TTK Prestige reports negative financial performance in Q1 FY25, concerns over PBT and PAT

Domestic appliance company TTK Prestige has recently announced its financial results for the quarter ending June 2024. According to the latest report, the company has seen a negative performance with a score of -13, a significant decrease from the previous quarter’s score of -1.

However, there are some positive aspects to the financials. TTK Prestige has shown a strong cash position with cash and cash equivalents of Rs 664.65 crore in the last six half-yearly periods. This indicates an improvement in short-term liquidity. Additionally, the company has been able to settle its debtors faster, with a debtors turnover ratio of 9.11 times in the last five half-yearly periods.

On the other hand, there are some concerning factors in the financials. The profit before tax (PBT) has fallen by 40.3% to Rs 33.72 crore, compared to the average PBT of the previous four quarters. Similarly, the profit after tax (PAT) has also decreased by 26.9% to Rs 41.75 crore, compared to the average PAT of the previous four quarters. The net sales have also seen a decline of 12.2% to Rs 587.93 crore, compared to the average net sales of the previous four quarters.

The operating profit (PBDIT) has also hit a low of Rs 54.45 crore in the last five quarters, indicating a negative trend in the near term. The operating profit margin has also decreased to 9.26%, the lowest in the last five quarters, showing a decline in the company’s efficiency. The non-operating income is also a concern, as it is 38.72% of the PBT. This suggests that the company’s income from non-business activities is high, which may not be a sustainable business model.

Furthermore, the earnings per share (EPS) have also decreased to Rs 3.01, the lowest in the last five quarters. This indicates a decline in profitability and lower earnings for shareholders. The non-operating income has also seen a significant increase to Rs 21.31 crore in the last five quarters, which may not be sustainable in the long run.

Overall, TTK Prestige has seen a negative financial performance in the quarter ending June 2024. While there are some positive aspects, such as a strong cash position and faster debt settlement, the company needs to address the concerning factors to improve its financials in the future. Based on these financials, MarketsMOJO has given a ‘Hold’ call for TTK Prestige’s stock.