Moneycontrol Bureau
Shares of TTK Prestige fell round 9 percent on dismal July-September quarter earnings. It reported flattish second quarter net profit (Rs 30.30 crore) while total income from operations grew by 2.97 percent to Rs 345.54 crore.
However, margins were lowest in 18 quarters reflecting pressure from sharp currency depreciation. Operating profit margin declined 200 basis points to 12.8 percent in September quarter from 14.8 percent in a year ago period.
The management seems to be confident. TT Jagannathan, chairman of the company feels that the performance has been in line with expectations. The market in South India continues to face problems and we lost 12 percent in the region, he tells CNBC-TV18. He also adds that non-South areas’ sales have grown smartly by 34 percent.
On the company’s stressed margins, Jagannathan says that the rising overhead costs could be attributed to those. On a year-on-year (YoY) basis, the company is targeting lower margins by 50 basis points (bps) against FY13. The company is expecting FY14 topline growth to be at 10 percent, while bottom-line growth will be around 6 percent.
Espirito Santo maintains their sell call since it does not see any improvement going in second half as consumer sentiments remain weak.
At 12:25 hrs the stock was at Rs 3,336.00, down Rs 145.05, or 4.17 percent on the BSE.
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