Titan Company, a part of the Tata Group, on Wednesday reported 37.81 per cent year-on-year decline in net profit at Rs 199 crore for the second quarter ended September 30, 2020. The homegrown consumer goods company had posted net profit of Rs 320 crore in the same period last year.
The watch-to-jewellery maker posted 1.72 per cent decline in total income at Rs 4,389 crore in Q2 FY21, from Rs 4,466 crore in September quarter of 2019. The decline in total income excluding bullion sale was around 11 per cent. The total income for the quarter include sale of gold bullion to the extent of Rs 391 crore.
"Titan Company reported an 89 per cent recovery in sales in Q2 of FY21 led by sharp recovery in the jewellery division post the significant disruption caused by the COVID-19 pandemic in India in the first quarter of the fiscal," the Bengaluru-headquartered firm said in a filing to the BSE.
For the first half of the fiscal 2020-21 (April-September period), the total income was Rs 6,290 crore (including bullion sale of Rs 992 crore), a decline of 34 per cent against the income of Rs 9,461 crore in the corresponding period last year. The decline without considering the bullion sale was 44 per cent.
As on September 30, 2020, the company's retail chain (including CaratLane) stands at 1,832 stores, with a retail area crossing 2.4 million square feet for all its brands covering 290 towns.
Commenting on Q2 earnings, C K Venkataraman, Managing Director of the company said, "The recovery that the company has witnessed in the quarter has been very satisfying and the positive consumer sentiment witnessed gives rise to hope that the festive period could be good for all the divisions of the company. The company continues to gain market share in its key businesses aided by innovation and total commitment displayed by its employees and the extended business associate network. The focus on cost and capital employed has helped the company manage its bottom line and cash flows very well."
Meanwhile, shares of Titan Company were trading 2.7 per cent lower at Rs 1,199.40 apiece, against previous closing price of Rs 1,232.65 on the BSE.