Titan is comfortable with the company’s debt levels, affirming a robust and well-balanced financial stance.
The company has a long-term debt of approximately Rs 3,000 crore, primarily associated with the acquisition of Caratlane.
The non-convertible debentures (NCDs) we issued have terms of 18 months and 24 months, and “we plan to repay them within these timelines.” the management said in a post-earnings conference call.
Additionally, the company’s working capital loan is nearly equivalent to or slightly more than the cash reserves they hold. This balanced approach is part of the company’s prudent treasury management strategy, the management noted.
The company’s cash reserves exceed Rs 3000 crore, and equity stands at over Rs 13,000 to Rs 14,000 crore.
Read more: Titan Q4 results: Net profit rises 7% to Rs 786 crore, firm declares Rs 11 dividend
“We are comfortable with the current level of debt and have no plans to increase it further. Our treasury operations involve optimizing between gold loans, spot purchases, and bullion sales, ensuring flexibility and responsiveness to market dynamics.” the management said.
Titan Company on May 3 reported a standalone net profit of Rs 786 crore for the March quarter, a growth of 7 percent from Rs 734 crore in the year-ago period.
The jeweller and watchmaker's revenue came in at Rs 10,047 crore, rising 17 percent from Rs 8,553 crore in the year-ago quarter, the company said in a regulatory filing.
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