Titan Q3 profit rises 13% YoY: Key takeaways

Titan Company on Tuesday reported a 13 per cent growth in profit largely due to good festival sales during October-November. However, the company noted that footfall across its stores fell during December.

The revenue growth was led by the jewellery segment, while growth in other segments were muted during the quarter.

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


Profit meets estimates
Titan Company reported a 12.9 per cent year-on-year (YoY) rise in standalone profit at Rs 469.95 crore for the December quarter, meeting analyst estimates of Rs 453 crore.

The company had reported Rs 416.23 crore profit in the same period last year. Sales for the quarter rose 8.40 per cent to Rs 6,105.96 crore from Rs 5,632.45 crore in the same quarter last.

Other operating revenue soars
Revenue from other operations, which excludes sales and services revenue, more than doubled to Rs 100.27 crore in Q3 from Rs 39.77 crore in the same quarter, year ago. That translates into a jump of 152 per cent.

Finance cost jumps three-fold
Finance cost jumped to Rs 40.49 crore, up 214 per cent from Rs 12.87 crore in December 2018 quarter. However, sequentially, this was steady as the company incurred finance cost of Rs 40.75 crore in the September quarter.

Watches, corporate revenue fall
Revenue from the watches segment fell 2.39 per cent to Rs 625.33 crore in Q3FY20 from Rs 640.66 crore in the year ago quarter. Revenue from the corporate segment fell drastically to Rs 9.23 crore from Rs 35.43 crore a year ago.

Eyewear sees tepid growth
Revenue from the jewellery segment, which includes Tanishq, was at Rs 5408.66 crore, up 10.59 per cent YoY from Rs 4,890.34 crore. Similarly, revenue from eyewear segment, which includes Titan EyePlus brand, was at Rs 133.30 crore, up 3 per cent YoY from Rs 129.49 crore.

Management commentary
CK Venkataraman, Managing Director of Titan said that the growth during the festival period of October and November was very encouraging. The company, though saw a drop in footfall across retail formats in December compared to the previous two months and hence the sales were muted, he explained.

“The retail growth for our jewellery business was healthy in Q3 on account of a good wedding season. Many new products are lined up for launch in the last quarter and we will continue to invest in our brands and delight our customers with fascinating products coupled with memorable advertising," Venkataraman said.