Titan Company on August 5 reported a year on year growth of 1,200 percent or 13 times in its standalone profit after tax at Rs 793 crore in the June quarter. On a sequential basis, the profit increased 61.5 percent.
Standalone revenue for the Tata group company rose 176 percent to Rs 8,961 crore. On a sequential basis, revenue rose 23 percent.
“The financial year has begun well for us and we delivered a strong performance across our business segments,” said managing director CK Venkataraman. “Despite a challenging macro environment, the outlook for the remaining quarters looks positive and we continue to execute our investment plans in India as well as chosen international geographies.”
The revenues and profit surge comes on a low base of last year which was impacted by the COVID second wave. All three verticals of jewellery, watches and eyewear reported robust year on year as well as sequential growth aided by pent-up demand and strong footfall.
The mainstay jewellery business delivered a robust performance during the quarter registering a year on year revenue growth of 208 percent at Rs 7,600 crore (excluding bullion).
Growth in revenues was aided by good Akshaya Tritiya sales and a better studded mix.
EBIT (earnings before interest and tax) for the jewellery business surged 396 percent to Rs 1,027 crore year on year.
Watches and wearables business witnessed its best quarter ever in terms of sales. The income for the business jumped 169 percent year on year to Rs 785 crore. The business generated a positive EBIT of Rs 103 crore for the quarter against a loss of Rs 56 crore a year ago.
Income for the eyecare business increased 173 percent year on year to Rs 183 crore while EBIT stood at Rs 36 crore against a loss of Rs 13 crore a year ago.
Other businesses of Indian dresswear and fragrance & fashion accessories also had a strong quarter as income during the quarter jumped 300 percent year on year to Rs 56 crore. The business, however, is yet to turn positive at the EBIT level and generated a loss of Rs 10 crore compared to a loss of Rs 16 crore a year ago.
Titan was trading Rs 22.1 higher at Rs 2,445.2 on August 5 on the National Stock Exchange. The stock has generated returns of 36 percent during the past one year and has gained 25 percent over the past one month.
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