Titan Company dropped 11.58% to Rs 801.60 after the company said it has closed down all its manufacturing units in all businesses across the country for one week, starting 23 March 2020.
"With the outbreak of the Coronavirus (COVID-19) pandemic, the company has been monitoring the events on the ground closely and has been taking a series of actions to address the situation. In the interest of the investors and stakeholders, an update is being given despite the situation being extremely fluid and uncertainty in operations in the near future also being very high," Titan Company said in a statement on Sunday, 22 March 2020.
The company said it is very concerned about the welfare of its employees and has therefore adopted a work from home policy for all its offices across the country starting 17 March 2020 and will continue with this policy till it is felt safe to work from office. Technology is being fully leveraged and as of now, critical back end operations are being managed with minimum staff, or remotely. With the banking system working efficiently, collection and payment processes continue to operate normally.
Based on the current circumstances, the central and state government directives and the company's own risk perception, the company has decided to close down all its manufacturing units in all businesses across the country for one week, starting 23 March 2020.The situation will be evaluated at the end of this week and further course of action will then be decided.
The company has been trying to balance the interests of the customers and employees to the extent possible in its decision to operate or shut down retail stores. Walk-ins had fallen in some businesses over the last week and therefore the company managed stores with around 75% rotational staffing with adequate precautions being taken to ensure that social distancing norms were followed. Based on government directives, many malls and large high street stores have been closed.
All stores were closed on the 22 March 2020 in deference to the exhortation of the Prime Minister. However, based on the current COVID-19 situation and the company's current assessment of risk to its employees and customers, a decision has been taken to shut all the stores (company operated and franchisee operated) across all the brands till the 29 March 2020, when the situation will be reviewed on whether to continue with the closure or not, it stated.
The scrip hit its 52-week low at Rs 801.60 during intraday trade.
On a consolidated basis, Titan Company's net profit rose 14.9% to Rs 474.62 crore in Q3 December 2019 as against Rs 413.19 crore reported in Q3 December 2018. Net sales stood at Rs 6,454.58 crore in Q3 December 2019, rising 10.5% Y-o-Y from Rs 5,839.82 crore reported in Q3 2018.
Titan Company is engaged in offering watches, jewelry and others. The company's segments include watches, jewellery, eyewear and others.
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