Titan posts lower-than-expected net profit for Q1: Key takeaways

Titan Company reported a lower-than-expected 6.17 per cent year-on-year (YoY) growth in standalone profit at Rs 370.73 crore for the quarter ended June 30. Analysts in an ETNOW poll had projected Rs 398 crore profit for the quarter.

The company’s standalone total income increased 14.72 per cent to Rs 4,995.64 crore over Rs 4,354.52 crore in the same period last year.

Here are the key takeaways:


Jewellery division logs moderate growth

The jewellery division recorded an income growth of 13.3 per cent in the first quarter to Rs 4,047 crore from Rs 3,572 crore reported for last year. Growth in the jewellery segment was adversely impacted by high gold prices, especially during June, 2019.

Watches business grows 20 per cent

The watches business grew from Rs 594 crore in Q1 last year to Rs 715 crore this year, recording a growth of 20.4 per cent, powered by excellent growth in Titan brand.

Eyewear business logs moderate growth

The company’s eyewear business grew 13.1 per cent to Rs 149 crore in Q1.

Other businesses log robust growth

Other businesses comprising accessories, fragrances and sarees grew 37.9 per cent to Rs 36 crore.

Retail expansion continues

Retail expansion continued with a net addition of 45 stores across all its businesses in the first quarter, ending the period with a retail area of over 2.1 million sq ft nationally. The company's retail chain is 1640 stores strong, as on 30th June 2019 .

Lower consumption hurts

Bhaskar Bhat, Managing Director, Titan, said the macro-economic environment coupled with lower consumption have impacted some of our businesses. “The profit growth for the company appears subdued due to investments made in biennial overseas conferences for our business associates across all divisions as well as the impact of wage settlement with our unionized employees that was cordially concluded in this quarter,” he said.