Prestige Estates

TTK Prestige has disappointed with its Q2 numbers for the quarter ending 30-9-13, with net sales showing a growth of just 3% on YoY, with net sales at Rs. 346 cr. for Q2 FY 14, against Rs. 336 cr. for Q2 FY 13. Raw material costs and trading purchases, rose to Rs. 204 cr. against Rs. 189 cr. and has been the sole culprit, in bringing down the margins. Depreciation for the quarter rose to Rs. 3.97 cr. against Rs. 2.15 cr., as company has added Rs. 139 cr. to the fixed assets in H1 of FY 14.PAT is placed at Rs.30.30 cr., against Rs.30.28 cr. This is inspite of the lower tax liability in Q2 of FY 14, at Rs.6.56 cr., against Rs.13.78 cr. Thanks to the tax breaks available on expansion. But deferred tax, being non cash item, rose to Rs. 4.01 cr. for the quarter, against Rs. 87 lakhs. Hence, cash profit for the quarter is higher at Rs. 38.28 cr., against Rs. 33.30 cr.

Due to preferential issue of 3 lakh shares, made by the company on 19.07.2013, at Rs. 3,550 per share, equity capital rose to Rs. 11.65 cr. from Rs. 11.35 cr. and reserves rose to Rs. 545 cr. against Rs. 384 cr. on 31st March, 2013. Receivables during H1 increased from Rs. 143 cr. on 31.03.2013 to Rs. 186 cr., but short term borrowing got reduced to Rs. 53 crores as at 30.09.2013, from Rs. 114 cr. as at 31.03.2013.

Share is likely to correct in the near term and one may look to buy it at around Rs. 3,350.