India's TTK Prestige posts lower Q1 profit on weak demand

BENGALURU (Reuters) - India's TTK Prestige reported a 13% fall in its first-quarter profit on Friday as budget-conscious consumers opted for cheaper brands.

The kitchenware maker reported a consolidated net profit of 417.5 million rupees ($5 million) in the quarter ended June 30 from 480.2 million rupees a year earlier.

Revenue from operations stayed flat at 5.88 billion rupees, while total expenses rose 2%, the company said.

KEY CONTEXT

India's kitchen appliance makers have been offering discounts in both stores and online platforms to attract consumers.

India's retail inflation rate for the April-June quarter hovered around 5%, primarily due to high food prices, prompting consumers to cut back spending on non-essential items.

Kitchenware makers have also been facing stiff competition from smaller domestic players, selling products at lower prices.

PEER COMPARISON

Valuation (next 12 Estimates (next 12 Analysts' sentiment

months) months)

RIC PE EV/EBI Price/ Revenue Profit Mean # of Stock to Div

TDA Sales growth growth rating* analyst price yield

s target** (%)

TTK Prestige 42.50 31.67 - 8.91 18.54 Hold 4 1.09 0.66

Crompton Greaves 45.82 30.42 2.77 12.50 30.99 Buy 31 1.07 0.67

Consumer Electricals

Bajaj Electricals 44.26 27.50 - 16.52 52.42 Buy 7 0.96 0.30

V Guard Industries 52.44 35.69 - 13.50 29.72 Buy 18 1.05 0.30

* Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell

** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT

APRIL-JUNE STOCK PERFORMANCE

-- All data from LSEG IBES

-- $1 = 83.6930 Indian rupees

(Reporting by Ashna Teresa Britto in Bengaluru; Editing by Eileen Soreng)