For the April-June quarter, Titan Company posted a pre-tax loss of Rs 335 crore.
It had reported a profit-before-tax of Rs 523 crore in the corresponding quarter of previous fiscal
TITAN, after the breakout from a consolidation range, is gradually inching higher while holding strongly above the support zone of the long term moving average( 200 EMA) on the daily chart
The international portfolio currently generates around 10 per cent of the revenue in the watches division for the Bengaluru-headquartered company
TITAN has been trading within 940-1030 zone for almost one and a half months, taking a pause after a sharp rebound
His stake in Tata Group-owned watch and jewellery maker - Titan Company - and tractor-maker Escorts remained unchanged.
Muted demand for high-value studded products a major concern
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The idea of working from home, once derided in India owing to the widely held belief that one "worked" only if one went to an "office", is now no longer an incentive but a necessity.
Expectations of margin pressure, mainly in jewellery business, which contributes over 80% of Titan's overall operating profit, is a key reason why the Street is worried.
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Titan's net profit declined 1.5 per cent on a year-on-year (YoY) basis to Rs 343 crore as the Covid-19 pandemic adversely impacted operations during March
Minimises impact of pandemic through cost control measures; says witnessing good response from customers post opening up outlets
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Last month, the company, in a business update, had informed that the lockdown and restrictions imposed on various activities due to the Covid-19 pandemic had posed challenges to all its businesses.
Titan expects cash outflow to be recovered when sale of jewellery restarts
However, the company says it does not have the urgency to begin production in the factory, but bring back the rhythm of the manufacturing unit.
Ajoy Chawla, CEO of the jewellery division at Titan, tells Samreen Ahmad that the company is gearing up to train nearly 25,000 people in Titan's ecosystem in two weeks to restart post-lockdown work.
Titan which sells Tanishq brand gold and diamond jewellery, operates over 350 retail stores across the counter. Apart from that, the company also sells huge quantity of its products online.
Growth in the segment, which accounts for over 80 per cent of the consolidated sales, was robust in January and February, thus leading to a 16.5 per cent growth in revenues.