Titan Company posted a 48.2% jump in standalone net profit to Rs 529 crore on 60% rise in net sales to Rs 6,991 crore in Q4 FY21 over Q4 FY20.
The Tata Group Enterprise continued to do well in Q4 FY21 with strong revenue growth both in the Jewellery and the Eyewear divisions and with the Watches division recovering fully. The total income for the quarter was Rs 7,169 crore, including sale of gold bullion to the extent of Rs 25 crore, compared to the income of Rs 4,469 crores for the same quarter in the previous year. The growth in total income excluding bullion sale was 60%.
The Jewellery division ran a diamond studded promotion in the quarter and that led to good recovery of the studded segment of the business. However, the studded ratio continued to lag the previous year and with gold coins sales continuing to remain very high, margins in the Jewellery business continued to be under pressure. The jewellery division recorded a 70% jump in income to Rs 6,397 crore for Q4 FY21 (excluding gold bullion sales) as compared to Rs 3,754 crore in Q4 FY20.
CaratLane continued to do very well in both the online and offline channels and ended the quarter with a growth of 60% and profit before tax of Rs 10 crore. The revenue for the year to date was Rs 715 crore (growth of 15%) and the net profit was Rs 2 crore (previous year loss of Rs 27 crore).
The Watches and wearables business recovered well in the quarter to record an income of Rs 555 crore as against Rs 557 crore in the previous year. The Eyewear business also improved with revenues growing by 18% in the quarter, recording an income of Rs 127 crore as against Rs 108 crore last year.
The recovery in the other segments of the company comprising Indian dress wear and accessories was still slow and these divisions recorded an income of Rs 35 crore compared to Rs 42 crore in the previous year, a decline of 17%.
The strong revenue growth led the company to its profit before tax and exceptional items of Rs 702 crore, compared to Rs 516 crore in the previous year, a growth of 36% for the quarter.
The Jewellery division declared Earnings before interest and tax (EBIT) of Rs 703 crore for the quarter compared to Rs 534 crore in the previous year. The Watch division reported an EBIT of Rs. 46 crore for the quarter compared to Rs 72 crore in the previous year. The Eyewear division continued its remarkable transformation in the quarter with EBIT of Rs 23 crore compared to loss of Rs 2 crore in the previous year.
Of the principal subsidiaries of the company, Titan Engineering and Automation Ltd (TEAL) Aerospace business continued to get impacted severely due to the pandemic even though the Automation Solutions business performed well.
Titan posted a 42.2% fall in net profit to Rs 877 crore for the year ended 31 March 2021 (FY21) as compared to Rs 1517 crore registered in year ended 31 March 2020 (FY20). The total income for the year ending March 2021 was Rs 19,426 crore (excluding bullion sale of Rs. 1,357 crores), against the income of Rs 20,156 crore in the corresponding period last year, a decline of 4% compared to the previous year. The company recorded a profit of Rs 1,370 crore, before exceptional items and taxes, in the year ended 31 March 2021 compared to a profit before tax of Rs 2,105 crore in the previous year.
C K Venkataraman, managing director of the company said, "The financial year ended March 2021 has indeed been a most testing one for the company with the pandemic hitting its operations very significantly, particularly in the first half of the financial year. But the bounce back of the company on the revenue front so quickly, led entirely by the complete support of our customers and the total dedication and innovative spirit of our employees and business associates, has been extremely gratifying. While the profits before tax and exceptional items for the year are lower than the previous year, mainly due to the impact of the pandemic on the business mix, the company did exceptionally well on the cost optimization program and cash generation front. We have also become stronger in each of our business segments. We believe the experience of the past year will help the company face further challenge even better."
Titan's retail chain (including CaratLane) stands at 1909 stores, as on 31st March 2021 with a retail area crossing 2.5 million sq.ft. for all its brands covering 303 towns.
Shares of Titan were trading 2.21% lower at Rs 1473 on the BSE.
Titan Company is engaged in making and selling watches, jewellery, eyewear and others.
Powered by Capital Market - Live News
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)