Titan Company reopens 83% stores in Q1

Titan Company said that after suffering complete loss of sales in April due to lockdown, the company has started reopening the stores, from 6th May onwards in the non-containment areas.

The announcement was made after market hours yesterday, 7 July 2020. Shares of Titan Company settled 0.2% higher at Rs 1,016 yesterday.

After suffering complete loss of sales in April due to lockdown, Titan Company started reopening the stores, primarily high street stores, from 6th May onwards in the non-containment areas. As at the end of June 2020, the company has re-opened around 83% of its stores across all businesses. Almost all manufacturing operations have commenced operations.

The company extended financial support to its franchisees and vendors, particularly by providing soft loans at extremely low interest rates. The company is in a comfortable liquidity position due to adequate banking limits being in place and ability to issue Commercial Papers. As on 30th June 2020, the company is in a net cash surplus status thanks largely to sale of excess inventory in the form of gold to the commodity exchange and certain vendors. Since the markets and channels are opening up in a phased manner, the company kept the launches very tight and postponed the launch of collections to Q2.

Titan Company said said jewellery revenue in May and June months were at slightly below 20% and around 70% compared to the corresponding months of the previous year. The division also sold gold in the bullion market worth Rs 610 crore at market rates to optimize the inventory levels. The division has re-opened around 95% of its Tanishq stores till date. However, operations of stores tend to get disrupted as and when local governments enforce lockdowns.

In Watches & Wearables segment, revenue in May and June months were at 5% and marginally over 20% compared to the corresponding months of the previous year.

In Eye Wear segment, revenue in May and June months were at 15% and 35% compared to the corresponding months of the previous year.

In Other Businesses segment, it was a slow recovery for the 'Ethnic women wear' business with the recovery rate being around 40%, though the rate seemed to be getting better towards the end of the quarter.

Titan Company is engaged in offering watches, jewelry and others. The company's segments include watches, jewellery, eyewear and others.

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