November 09, 2018

Titan Company reports a growth of 26 percent in Q2 income

Titan Company announced an impressive growth in income of 26 percent for the second quarter. The income from operations in the second quarter, July to September 2018, was Rs4,353 crore, against last year's income of Rs3,439 crore during the same period. The income for April to September 2018, the first half of this financial year, stands at Rs8,622 crore, registering a growth of 16 percent over last year.

The standalone PBT for Q2 is Rs446 crore, against Rs425 crore last year, recording a growth of 5 percent. The growth in the profit before tax for the quarter was muted due to provision made to the tune of Rs29 crore for investments made as part of treasury operations in inter-corporate deposits in the IL&FS Group and certain one-time franchisee compensations on store takeover in the jewellery segment.

The jewellery business had a good quarter following a subdued first quarter and recorded an income of Rs3,582 crore as compared to Rs2,788 crore last year. The jewellery business grew by 29 percent over last year in Q2. The income from the watches business recorded healthy growth too for the quarter at Rs676 crore against Rs576 crore in the previous year, a growth of 17 percent.

The jewellery division continues to gain market share and the watch business is seeing very good volume growth as well. The eyewear business grew well, by 19 percent in the quarter, recording an income of Rs120 crore as against RsI0l crore last year. Other segments of the company comprising accessories grew by 24 percent in Q2, recording an income of Rs33 crore. The previous year income for this segment in Q2 was Rs27 crore.

The company's retail chain stands at 1,540 stores, as on September 30, 2018, with a retail area crossing 1.9 million sqft nationally for all its brands.

Bhaskar Bhat, managing director of the company, stated that "The company has done well across all its businesses in the second quarter, delivering 26 percent growth over last year. The jewellery business picked up this quarter after a soft first quarter and the watches business had one of its best quarters with extremely healthy growth in bottom line for the first half. The eyewear business has picked up too with our investments in brand building showing results now."