TTK Prestige Sees Low-Key Results For Q1FY13

The first quarter of FY14 has not turned out well for TTK Prestige with respect to its balance sheet. For the quarter, the company’s bottomline fell by 16% YoY and stood at Rs 25.8 crore as against Rs 30.68 crore in the same quarter last fiscal.

The fall in the profits can be attributed to the rise in raw material cost. This came in at Rs 105.28 crore for the quarter as against Rs 79.40 crore for Q1FY13, marking a rise of 33% on a yearly basis. The raw material prices as a percentage of net sales stood at 34.37%, a whopping 813 basis points’ rise on a YoY basis.

The company’s EBITDA margins also dropped 230 basis points YoY and 170 basis points on a sequential basis to 13.5% during the quarter. The last time that the company had arranged for a concall, it was mentioned that they are expecting a 50 basis points contraction in EBITDA margins every year for the next 2-3 years.

On the topline front, though, the net sales increased marginally to Rs 306.3 crore in the April-June quarter from Rs 302.5 crore in the corresponding quarter of the last fiscal, registering a gain of a mere 1.25%.

On the day of the results announcement (July 16), the stock was down by 4.55% in trades and closed at Rs 3480. We attempted to get some more clarifications on the segmental front, but calls made to the company went unanswered.