get the most important support and resistance levels of the share at TTK Prestige share price forecast.
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