Popular hosiery and textile brand T T Ltd’s turnover increased from Rs 152.74 crore in Q1 2014-15 to Rs. 187.33 crore in Q1 of 2015-16. Net profit also increased from Rs. 0.76 crore to Rs 1.56 crore. The growth of 23% and 103% in top line and profits respectively bucked the trend of overall slowdown in exports and domestic consumption of textiles.
Managing director Sanjay K Jain said that the company was able to show such a strong performance because of aggressive marketing in China of cotton yarn and creation of a strong brand equity for itself in the largest market of the world. Hence, despite slowdown of exports, the company has increased its export turnover by 30% even after a much lower unit realization due to fall in prices by about 15%.This year overall consumer demand has been slow in the country. Despite this the value-added garments segment of the business has done well, showing a 15% increase due to the strong product and brand leveraging of the company. The TT Ltd is increasing its product range and re-designing marketing communications to reach out strongly to the growing youth segment, especially in rural and semi-urban areas. Its new slogan “Achhe lage, achhe dikhe” has caught the fancy of the rural consumer.
The company is well poised to take advantage of the growing consumer spend in the coming days. It has also placed itself on all online shopping sites to ensure that it isn’t left behind in the ecommerce boom.
Going ahead, the company is positive to increase both top line and bottom line. The company will be further benefited by the falling interest regime. It is also in process of disposing some non-productive assets which will further reduce its interest cost.
Further, the monsoon and high inventory of cotton in China, is likely to keep raw cotton prices at low levels which would benefit the value-added segment significantly. This and the fall in prices of all commodities across the board are also expected to improve margins for its value-added garments.
The company is also proud to announce that its brand T T has been given the status of “Most Promising Brand” by World Consulting & Research Corporation (WCRC) and Process Advisor Ernst & Young. The same is to be awarded in London very soon. The main focus for the company is to stress on brand building and increasing garment sales and exports, Jain added.
