India 4 November 2016: Titan Company Ltd reports a growth of 35% in Q2 profits. Titan Company Ltd announced an exceptional growth in profits while reporting a marginal decline of 0.1% in net income in the second quarter. The income from operations in the second quarter, July to September 2016, was Rs.2659.83 crores, against last year's income of Rs.2662.52 crores during the same period. The income for April to September 2016, the first half of this financial year, stands at Rs.5466.14 crores, registering a growth of 2.1% over last year.
The net profit for Q2 is Rs.180.76 crores, against Rs.146.35 crores last year, recording a growth of 23.5%. The net profit for the six months ended September 2016 is Rs307.45 crores after the exceptional item of Rs 99.86 crores.. The profit before tax and exceptional item is Rs.250.39 crores for Q2, a growth of 36.9% and Rs.521.03 crores for the first half, a growth of 34.5%. This was possible due to decent improvement in gross margin and the benefits of the cost control programme undertaken by the company.
The jewellery business had an extremely successful activation in the second quarter and recorded an income of Rs.1987.51 crores as compared to Rs.1982.72 crores last year. Performance of the diamond studded jewellery segment was much better than plain gold segment. The Watches division continues to exhibit a decent performance in the domestic market but the overall business declined due to lack of growth in some of its international markets as well as its service business which went through re-structuring. The income for the quarter was Rs.523.69 crores against Rs.552.45 crores in the previous year, a decline of 5.2%. The Eyewear business grew by 6.6% in the quarter, recording an income of Rs.95.19 crores as against Rs.89.33 crores last year. Other businesses of the Company comprising Precision Engineering, a B2B business and accessories grew by 20% in Q2. The performance of this segment was driven by an extremely encouraging growth of 23% in the PED business which has also built up a healthy order book. The combined income of these businesses was Rs.72.91 crores in Q2. Their last year income for Q2 was Rs.60.77 crores.
The Titan Company retail chain stands at 1316 stores, as on 30th September 2016 with a retail area crossing 1.75 million sq.ft. nationally for all its brands
Mr. Bhaskar Bhat, Managing Director of the Company stated that "This was an extremely good quarter for the Company with respect to profits. All businesses of the company recorded profits in the quarter. The Jewellery business had an extremely good studded jewellery activation and the Watches business launched its second smart watch, Juxt Pro. All our retail channels grew. The festive season has commenced very well. For the Dussehra to Diwali festive period, Tanishq registered a growth of 39% over last year. In watches, for the same period, our World of Titan sA)res grew by 14% and Helios stores by 11% in retail sales."