Shares of Titan Company rose nearly 2 per cent in intra-day trade on Thursday after the Tata Group company reported a 14.42 per cent year-on-year growth in its consolidated net profit at Rs 348.30 crore for the fourth quarter ended March 31, 2019, helped by robust performance by jewellery division.
The watches and accessories maker, which had delivered more than 2,500 per cent returns on shares to investors in the last 10 years, had posted consolidated net profit of Rs 304 crore in the same quarter last year.
The consolidated revenue of the owner of Titan watches and Tanishq jewellery surged 19 per cent to Rs 4,945 crore as compared to Rs 4,125 crore in the same quarter last year.
Boosted by strong Q4, Titan Company shares gained as much as 1.98 per cent and touched an intra-day high of Rs 1109.90 against previous close level of Rs 1088.35 on the Bombay Stock Exchange. Paring some of early losses, the scrip was currently trading at Rs 1,096.10, up 0.71 per cent. There was also spurt in volume trade with 0.79 lakh shares have already changed hands in early deals as compared to two-week average of 0.79 lakh shares.
In a similar trend, Titan Company share price were currently trading 0.96 per cent higher at Rs 1,099.10 apiece on the National Stock Exchange. The scrip opened at Rs 1,100 against previous close level of Rs 1,088.70, and touched an intra-day high and low of Rs 1,110 and Rs 1,088.70, respectively.
The stock has gained 12.23 per cent during the last one year and risen 16.86 per cent since the beginning of this year.
A total of 27 brokerages out of 31 rated the stock 'buy' or 'outperform', three 'hold' and one 'underperform', according to analysts' recommendations tracked by Reuters.
Titan Company's balance sheet showed that the consolidated net profit stood at Rs 1,389 crore for the financial year ended 2018-19 as against Rs 1,101.91 crore in 2017-18. Total income increased to Rs 19,961.46 crore in FY19 from Rs 16,244.81 crore in FY18.
Commenting on earnings, Titan Company Managing Director Bhaskar Bhat said, "The growth momentum of the past few years continued in 2018-19 backed by the strong revenue as well as profit growth across all key divisions."
Segment wise, the jewellery division reported strong revenue growth of 21 per cent, while the watch segment saw a modest growth of 7 per cent during the March quarter.
The company's board has recommended a dividend of Rs 5 per share of Rs 1 each.
Looking forward, the company expects nearly 20 per cent growth in FY20 despite muted outlook for the economy.
Edited by Chitranjan Kumar