Managing Director CK Venkataraman said the recovery in business, particularly in the jewellery business, was encouraging. "We expect to get back to normalcy by the fourth quarter of this year," he said.
Jewellery-to-eyewear maker Titan Company reported a net standalone loss of Rs 270 crore for the quarter ended June 2020 as COVID-19 pandemic hit business. The loss was higher than a CNBC-TV18 poll estimate of Rs 175 crore.
The company reported a profit of Rs 371 crore in the year-ago period.
Standalone revenue during the quarter declined 62.3 percent year-on-year to Rs 1,862 crore compared to the corresponding period last fiscal.
"The disruption caused by the COVID-19 pandemic in India affected the performance of Titan Company severely with retail outlets closed for a major part of the quarter, resulting in a decline in income of 62 percent for the first quarter of the financial year 2020-21," the company said in its BSE filing.
Revenues included the sale of bullion worth Rs 601 crore done to reduce inventory given the low level of sales due to the disruptions in activity.
Managing Director CK Venkataraman said the recovery in business, particularly in the jewellery business, was encouraging. "We expect to get back to normalcy by the fourth quarter of this year," he said.
Titan said the lockdowns impacted its operations significantly April and May as most stores were forced to shut down. "While stores started opening in May, post Unlock 1.0, even as at end of June 2020, only 83 percent of all the stores opened and even for stores that opened, many of them were not operating for all days," it said.
The recovery rate of revenue started improving slowly and as of June, it was 21 percent for the watches and wearables division, 77 percent for the jewellery division and 25 percent for the eyewear division, said the company.
On the segment front, the impact of the lockdown resulted in the jewellery division recording an income of Rs 1,783 crore for the quarter as compared to Rs 4,047 crore last year, a decline of 56 percent, Titan said.
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The watches business was impacted far more and recorded an income of Rs 75 crore against Rs 715 crore the previous year, a decline of 90 percent, and the eyewear business also was hit severely as the watch business with revenues declining by 80 percent in the quarter, recording an income of Rs 30 crore in Q1FY21.
The company's retail chain stood at 1,736 stores, as on June 2020 with a retail area crossing 2.2 million square feet nationally for all its brands.