Titan posts 48% yoy rise in Q4 PAT to Rs529cr, top-line front robust led by strong performance in jewellery and eyewear biz

Titan Company recorded a 48% yoy rise in its net profit for the quarter ending March 2021 (Q1FY21) to Rs529cr. The Tata Group-backed company's revenue was at Rs7,135cr for the quarter under review increasing by 61% yoy.

In its audit report, Titan highlighted that the company continued to do well in Q4 of FY 2020-21 with strong revenue growth both in the Jewellery and the Eyewear divisions and with the Watches division recovering fully. The total income for the quarter was Rs7,169cr, including the sale of gold bullion to the extent of Rs. 25 crores, compared to the income of Rs4,469cr for the same quarter in the previous year. The growth in total income excluding bullion sale was 60%.

Further, Titan pointed that the  Jewellery division ran a diamond-studded promotion in the quarter and that led to a good recovery of the studded segment of the business. However the studded ratio continued to lag the previous year and with gold coins sales continuing to remain very high, margins in the Jewellery business continued to be under pressure. The jewellery division recorded an income of Rs. 6,397 crores for the quarter (excluding gold bullion sales) as compared to Rs. 3,754 crores last year. The Watches and wearables business recovered well in the quarter to record an income of Rs. 555 crores against Rs. 557 crores in the previous year. The Eyewear business also improved with revenues growing by 18% in the quarter, recording an income of Rs. 127 crores as against Rs. 108 crores last year.

Meanwhile, the recovery in the other segments of the Company comprising Indian dress wear and accessories was still slow and these divisions
recorded an income of Rs. 35 crores compared to Rs. 42 crores in the previous year, a decline of 17%.

CK Venkataraman, Managing Director of Titan said, "The financial year ended March 2021 has indeed been a most testing one for the Company with the pandemic hitting its operations vary significantly, particularly in the first half of the financial year. But the bounce-back of the Company on the revenue front so quickly, led entirely by the complete support of our customers and the total dedication and innovative spirit of our employees and business associates, has been extremely gratifying. While the profits before tax and exceptional items for the year are lower than the previous year, mainly due to the impact of the pandemic on the business mix, the Company did exceptionally well on the Cost optimization program and Cash generation front. We have also become stronger in each of our business segments. We believe the experience of the past year will help the Company face future challenges even better."

Titan's retail chain stands at Rs1,909cr as of March 31, 2021, with retail are crossing 2.5 million sq. ft for all its brands covering 303 towns.

At around 11.27 am, Titan is trading at Rs1500.25 per piece down by Rs6.05 or 0.4% on Sensex.