Titan eyes strong FY20 despite muted Q4: Key highlights

NEW DELHI: Watch-to-jewellery major Titan Company on Wednesday said that it has taken 100 per cent provision for inter-corporate deposits investments amounting to Rs 145 crore made in beleaguered IL&FS and impairment of investment in its Swiss subsidiary Favre Leuba. As a result, it posted an exceptional expense of Rs 70 crore for the quarter ended March 2019.

The company also reported 4.40 per cent year-on-year rise in standalone profit at Rs 294.60 crore in March quarter over Rs 282.10 crore in the same period last year.

Analysts in an ET NOW poll had projected a profit of Rs 400 crore for the quarter under review.


Revenue of the company jumped 19.30 per cent YoY to Rs 4672 crore.

Standalone EBIT margin of the company stood at 10.10 per cent in Q4FY19 over 11.30 per cent in Q4FY18. Consolidated EBIT margin declined to 9.40 per cent from 10.10 per cent during the same period.

Here are other key highlights from Titan's fourth quarter earnings:

Guidance: The company is aiming for around 20 per cent growth in FY20 despite muted outlook for the economy.

Retail space: Titan has 115 stores with a retail space of 1,30,000 square feet in FY19, on a net basis.

Dividend: The board has proposed a dividend of Rs 5 per equity share.

Segment-wise: The jewellery division recorded strong revenue growth of 21 per cent in Q4, on the back of each of the six pillars of the strategy fueling growth. EBIT margin stood at 12.8 per cent in Q4 over 13.80 per cent in the same quarter last year.

EBIT margin for eyewear segment declined 1.30 per cent during the quarter under review against a growth of 2.10 per cent in March quarter last year.

However, the watch segment witnessed a modest growth of 7 per cent in Q4 after recording strong revenue growth in first three quarters. EBIT margin was at 5.5 per cent impacted by lower gross margin due to product and channel mix and Ex Gratia provisions made in Q4 for employees. The figure stood at 8 per cent in Q4FY18.

Consolidated profit: On a consolidated basis, profit of the company increased to Rs 353.59 crore, up 12.23 per cent, against Rs 315.04 crore in the same quarter last year.