Titan Q2 results: Net profit rises 222% to Rs 641 crore, sales up 78 per cent

Titan Company Ltd on Wednesday reported a 222 per cent year-on-year (YoY) rise in its net profit at Rs 641 crore for July-September quarter on the back of a strong recovery in its consumer business.
 
The company's revenue from sales of product and services grew 78 per cent YoY to Rs 6,921 crore during the quarter under review, while earnings before interest, tax, depreciation and amortisation (EBITDA) rose 175 per cent to Rs 1,004 crore.
 
"With jewellery division doing exceeding well, and other divisions swiftly bouncing back to pre-pandemic levels, total income for the quarter was Rs 7,220 crore, including bullion sale of Rs 192 crore, a growth of 64 per cent compared to total income of Rs 4,389 crore in Q2 FY21 that included bullion sale of Rs 391 crore," the company said in a release.
 
The jewellery division has been witnessing strong sales post the second COVID-19 wave, with its total income growing 77 per cent to Rs 6,106 crore during the quarter.
 
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The watches and wearables business grew 72 per cent YoY to record an income of Rs 687 crore, while the eyewear business recorded an income of Rs 160 crore with 70 per cent growth.

The other segments of the company, comprising Indian dress wear, fragrances and accessories recorded an income of Rs 46 crore during the quarter as compared to Rs 23 crore in Q2 FY21.
 
"The underlying gross margin has been gradually improving and was at best levels over the recent six quarters. The improvement has been driven primarily by recovery of jewellery's gross margin but is still below corresponding pre-pandemic period of Q2 FY20 due to change in business mix and lower studded ratio," the company said.
 
Titan said it has accelerated its store additions, adding a net 60 stores in the first two quarters of FY22. Shares of Titan on Wednesday closed 0.14 per cent higher at Rs 2,460.35 on the BSE.

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