Titan Company on February 3 reported a 135.6 percent year-on-year growth in net profit to Rs 987 crore for the quarter ended December, sharply beating analysts' estimate of Rs 847 crore.
The consumer discretionary company reported a 30.6 percent on-year growth in revenue from operations to Rs 9,515 crore, which was also above Street's expectations of 9,337 crore.
"The festive purchases in the quarter have driven Titan's strong growth in all businesses of the company and the quarter has turned out to be one of the best quarters in terms of growth and profitability," Managing Director CK Venkataraman said in a press statement.
Besides the festive period, Titan also benefitted from the record wedding season in the country in the previous quarter as the reopening of the economy post the second wave of the pandemic allowed people to undertake weddings that were delayed.
The jewellery business of the company jumped 37 percent on-year to Rs 8,563 crore in the reported quarter. The watches and wearables business of Titan posted a 29 percent on-year growth in sales to Rs 708 crore, while the eyewear operations grew 26 percent.
"While the onset of Covid wave 3 has slowed down the strong momentum, the company is hopeful of ending the year on a positive note," Venkataraman said.
The operating performance of the company was as strong as the topline and bottomline show. Operating profit in the reported quarter jumped 63 percent on-year to Rs 1,398 crore, which also beat Street's estimate.
Overall, Titan saw its operating margin expand 290 basis points on a year-on-year basis to 14.7 percent. The jewellery division led the strong operating growth with a 67 percent rise in operating profit to Rs 1,260 crore in the reported quarter.
Shares of Titan were down 1.7 percent at Rs 2,421.9 on the National Stock Exchange.
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