Indian kitchenware maker TTK Prestige's Q3 profit hit by slowing consumer spending

Voltas

28/01/2025 08:55

Jan 28 (Reuters) - India's TTK Prestige  TTKL.NS , whose kitchen appliances range from pressure cookers to electric
chimneys, reported a 6.4% decline in third-quarter profit on Tuesday as consumers reined in spending due to persistently
high inflation.
    The company's shares dropped 5.5% in afternoon trading.
    TTK's consolidated net profit fell to 584.5 million rupees ($6.8 million) in the quarter ended Dec. 31, from 624
million rupees a year earlier.
    Revenue decreased 1.5% to 7.27 billion rupees, while total expenses were largely flat.
    For further earnings highlights, click (Full Story)
    
    KEY CONTEXT
    Premium household appliances and kitchenware makers have been grappling with a slowdown in discretionary spending in
urban areas as persistently high food prices pressure household budgets.
    In the rural segment, demand has slackened as microfinance lenders have been extending fewer loans due to asset quality
deterioration.
    After the festive sales in October, which included the festival of Deepavali, demand was sluggish in the rest of the
quarter, TTK said.
    Besides that, higher prices of key raw aluminium have also been weighing on kitchenware makers' margins.
    
    PEER COMPARISON
                                Valuation (next 12    Estimates (next 12      Analysts' sentiment
                                months)               months)                 
                        RIC     PE      EV/EBITDA     Revenue      Profit     Mean      # of      Stock to price  Div yield
                                                      growth(%)    growth     rating*   analysts  target**        (%)
                                                                   (%)                                            
 TTK Prestige                                                                                                  
 Crompton Greaves                                                                                              
 Voltas                                                                                                        
 Havells India                                                                                                 
 
* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the
PT
    
OCTOBER TO DECEMBER STOCK PERFORMANCE

 
 -- All data from LSEG
 -- $1 = 86.5300 rupees

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TTK Prestige stock price performance    https://tmsnrt.rs/4jvJ4yo
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 (Reporting by Ananta Agarwal in Bengaluru; Editing by Sherry Jacob-Phillips)
 ((Ananta.agarwal@thomsonreuters.com;))