Titan Q2 net profit rises 2% to Rs 320 crore; high gold prices hit jewellery biz
BusinessToday.In November 5, 2019
Tata Group firm Titan Company on Tuesday reported 1.8 per cent year-on-year (YoY) growth in standalone net profit at Rs 320.16 crore for the second quarter ended September 30, 2019, affected by subdued performance in jewellery business.
The jewellery and watch manufacturer had posted standalone net profit of Rs 314.38 crore in the same quarter last year," Titan Company said in a filing to the Bombay Stock Exchange.
Revenue from operations during July-September quarter stood at Rs 4,435 crore, against last year's income of Rs 4,407 crore during the same period. The total income rose marginally by 0.7 per cent to Rs 4,466 crore in Q2FY20, from Rs 4,434 crore in Q2FY19.
During the quarter under review, EBITDA (Earnings before interest, tax, depreciation and amortisation) jumped 10.1 per cent to Rs 544 crore against Rs 494 crore in the corresponding quarter of the last year.
The profit before tax declined 3.7 per cent to Rs 429 crore versus Rs 446 crore in the same period last year, "impacted due to the flat growth in revenues compounded by increase in certain overheads".
On the consolidated basis, Titan posted a net profit of Rs 311.65 crore, while total income stood at Rs 4,699.34 crore during the quarter under review.
Segment wise, the jewellery business had a subdued quarter due to very high gold prices, recording revenue of Rs 3,528 crore as compared to Rs 3,582 crore last year. The watches business recorded an income of Rs 719 crore against Rs 676 crore in the previous year, a growth of 6.4 per cent. The eyewear business grew by 28.5 per cent in the quarter, recording an income of Rs 154 crore as against Rs 120 crore last year. Other segments of the company comprising accessories, fragrances and Indian dress wear grew by 33.2 per cent in Q2 recording an income of Rs 44 crore.
As of September 30, 2019, the company's retail chain stands at 1,668 stores, with a retail area crossing 2.1 million sq.ft. nationally for all its brands.
Commenting on Q2 earnings, CK Venkataraman, Managing Director of Titan said, "The company has done well across all its businesses in the second quarter given the subdued market and consumer sentiments. The Jewellery business has done better than most players in the industry. Both the watches as well as eyewear business have recorded good growth.
"For the second half of FY 20 we are gearing up on all fronts to stimulate demand with innovative campaigns for new exclusive collections that are lined up for launch across all our brands," Venkataraman added.
Ahead of earnings announcement, shares of Titan closed trade at Rs 1,283.85 apiece, down 1.20 per cent, on the Bombay Stock Exchange.
Edited by Chitranjan Kumar