Titan net surges 82.4%

Diversified consumer product conglomerate, Titan Industries has posted a 82.4 per cent rise in its net profit to Rs 137.5 crore in the third quarter of the current financial year on the back of sound growth in the jewellery segment. Total income of the company rose by 46.9 per cent to Rs 1967.9 crore during this period as compared with Rs 1339.7 crore posted in the same period last year.

Operating profit of the company grew 89 per cent to Rs 186.6 crore in this period compared to Rs 98.3 crore last year. “Following the sound performance in the first half, backed by retail sales, all our businesses outperformed in the third quarter due to excellent festive season demand,” said Bhaskar Bhat, Managing Director.

He said the overall growth and improvement in performance has been triggered by good retail growth across all its brands and retail chains.

The company, which has business interest across watches, jewelery and eye wear, has posted sound growth in watches and jewelery verticals along with narrowing of losses in the precision engineering business. While revenue from the jewelery vertical rose by 49.7 per cent to Rs 1578.8 crore in the third quarter, watches business increased by 34 per cent to Rs 325.1 crore during this period.

“Despite a 19 per cent increase in gold price this year, Tanishq has recorded high sales growth in both plain and studded jewelery,” Bhat said. Similarly, other business comprising eye wear and precision wear saw a 37.3 per cent rise in revenue to Rs 55.2 crore in this period. Even the operating losses in this segment has narrowed to Rs 5.1 crore, down by 14 per cent from the corresponding period last year.

On the total retail outlets, the company has reached a total of 624 outlets by December covering an area of 0.77 million sq ft. Shares of Titan Industries closed 2.71 per cent down at Rs 3465.40 in the BSE on Friday.