Titan net jumps 66% to to Rs 568 crore in March quarter on low base

Titan on Thursday reported a 66 per cent year-on-year increase in consolidated net profit to Rs 568 crore for the quarter ended March 31, 2021 (Q4).

 

This came on the back of a low base, analysts tracking the company said.

 

Bloomberg consensus estimates had pegged Q4 net profit for the Bengaluru-based company at Rs 549 crore.

 

Revenue for the quarter rose 59 per cent over the previous year to Rs 7,494 crore, against a forecast of Rs 7,516.8 crore by a poll of Bloomberg analysts. Sales of its key jewellery segment, accounting for 88 per cent of its total revenue, increased 71 per cent year-on-year to Rs 6,678 crore.

 

Operating profit rose 33 per cent year-on-year to Rs 817 crore, while operating margins contracted 210 basis points in Q4 to 10.9 per cent, against 13 per cent a year ago. Analysts attributed this decline to pressure on jewellery division margins.

 

“The financial year ended March 2021 has been a testing one for the company with the pandemic hitting operations significantly, particularly in the first half of the financial year,” said Titan’s Managing Director C K Venkataraman.

 

He said that the company had accelerated cost optimisation and cash generation to tide over the crisis.