Titan Company drops in volatile trade after announcing Q1 results

Titan Company fell 2.13% to Rs 414.30 at 15:11 IST on BSE after net profit declined 16.34% to Rs 126.69 crore on 3.15% rise in total income to Rs 2812.16 crore in Q1 June 2016 over Q1 June 2015.

On BSE, so far 3 lakh shares were traded in the counter, compared with average daily volume of 1.03 lakh shares in the past one quarter. The stock saw high intraday volatility after the company's Q1 results hit the market in late trade. The stock rose as much as 0.83% at the day's high of Rs 426.85 so far during the day. The stock fell as much as 6.44% at the day's low of Rs 396 so far during the day. The stock hit a 52-week high of Rs 434.95 on 15 July 2016. The stock hit a 52-week low of Rs 303 on 29 February 2016. The stock had outperformed the market over the past one month till 2 August 2016, rising 4.43% compared with 3.08% rise in the Sensex. The scrip also outperformed the market in past one quarter, gaining 15.48% as against Sensex's 10% rise.

The large-cap company has an equity capital of Rs 88.78 crore. Face value per share is Re 1.

Titan Company's bottom line in Q1 June 2016 was adversely impacted by a one-time exceptional expenditure of Rs 96.88 crore pertaining to voluntary retirement scheme for its employees announced during the quarter. The company's PBT (profit before tax) before extraordinary items rose 32.4% to Rs 270.64 crore in Q1 June 2016 over Q1 June 2015.

Titan Company said that the income from watches business rose 1.4% to Rs 491.72 crore in Q1 June 2016 over Q1 June 2015. Revenue from jewellery business rose 3.2% to Rs 2138.32 crore in Q1 June 2016 over Q1 June 2015. Revenue from the eyewear business rose 2.7% to Rs 109.87 crore in Q1 June 2016 over Q1 June 2015. Revenue from other businesses, including precision engineering business rose 36.2% to Rs 63.92 crore in Q1 June 2016 over Q1 June 2015.

Titan Company said that the company has put together plans to stimulate demand for all its product categories through innovative advertising campaigns and new product launches in the coming quarters. The company further said in its Q1 June 2016 results press release that the expansion of retail stores continued with a net addition of 11 stores across all its businesses in Q1 June 2016.

Commenting on the first quarter results, Bhaskar Bhat, Managing Director, Titan Company said that the Q1 June 2016 results have been good for the company from a bottom line perspective. The final number though, has been impacted adversely by an exceptional item, the benefits of which will accrue over the coming years, Bhat said. The wedding season in Q1 June 2016 was poor which impacted sales growth in both watches and jewellery, Bhat said.

Titan Company's main business lines are watches, jewellery and eyewear.

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