Moneycontrol Bureau Fewer wedding dates and high gold prices hurt Titan Company's business in April-June period. The watches and jewellery manufacturer's profit fell 16.3 percent to Rs 126.69 crore in Q1FY17 from Rs 151.5 crore in corresponding quarter last fiscal. The company had to bear an exceptional loss of Rs 97 crore due to voluntary retirement scheme announced during the period. During the period, its revenue was marginally up 3.3 percent at Rs 2791 crore against Rs 2708.6 crore in year-ago period.
According to a CNBC-TV18 poll, Titan in Q1 was expected to increase 21.85 percent year-on-year to Rs 184 crore and revenue 15 percent to Rs 3111 crore.
EBITDA in Q1 was up 31.9 percent at Rs 292.2 crore versus Rs 221.5 crore while EBITDA margin was at 10.44 percent versus 8.18 percent year-on-year.
Revenue growth for jewellery segment, which contributes 78 percent to total revenue, grew 3.2 percent at Rs 2138.32 crore from Rs 2072.91 crore. Its watch business revenue was up 1.4 percent to Rs 491.72 crore from Rs 485.17 crore (YoY).
The company's eyewear business grew by 2.7 percent to Rs 109.87 crore from Rs 106.93 crore. Titan's other business including precision engineering grew by 36.2 percent to Rs 63.92 crore this year.Bhaskar Bhat, MD of the company said, "Growth has been muted and our jewellery business has grown despite a reported drop of 50 percent in gold imports during first half of this calendar year. The watches business introduced a new sub-brand Octane and jewellery business launched Niloufer which have received a good consumer response."
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
