S Subramanian, CFO of Titan says gold jewellery segment is doing well and foresees positive growth from hereon.
S Subramaniam, CFO of Titan says the watches business is hit mostly owing to slackness in discretionary demand
During the quarter, EBITDA is likely to fall 21.3 percent at Rs 262 crore versus Rs 333 crore while EBITDA margins is seen at 9.2 percent against 9.3 percent (Y-o-Y).
The brokerage is confident that Titan will start reporting double-digit same-store-sales growth as Golden Harvest Scheme (GHS) contributions will be visible in second half of FY16. Goldman Sachs thinks Titan will show top quartile sales growth of 25 percent through 2018.
Lohchab is of the view that advertising and promotional spends will continue to rise due to increasing competition and lower demand.
The company will continue with its expansion plans irrespective of soft demand and plans to add one lakh square feet this year.
S Subramaniam, CFO of Titan Company says it had to stop the previous Golden Harvest Scheme because of the changes in the Companies Act. The new scheme will be compliant with New Companies Act, he adds. It will be very similar to the old one, except that the returns have to be lowered to levels mandated by the Companies Act.
Titan's net sales were at Rs 3,564.67 crore during Q2, 2014-15, up 55.66 per cent as against Rs 2,290.02 crore in the year-ago period, Titan said in BSE filing.
Total income from operations may grow 40.2 percent to Rs 3,265 crore from Rs 2,329 crore during the same period. Operating profit is seen rising 33.5 percent year-on-year to Rs 350 crore but margin may fall 50 basis points to 10.7 percent in the quarter gone by.