November 03, 2017
Titan Company reports growth of 73.8 percent in quarter two profits
Titan Company announced an exceptional growth in profits while reporting a growth of 28.9 percent in income in the second quarter. The income from operations in the second quater, July to September 2017, was Rs3,378 crore, against last year's income of Rs2,620 crore during the same period. The income for April to September 2017, the first half of this financial year, stands at Rs7,322 crore, registering a growth of 35.8 percent over last year.
The net profit for Q2 is Rs.305 crore, against Rs.178 crore last year, recording a growth of 70.9 percent. The net profit for the six months ended September 2017 is Rs572 crore. The profit before tax is Rs424 crore for Q2, a growth of 73.8 percent and Rs795 crore for the first half, a growth of 89.1 percent.
The jewellery business had another good quarter, following an extremely encouraging first quarter and recorded an income of Rs2,710 crore as compared to Rs1,987 crore last year. The jewellery business grew 37 percent over last year in Q2. The income from the watches business for the quarter was Rs570 crore against Rs523 crore in the previous year, a growth of 8.8 percent. The jewellery division continues to gain market share and watch business is seeing very good volume growth as well. The eyewear business grew 3.5 percent in the quarter, recording an income of Rs98 crore as against Rs95 crore last year. Other segment of the company, comprising accessories, grew 53 percent in Q2, recording an income of Rs26 crore. The last year income for this segment in Q2 was Rs17 crore.
The Titan Company retail chain stands at 1,415 stores, as on September 30, 2017, with a retail area crossing 1.8 million sq ft nationally for all its brands. The eyewear business closed down unprofitable locations even as it opened 26 new stores in the six months. The jewellery business has almost completed conversion of 19 of the erstwhile Goldplus stores into Tanishq. This move has yielded greater visibility and profits for the Company.
Bhaskar Bhat, managing director, Titan Company, stated, “Our jewellery business was impacted by the new PMLA regulations at the beginning of the quarter but the roll back, just before the festive season provided a boost to the business. The watches business also witnessed growth across most channels with the festive season build-up appearing very encouraging. However, the slowdown in international markets continued. The sunglass activation did well. Driven by the performance of all divisions, led by jewellery, the profit growth of 74 percent is very heartening. We are also happy that our fragrances brand Skinn now leads as the number 1 brand in several modern retail formats.”