February 01, 2018
Titan Company registered a healthy growth of 22.1 percent in profits for Q3
Bengaluru: Titan Company reported an extremely healthy growth of 22.1 percent in profit before tax for the quarter ending December 2017. Sales income during the same period grew by 6.1 percent while income for the nine-month period ending December 2017 grew by 23.3 percent. The overall standalone income from operations in the third quarter, October to December 2017, was Rs4,137 crore, as compared to last year’s income of Rs3,867 crore during the same period. The income for April to December 2017, the nine-month period, stands at Rs11,483 crore. The consolidated income for the same nine-month period was Rs11,793 crore.
The profit before tax for Q3, October to December 2017, was Rs423 crore. The net profit for the same period was Rs308 crore and Rs881 crore for the nine-months ended December 2017. The profit before tax for the nine-month period ending December 2017 grew by 58.9 percent, to Rs1,219 crore.
The income from watches was Rs532 crore in Q3, a growth of 4.7 percent over last year. The income figures are not comparable as the income last year included excise duty as compared to the income being after GST this year and hence the growth appears subdued. The jewellery business recorded a growth of 7.4 percent in Q3 over last year and had an income of Rs3,497 crore this year in Q3 as compared to Rs3,255 crore last year. For the nine-month ended December 2017, the jewellery business recorded a growth of 28.7 percent. The eyewear business remained flat in income, in Q3, at Rs90 crore. Other businesses of the company registered a growth of 26.2 percent in Q3, at Rs22 crore. The nine-month income for this segment grew by 41.3 percent to Rs68 crore.
The Titan Company (TCL) retail chain is 1,439 stores strong, as on December 31, 2017, with the retail area crossing 1.87 million sq. ft. nationally for all its brands. A total of 166 stores were added by TCL brands in the nine month period till December 2017.
Bhaskar Bhat, managing director, TCL, stated, “The third quarter was an eventful quarter with suspension of the applicability of Prevention of Money Laundering Act (PMLA), favourable to our jewellery business and reduction of GST rates for watches, sunglasses and optical frames. All our businesses recorded good sales in the festival season. It was an extraordinary quarter with the company registering record levels of profits. Many new products were launched by all our brands during the quarter. Our effort continues to be one of generating demand through new product introductions and network expansion.”