High gold prices hit Titan’s jewellery sales in Q2; key takeaways

Titan Company on Tuesday posted a 1.83 per cent year-on-year rise in standalone net profit at Rs 320.16 crore for the September quarter, failing to meet Street estimates.

Analysts in an ET NOW had projected a net of Rs 358 crore.

Here are key takeaways from Titan’s September’s quarter earnings:


Jewellery business subdued
The jewellery business had a subdued quarter due to high gold prices, recording an income of Rs 3,528 crore compared with Rs 3,582 crore last year, a fall of 1.5 per cent.

For the half year, the company said jewellery division continues to gain market share registering a growth of 5.9 per cent in revenue.

Other segments grow
The watches business recorded an income of Rs 719 crore against Rs 676 crore in the previous year, registering a growth of 6.4 per cent. The Eyewear business grew 28.5 per cent YoY in the quarter, recording an income of Rs 154 crore as against Rs 120 crore last year.

Other segments of the company comprising accessories, fragrances and Indian dress wear grew 33.2 per cent in Q2 recording an income of Rs 44 crore. The previous year income for this segment in Q2 was Rs 33 crore.

Tax impact dents profit
The company recognised Rs 16.83 crore in deferred tax this quarter due to migration to the newly revised corporate tax rate. However, the current tax liability came down by 30 per cent compared with the September quarter last year.