May 10, 2018

Titan Company's profit grows 52.6 percent in FY 2017-18

For Titan Company, the FY 2107-18 was a remarkable year in terms of overall business performance. The financial year 2017-18 recorded a topline growth of 20.5 percent on a standalone basis. Titan Company reported an income of Rs15,655 crore for the year ended March 2018. This performance came in the backdrop of a changing environment and regulatory moves like GST implementation. Income for Q4 stood at Rs3,916 crore against Rs3,538 crore last year, registering a growth of 10.72 percent.

Standalone profit before tax for the year 2017-18 was very encouraging and grew by 52.0 percent to Rs1,571 crore. This is after extraordinary items of Rs91 crore including impairment for investment in Favre Leuba amounting to Rs75 crore. The standalone net profit for the year is Rs1,163 crore, a growth of 52.6 percent.

The jewellery business of the company recorded a sale of Rs13,036 crore, on the back of a very successful diamond activation as well as excellent reception to the revised gold exchange policy by customers. The income from jewellery segment saw a growth of 24.3 percent in FY 2017-18. The year witnessed launch of many successful collections in jewellery as well as an effective wedding campaign. The watches business of the company recorded an income of Rs2,126 crore for FY 2017-18, registering a much higher growth than the past few years. The growth of 3.6 percent being reported, appears muted due to the effect of GST on top line. The key highlights of the year were encouraging growth in the modern large format stores and ecommerce, successful launch of new licensed brands as well as a resounding success to 'Reflex' Smart Band from Fastrack. The income from eyewear business was Rs415 crore. The year 2017-18 saw sales in eyewear almost flat over previous year as the sunglass business continued to face challenges in the new GST regime. Other businesses of the company comprising accessories, fragrances and sarees recorded a sale of Rs95 crore, a growth of 45.9 percent.

The year witnessed aggressive expansion of its retail network with a net addition of 114 stores by watches, jewellery and eyewear businesses. As on March 31, 2018, the company had 1,480 stores, with over 1.9 million sq. ft. of retail space.

Bhaskar Bhat, managing director, Titan company, said, "The company achieved excellent topline and bottom line growth in the jewellery and watches business. The jewellery business scaled new heights in terms of revenue growth and profitability. The business gained from tailwinds provided by regulatory developments like GST. The watches business had a great year too with the recrafting strategy resulting in the highest topline growth in recent years, a jump in margins and the highest ever profit. The eyewear business went through a tough period, especially in the sunglass segment. I am also proud of the fact that through our CSR programme we have made a difference to the lives of three lakh and fifty thousand Indians. Many steps are being taken to prepare the company for the future and set a foundation for healthy growth in the years to come."

Considering the performance of the company, a dividend of Rs3.75 per share (375 percent) was announced after the board meeting held on May 10, 2018.