Titan Q1 results: Firm posts Rs 270 crore loss as lockdown dents sales

An ET Now poll of analysts had projected a net loss of Rs 127 crore for the company.

Titan Q1 results: Net loss at Rs 270 cr as lockdown dents sales
Titan Company on Monday reported a standalone net loss of Rs 270 crore in the quarter ended June 2020 against a profit of Rs 371 crore a year ago, hurt by Covid-19-induced lockdown.

The figure was significantly higher than analysts' expectations. An ET Now poll had projected a net loss of Rs 127 crore for the company.

Sales for the jewellery and watchmaker plunged to Rs 1,862 crore, from Rs 4,939 crore a year ago. This was also slightly lower than analyst projections of Rs 1,872 crore.

Revenue included sale of bullion worth Rs 601 crore done to reduce inventory given the low level of sales due to the disruption in activity, the company said.

It added that the sales were heavily affected due to lockdown. The recovery rate of revenue started improving slowly and as of June it was 21 per cent for the watches and wearables division, 77 per cent for the jewellery division and 25 per cent for the eyewear division.

The jewellery division recorded an income of Rs 1,783 crore for the quarter compared with Rs 4,047 crore last year, a decline of 56 per cent. The watches business was impacted far more and recorded an income of Rs 75 crores against Rs 715 crore in the previous year, a decline of 90 per cent.

The eyewear business was also impacted severely with revenues declining by 80 per cent in the quarter, recording an income of Rs 30 crore. Other segments of the company, comprising Indian dress wear and accessories, recorded an income of Rs 4 crore compared with Rs 36 crore.

"The severity of the disruption in business due to the pandemic impacted the company's performance resulting in an unprecedented loss for the company. The recovery in business, particularly in the jewellery business is encouraging and we expect to get back to normalcy by the fourth quarter of this year," said C K Venkataraman, Managing Director of the company.




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