TTK Prestige (517506) Q4 97/98 earnings summary

Executive summary

• FY98 turnover fell to Rs111.43cr from Rs122.83cr; industrial unrest, delayed projects, recession and discontinued personal-products trading weighed on results.

• Export sales reached a record Rs16cr, with new market entries in the UK and Australia; first-quarter FY99 exports exceeded Rs10cr.

Financial highlights

• Sales were Rs111.43cr versus Rs122.83cr; total income was Rs116.35cr versus Rs126.10cr.

• PBT declined to Rs5.93cr from Rs12.39cr; PAT was Rs5.08cr versus Rs8.39cr, before a separate Rs69.61 lakh provision for prior-year tax.

• Other income rose to Rs4.92cr from Rs3.27cr, including Rs1.50cr exchange gain and Rs45.15 lakh profit on share sales.

• Proposed dividend was Rs2.50/share, a 25% rate; EPS was Rs4.48.

Outlook and guidance

• Q1 FY99 performance was encouraging, with record exports above Rs10cr; management expected comparable export performance in subsequent quarters, barring unforeseen circumstances.

• New and upgraded models were planned for FY99 to reactivate domestic demand and increase market share; working-capital management and turnover were targeted for improvement.

• Most delayed capital-expenditure projects were expected to be completed during FY99.