Moneycontrol Bureau
Watch and jewellery maker Titan Company missed analysts' expectations on topline and bottomline front but margin was ahead of estimates. Profit grew by 23.5 percent year-on-year to Rs 180.7 crore in the quarter ended September 2016, driven by jewellery margin.
Revenue during the quarter fell 0.2 percent to Rs 2,675.7 crore on yearly basis, impacted by degrowth in watch business and muted growth in jewellery segment.
EBITDA (earnings before interest, tax, depreciation and amortisation) surged 36.8 percent to Rs 276.3 crore and margin expanded by 280 basis points to 10.3 percent compared with year-ago period.
According to analysts polled by CNBC-TV18, profit was estimated at Rs 198 crore on revenue of Rs 3,130 crore and EBITDA at Rs 286 crore with margin at 9 percent for the quarter.
"All retail channels grew. The festive season has commenced very well. For the Dussehra to Diwali festive period, Tanishq registered a growth of 39 percent over last year. In watches, for the same period, World of Titan stores grew by 14 percent and Helios stores by 11 in retail sales," Bhaskar Bhat, managing director said.
Revenue from its jewellery business, which contributed 74 percent to total sales, increased 0.2 percent year-on-year to Rs 1,987.5 crore with EBIT growing sharply by 81.1 percent to Rs 218.2 crore in Q2.
Performance of the diamond studded jewellery segment was much better that plain gold segment, Titan said, adding the watches division continues to exhibit a decent performance in the domestic market but the overall business declined due to lack of growth in some of its international markets as well as service business which went through restructuring.
Watches segment during the quarter showed a 5.2 percent degrowth at Rs 523.7 crore with EBIT falling 23 percent to Rs 64.3 crore compared to year-ago period.
At 14:51 hours IST, the stock was quoting at Rs 370.00, down Rs 6.65, or 1.77 percent on the BSE.
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