Titan Company share falls over 5% on weak Q2 earnings
BusinessToday.In October 29, 2020
Titan Company share closed over 3% lower today after the luxury goods firm reported a 37.81 per cent decline in its standalone net profit for quarter ended September. Titan stock has lost 4.45% in the last 2 days. Titan stock touched an intraday low of Rs 1155.5, down 5.12%.
Later, the large cap stock closed 3.36% or Rs 40.95 lower at Rs 1176 against previous close of Rs 1217.90 on BSE.
The share stands higher than 50 day, 100 day and 200 day moving averages but lower than 5 day and 20 day moving averages.
It has lost 11.7% in one year and 0.9% since the beginning of this year. Total 1.69 lakh shares changed hands amounting to turnover of Rs 19.95 crore.
Market cap of the firm fell to Rs 1.04 lakh crore.
Standalone net profit declined to Rs 199 crore for the quarter ended September 30 against net profit of Rs 320 crore in the corresponding period of the previous financial year.
During the quarter, Titan recognised a loss of Rs 484 crore, part of total expenses, as a result of change in the cash flow hedging relationship due to an increase in sales compared to the original sales forecast and availment of the moratorium offered on the gold on loan.
'This has led to pre-closures of hedge contracts originally designated against sales in the subsequent quarters and redesignation of certain open contracts. Consequently, these hedging contracts have been accounted as ineffective hedges,' the company said.
Titan's total expenses during the quarter rose to Rs 4,151 crore as against Rs 4,037 crore a year ago.