TT Ltd posts 37.56% increase in turnover post restructuring exercise
TT Ltd in its Board Meeting on August 8th. 2018 in New Delhi declared its June 2018 quarter ending results. It posted a turnover of Rs 172.38 crores and PAT of Rs. 0.94 crores. This marked an increase in turnover by 37.56% over Q1 2017 and the net profit turned decisively positive from a negative one last year.
Managing Director, Sanjay K Jain attributed this turnaround to multiple factors i.e. GST & demonetisation negative impact finishing, business shift to organised sector post GST, Rupee depreciation, shift of focus from spinning to branded garments. He said the real impact of the restructuring exercise of the Company will only start being visible from Q3 of 2018-19 once the new garment factories start full fledged production in Gajroula and Avinashi units. He said the
Kolkata factory would only start next year. He said currently the Company was bearing infrastructure cost in the transitionary period of shifting from Spinning to Garments. The Gajroula, UP garment unit was formally inaugurated on July 18th however would take a few months to stabilise. He said the Company's full focus is in its branded Inner and Casual wear portfolio which is slowly starting to see an uptick. He said going forward garment business is expected to grow by 30-40% which will improve its EBITDA margins and would reduce the
overall risk exposure to the outside environmental and economic changes happening across the globe.
He said apart from the TT brand, its new garment brand, HiFlyer is slowing gaining market acceptance. Further their EBO chain of stores under TT Bazaar is steadily growing and we see at least a 50% growth there. As per him most GST issues are resolved and organised companies like TT Ltd are seeing many positives as it gains a competitive advantage over the large unorganised segment. Hence growth is expected to come from both consumption growth and shift of consumers to the organised brands. The Company is also investing in technology to connect with the distributional channel and its consumers - this is expected to bring in huge benefits in the days to come.
Lastly, seeing the focus of the Government on this labour intensive industry, many positive announcements are expected (some like increase in import duty, GST Refund allowance on fabric have already happened). The overall environment of textile industry which was negative for the last 2 years is suddenly seeing a lot of positives and expectations of a high growth year are high. The normal monsoons and Elections next year are expected to push consumption growth rates.
Shares of T T LTD. was last trading in BSE at Rs.84.3 as compared to the previous close of Rs. 84.15. The total number of shares traded during the day was 7414 in over 101 trades.
The stock hit an intraday high of Rs. 88 and intraday low of 83.05. The net turnover during the day was Rs. 630805.