August 03, 2018

Titan Company's profits grow by 31.4 percent in Q1

The first quarter of FY 2018-19 was an extremely good quarter for Titan Company. The company reported a growth of 31.4 percent in profit before tax for the quarter. The sales income grew from Rs4,002 crore last year to Rs4,269 crore in Q1. The profit before tax for the same period grew from Rs371 crore to Rs487 crore.

The jewellery division recorded an income growth of 5.6 percent in the first quarter. The income from this division in Q1 was Rs3,572 crore as against Rs3,381 crore last year. The watches business grew from Rs517 crore in Q1 last year to Rs594 crore this year, recording a growth of 14.9 percent, powered by excellent growth in brand Titan. The company's eyewear business grew by 16.4 percent to Rs132 crore for Q1 this year. The company's other businesses comprising accessories, fragrances and sarees grew by 31.5 percent to Rs26 crore this year.

All these are standalone figures. The consolidated income and PBT for Q1 of the company were Rs4,407 crore and Rs467 crore respectively.

Retail expansion continued with a net addition of 27 stores across all its businesses in the first quarter, ending the period with a retail area of over 1.95mn sq. ft. nationally. The company's retail chain is 1,520 stores strong, as on June 30, 2018, and is expanding with growth plans in place for all its retail businesses - watches, jewellery and eyewear.

Bhaskar Bhat, managing director, Titan Company, stated that, "This has been a great quarter for us recording a growth of over 31 percent in PBT. All our core businesses have shown a healthy growth in profit in addition to market share gains. The modern retail formats for our watches business have recorded good growth. The jewellery industry went through a soft patch in the first quarter with decline in imports of gold by 39 percent. Despite the single digit revenue growth of our jewellery business in Q1, the profits grew by a healthy 16 percent. The company has put together plans to stimulate demand for all its product categories through innovative advertising campaigns and new product launches in the coming quarters."