Indias TTK Prestige posts quarterly revenue fall on weak rural gross sales

(Reuters) -Indian kitchenware maker TTK Prestige reported a 39% fall in fourth-quarter revenue on Tuesday, as rural volumes remained below strain attributable to lowered lending by microfinance establishments.

The firm reported a revenue earlier than tax and distinctive objects of 453.8 million rupees ($5.32 million) within the quarter ended March 31, down from 745.2 million rupees a 12 months earlier.

It booked a one-time impairment cost of 714 million rupees associated to its UK subsidiary, Horwood Homewares, on continued stress within the UK economic system, and the specter of tariffs from the U.S. probably compounding that, TTK stated.

Its shares had been down almost 6% after the outcomes.

Overall income from operations rose almost 4.3% to six.5 billion rupees, whereas whole bills elevated 9.5%.

For additional earnings highlights, click on right here.

Microfinance lenders have been issuing fewer collateral-free small loans to debtors within the rural components of the nation, amid rising default charges, following a interval of aggressive lending within the phase.

TTK Prestige, which has a “vital share of gross sales” from rural areas, stated it’s seeing a slowdown in rural volumes consequently.

While its gross sales from conventional channels, which embrace shops and e-commerce grew 10.2%, the gross sales hit in rural areas pulled general development right down to 2.7%.

Higher aluminium costs throughout the quarter additionally impacted efficiency, stated TTK.

Valuation (subsequent 12 Estimates (subsequent 12 Analysts’ sentiment

RIC PE EV/EBI Price/ Revenue Profit Mean No. of Stock to Div

TDA Sales development (%) development (%) score* analyst value yield

TTK Prestige 36.27 24.66 8.95 25.05 Hold 4 0.88 0.88

Voltas 37.87 30.48 2.19 11.56 19.51 Buy 33 0.87 0.44

Havells India 53.66 35.47 3.92 14.14 21.29 Buy 24 0.88 0.64

Crompton Greaves 34.00 21.78 2.38 10.89 19.15 Buy 30 0.82 0.84

* The imply of analyst scores standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell

** The ratio of the inventory’s final near analysts’ imply value goal; a ratio above 1 means the inventory is buying and selling above the PT

JANUARY TO MARCH STOCK PERFORMANCE

— $1 = 85.3790 Indian rupees

(Reporting by Ananta Agarwal in Bengaluru; Editing by Janane Venkatraman and Sherry Jacob-Phillips)