TT Ltd Quarterly Results Highlights;

The top-line of the company increased 29.15% YoY to Rs 98.08 cr as against Rs 75.94 cr.

The EBITDA expanded by 42.41% to Rs 10.88cr as against Rs 7.64cr.

The net profit improved by 216.9 % YoY to Rs 4.5 cr due to impressive growth in its major business segments.

Company Profile:

TTL is the flagship company of the 58-year-old TT group, a household name in textiles with its popular TT brand. Earlier known as Tirupati Texknit, it is now a vertically integrated textiles manufacturer, mainly producing cotton, yarn, fabric, garments and accessories.

Segments of TT Ltd

Cotton: Cotton comprises of 8% of total revenues of the business in FY10. It buys kapas or cotton and sends it for ginning at its own facility at Gujarat. After ginning pure cotton fibre is stored to manufacture yarn.

Yarn: Company is a leading organic & recycled cotton yarn manufacturer in India. It has three spinning mills in Gajroula (U.P.), Avinashi (Tamil Nadu) and Rajula (Gujarat) with installed capacity of 55824 spindles. It is planning to do further expansion on account of rising.

Fabrics: Fabrics constitutes 7% of total revenues of the business in FY10. It has an installed capacity of 2 mn kgs p.a. for fabrics. It also manufactures fabric through job work. Its knitted fabric is knitted from the finest quality yarn especially chosen for its shine and luster.

Garments: Company manufactures garments under the brand name “TT”. Their garment comprises of knitted inner ware garments for men, women and kids and casual wear for men and kids. They are consistently spending on advertisement to increase the visibility of “TT’ brand.

During the quarter ended Sep’10, TT Ltd’s net sales grew 29.15% (y-o-y basis) to Rs 98.08 cr from Rs 75.94 cr during the corresponding period last year. The operating profit of the company witnessed a growth of 42.41% to Rs 10.88 cr as against Rs 7.64 cr last year. The Operating profit margin of the company surged 103 bps to 11.09% as against 10.06% during the same quarter last year. The bottom line of the company grew by a massive 216.9% for the quarter ended Sep, 2010 to Rs 4.5 cr as against Rs 1.42 cr during the corresponding period last year. However, on q-o-q basis, the company’s topline declined by 13.96% but bottom line increased by 3.93% for the quarter ending Sept’10.

The company’s robust performance is due to the overall recovery in the global textiles scenario and the company’s thrust on its value added knitwear segment where it recorded a topline growth of 100%. Company has tripled its advertisement budget as against last year first half and is planning to further step up advertisement through electronic, press and local media for its “TT” brand. Its “TT” brand has been a well known household brand for men innerwear in Northern India.

The company has also made a foray in value added organic products. It has got certification from Control Union, Europe and is exporting organic yarn in a big way. Further it has currently introduced range of organic innerware – GREEN VESTS & BRIEFS for the first time in India. It now plans to expand its knitwear markets to Middle East & Africa where product requirements are similar to India. The company is already exporting its fibre and yarn to over 35 countries spread across 5 continents.