Q2 earnings: Titan’s consolidated profit up 8.34% at ₹301.11 crore
Titan’s total income stood at ₹4,595.13 crore during September quarter, up from ₹3,603.01 crore in the same period a year ago
Bengaluru: Watches and accessories company Titan Co Ltd reported an 8.34% growth in consolidated profit while total revenue jumped significantly during the July-September quarter, led by sales growth in all key product segments.
But the Tata group company’s standalone net profit growth rate for the quarter was a muted 5% on a year-ago basis. Titan listed two reasons for that subdued growth rate - an ₹29 crore provision for investments it made as part of Treasury operations in inter-corporate deposits in the IL&FS group, and certain one-time franchisee compensations due to store takeovers in the jewellery segment.
In June, Infrastructure Leasing and Financial Services Ltd (IL&FS) group’s transport arm, IL&FS Transportation Networks Ltd (ITNL), delayed repayment of ₹450 crore of inter-corporate deposits from the Small Industries Development Bank of India (Sidbi), triggering a ratings downgrade from Icra and CARE on ITNL’s debt papers. IL&FS group and units subsequently defaulted on several other payment obligations.
Consolidated net profit at Titan was ₹301.11 crore in the second quarter, compared with ₹277.93 crore last year. Total income stood at ₹4,595.13 crore during the quarter, up from ₹3,603.01 crore in the same quarter a year ago.
Revenue and profit growth were led by Titan’s largest segment, jewellery, sold mainly under the Tanishq brand. Income from the jewellery segment grew 29.02% to ₹3,645.07 crore on an annual basis.
“The company has done well across all its businesses in the second quarter, delivering 26% 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 an 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,” Titan’s managing director Bhaskar Bhat said in a statement filed with the BSE on Friday.