Titan profit jumps 96.84%, revenue up 42% in June quarter
Bengaluru: Titan Co. Ltd’s June quarter net profit almost doubled, helped by a significant jump in jewellery demand that more than offset subdued sales of the company’s watches and eyewear segments.
Net profit increased to Rs237.97 crore in the three months ending 30 June, 2017, from Rs120.89 crore a year ago, the company said on Thursday. Revenue rose 42% to Rs4,049.57 crore from Rs2,840.56 crore a year ago, Titan said in a BSE filing.
Sales of jewellery, retailed mainly under the brand name Tanishq, increased 57.33% to Rs3,352.21 crore in the quarter.
“Our jewellery business has delivered a stellar performance in the first quarter due to a combination of one of the best Akshaya Tritiya sales, a very successful gold exchange programme as well as an element of advancement of sales in June 2017 in anticipation of higher GST rates,” Titan’s managing director Bhaskar Bhat said in a statement.
GST, or the goods and services tax, came into force on 1 July.
Titan’s revenue from the watches segment grew only 2.4% annually while sales at its eyewear segment declined by a marginal 0.1% during the first quarter.
In early July, the company warned that its watches segment had been hit because it deferred some customer promotions due to the GST implementation. Titan also said the impact of higher tax rates on that part of its business was still uncertain.
“The performance of our eyewear business has been adversely impacted due to a slowdown in the sunglass category,” Bhat added in the statement on Thursday.
Titan added 31 stores across all its segments in the quarter, taking its total store count to 1,397 as of 30 June.
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