The company's board approved corporate guarantees worth Rs 906 crore to various banks on behalf of wholly-owned subsidiary, Titan Commodity Trading.
The corporate guarantees are provided by the company to guarantee funding limits to be availed by Titan Commodity upto Rs 906 crore from various banks. These guarantees are against overall limits being availed by Titan Commodity primarily required for issuing bank guarantees to Multi Commodity Exchange (MCX) against margin and for meeting other working capital requirements. The guarantees will create contingent liability on the listed entity.Shares of Titan Company were up 0.61% at Rs 1552.45.
Titan Company is engaged in making and selling watches, jewellery, eyewear and others. The company's retail chain (including CaratLane) stands at 1,832 stores, as on 30 September 2020 with a retail area crossing 2.4 million sq ft for all its brands covering 290 towns.
On a standalone basis, the company's net profit declined 37.8% to Rs 199 crore on 11% fall in net sales to Rs 3892 crore in Q2 September 2020 over Q2 September 2019.
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