Titan Company Ltd registers a revenue Growth of 3.6% in Q1.

Posted by: at 8/03/2016 03:16:00 am

India 03 August 2016:
 Sales income for Titan Company in Q1 grew by 3.6%. Retail sales in the first quarter were adversely impacted by fewer wedding dotes and a significant impact on revenues in the jewellery industry due to high gold prices. The soles income grew from Rs.2686.76 crores last year to Rs.2782.50 crores in Q1. The profit after tax for the same period dropped by 16.3% to Rs.126.69 crores this year due to an exceptional item. the Voluntary Retirement Scheme announced for its employees during the quarter. The Company reported an expenditure of Rs.96.88 crores against this exceptional item and the entire amount has been accounted for in the quarter. The Company's PBT before extraordinary item stands at Rs.270.64 crores in Q1 as against Rs.204.41 crores during the some period lost year. registering o growth of 32.4% for the quarter. 

Titan Company Ltd registers a revenue Growth of 3.6% in Q1.

The Watches Business in Q1 this year recorded o growth of 1.4%. The income of Watches Business grew from Rs.485.17 crores to Rs.491.72 crores. The Jewellery income in Q1 was Rs.2138.32 crores as against Rs.2072.91 crores. a growth of 3.2%. The Company's Eyewear business grew by 2.7% from Rs.106.93 crores lost year to Rs.109.87 crores in Q1 this year. The Company's other businesses including Precision Engineering grew by a healthy 36.2%. to Rs.63.92 crores this year. 

The Company has put together plans to stimulate demand for all its product categories through innovative advertising campaigns and new product launches in the coming quarters. 

Retail expansion continued with a net addition of 11 stores across all its businesses in the first quarter, ending the period with a retail area of over 1.73 mn sq.f t nationclly. The Company's retail chain is 1293 stores strong, as on 30th june 2016 and is expanding with growth plans in place for all its retail businesses - watches. jewellery and eyewear. 

After the satisfactory completion of the accounting and legal due diligence of CorotLane Trading Private Limited CTP14 the Company has paid Rs 357cr to acquire around 62% stoke in CTPL. 

Mr. Bhoskor Bhat. Managing Director of the Company stated that "The first quarter this year has been good for the Company from a bottom line perspective, the final number though, has been impacted adversely by on exceptional item, the benefits of which will accrue over the coming years. Growth has been muted and our jewellery business has grown despite a reported drop of 50% in gold imports during the first half of this calendar year. The watches business introduced a new sub-brand octane and the Jewellery business launched Niloufer which have received a good consumer response. The wedding season in Q1 was poor which impacted sales growth in both watches and jewellery. All our brands are working on plans to stimulate demand in the coming quarter. " 
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