TTK Prestige Ltd reported a 36.5% drop in third-quarter profit on Tuesday, hurt by higher inventory expenses as surging inflation hit demand for its home and kitchenware products. “Kitchen appliances have seen a reduced share of wallet and tepid demand due to spending on alternate avenues,” the company said in a statement.
TTK said it expects weaker demand due to inflation to persist through the fourth quarter. The Bengaluru-based company’s consolidated profit fell to 575.8 million rupees ($7.1 million) in the quarter ended Dec. 31, from 907 million rupees a year earlier.
The company said expenses for changes in inventory were 96.5 million rupees in the quarter, while it was a negative 503.9 million rupees in the year-ago period. TTK’s consolidated revenue slid 9.15% to 6.95 billion rupees in the quarter, with declines in all product categories.
Sales in its appliances division, which accounts for nearly half of the company’s total sales, fell 7%. Sales of cookers, including those of the Prestige brand, dropped 10%. TTK’s domestic sales slid 8.3%, while exports sank almost 40%.