Bengaluru: Watches and accessories maker Titan Co. Ltd reported a 21.26% jump in net profit to Rs281.61 crore for the fiscal third quarter as all three key business segments were buoyed by festive season sales.
Revenue rose 7.40% to Rs4,296.16 crore from the year ago for the October-December quarter, the company said in a filing with the BSE on Thursday. Net profit increased to Rs281.61 crore from Rs232.23 crore in the same period last year.
“The third quarter was an eventful quarter with suspension of the applicability of PMLA, favourable to our jewellery business and reduction of GST rates for watches, sunglasses and optical frames. All our businesses recorded good sales in the festival season," said Bhaskar Bhat, Titan’s managing director, in a statement.
The government had initially issued a notification under the Prevention of Money Laundering Act (PMLA) that any sale of gold above Rs50,000 required customers to furnish their PAN (Permanent Account Number) or Aadhaar details to the jeweller. But on 6 October it rolled back this notification and there is no need to furnish such details anymore. That lent a boost to the jewellery industry.
Sales at Titan’s jewellery business segment, retailed mainly under the Tanishq brand name, were up 8% at Rs3,569.86 crore. That growth rate is slower on a sequential basis, though, with the segment having grown 36.9% in the July-September quarter.
Titan’s watches segment earned revenue of Rs535.46 crore in the third quarter, a growth of 4.47% over the same period last year. But the company said those numbers were not comparable as its income included excise duty last year as compared with the goods and services tax (GST) this year.
Revenue at its eyewear division—retailed under the Titan EyePlus brand—declined marginally to Rs90.37 crore during the quarter from Rs90.65 crore a year ago.
“It was an extraordinary quarter with the company registering record levels of profits. Many new products were launched by all our brands during the quarter. Our effort continues to be one of generating demand through new product introductions and network expansion," Bhat said.
Titan opened 166 new stores in the nine months to December, taking its store count to 1,439 as of 31 December.
On Thursday, Titan shares closed 4.34% lower at Rs831.30 on BSE, while the Sensex ended 0.16% down at 36,906.66 points.