TT Q1 sales up 23 percent, profit soars by 103 percent

TT, announced its Q1 results for the fiscal year 2015-16 where its turnover increased from Rs 152.74 crores in the first quarter of 2014-15 to Rs 187.33 crores. Net profit increased from Rs 0.76 crores to Rs 1.56 crores a rise of 23 percent and 103 percent in top line and profits respectively.

Commenting on the strong performance, managing director Sanjay K Jain, the company’s MD said, “The company was able to show such a strong performance despite the weak domestic consumption, lower prices and slow exports. The primary reason for the same has been the aggressive marketing in China of cotton yarn and creation of a strong brand equity in the largest market of the world. Hence despite slowdown in exports, the company increased its export turnover by 30 percent despite a much lower unit realization due to fall in prices by about 15 percent.”

“This year overall consumer demand has been slow in the country. However, despite this the value added garments segment of the business has done well, showing a 15 percent increase. The company is increasing its product range and re-designing its marketing communications to reach out strongly to the growing youth segment, especially in rural and semi-urban areas,” he added.

The company is well placed to take advantage of growing consumer spend. TT is also in process of disposing some non productive assets, which will further reduce its interest cost. Better than expected monsoon and high inventory of cotton in China, is expected to keep raw cotton prices at low levels which would benefit the value added segment significantly. This along with a fall in prices of all commodities across the board is also expected to improve margins for its value added garments.