TTK Prestige Q2 profit drops 29.3% to Rs 59.27 crore, revenue falls 13.4%

TTK Prestige on Friday posted its second quarter earnings for the financial year 2023-24 with profit at Rs 59.27 crore, down 29.3 per cent as against Rs 83.85 crore during the corresponding quarter of FY23. It posted revenue from operations at Rs 729.47 crore, down 13.4 per cent as against Rs 842.35 crore during the quarter ended September 2022. The company EBITDA stood at Rs 80.9 crore, down 31.7 per cent on-year. Consolidated turnover was recorded at Rs 729.5 crore.

On a standalone basis, TTK Prestige posted Q2 profit at Rs 62.2 crore. The company posted domestic sales at Rs 665.4 crore as against Rs 790.6 crore during the previous year period since the festive season was delayed as compared to the previous year. Meanwhile, export sales for the quarter was at Rs 18.3 crore registering a growth of 6 per cent on-year. Total sales was at Rs 683.7 crore as against Rs 807.9 crore of last year.

TTK Prestige said that the company has introduced 49 new SKUs during the quarter across all categories. Prestige Xclusive chain strength stood at 678 in 373 towns contributing significantly to total sales. However, all channels witnessed degrowth during this quarter due to tepid demand environment, it added.

“The repositioning of the Judge brand is progressing as per plan though the positive impact of this change will be more visible over the next couple of quarters once we phase out the inventory in the old packaging and replace the same with the new packaging and additional SKUs across the expanded distribution network,” it said.

Performance by key subsidiaries

TTK Prestige’s UK subsidiary, Horwood Homewares achieved a sale of £3.5 million during Q2FY24 (PY £3.8 million) and £6.6 million during 1st Half FY24. “The expected recovery in the economy failed to materialise in any substantial way during this quarter with increasing interest rates continuing to hinder the growth. The UK experienced unseasonably warm weather, causing increased spend on leisure activities and a drop in retail footfall. Kitchenware industries continue to face these challenges more than other products,” it said. Horwood’s Operating EBITDA for Q2 was at £(0.08) million [PY £ 0.07 million]. The improvement in EBITDA for 1st Half was achieved primarily through improvement in operating efficiencies and cost reductions, it added.

Meanwhile, its Indian subsidiary, Ultrafresh Modular Solutions achieved a sale of Rs 8.8 crores during Q2FY24 and against Rs 6.4 crore during the previous year. “Being an associate company up to December 2022, the net loss of Ultrafresh for the period from 1st Apr to 30th Sep 2023 proportionate to the share holding up to that period viz. Rs (1.41) crore (Rs 0.64 crore for Q2FY23) is consolidated appropriately in the consolidated financials,” it said. For the period from Apr to Sep 23, the net Profit before tax of Rs (2.6) crore [including Rs 0.61 crore for Q2FY24] is considered in the consolidated financials as applicable to the subsidiary. Ultrafresh added 5 studios during the year Q2FY24 totalling 154 active studios as of 30th Sep 2023.

Going forward

TTK Prestige said that with the global economy which was already affected by Ukraine-Russia geopolitical issues, is further affected now with the geo-political conflicts in West Asia which is likely to impact the crude prices contributing to inflationary trends. Further, the Indian economy is projected to grow by 6.0 and 6.6 per cent in FY24 subject to headwinds that may arise on account of global factors as well as deficient rains witnessed in many geographies.

“With both Dussehra and Diwali festivals falling in the third quarter coupled with low base of the Q3 of last year, the growth in the Consumer Durable industry is expected to be better in the coming quarter. The Company will continue its focus on improvement in efficiencies and management of critical costs to maintain EBITDA margins at a healthy level,” it said. TTK Prestige has slated for launch around 49 new SKUs during Q3 of FY24.