TT Ltd (BSE: 514142, NSE: TTL), the leading textile and garments company has posted a net profit of Rs 0.76 cr for Q3FY18 and reduced its debt burden from Rs 186 cr in March to Rs 157 cr in December. The improvement in performance is attributed to the company shifting focus to value added garments business and positive sentiments created after GST Implementation.
TT Ltd has climbed from 121 levels to 129 levels this week in BSE on improving performance. It had hit a 52-week high of 141.50 earlier this month. On a returns perspective, 24.63% monthly, 78.12% quarterly and 51.77% half-yearly is much above Nifty returns. Return on equity of 3.42%, gross profit margin of 0.31%, liquidity ratios are below peer average while cash flows are better. Garments business increased by 51% in Q3 on annualised basis and up 19.74% Q-O-Q basis.
On technical charts, RSI of 60.92 is bullish, MACD has witnessed bearish crossover signalling sell, ADX of 42.93 indicates uptrend.
Going ahead the company could benefit from the restructuring plan with two of its spinning units disposed off. With further reduction in debts and increase in garment business, investor focus may shift to this legendary flagship of the 66 -year old TT Group. Founded by Dr Rikhab Chand Jain, It had the distinction to be in the entire spectrum of textile business- cotton, yarn, fabric, garments and accessories. It was the first knit wear company to go public.