Good news for Titan shareholders! Company reports strong recovery in Q2 FY 2020-21
Company has witnessed that Q2 has been very satisfying and the positive consumer sentiment gives rise to hope that the festive period could be good.
Titan Company reported an 89% recovery in Sales in Q2 of FY21 led by sharp recovery in the Jewellery division post the significant disruption caused by the Covid 19 pandemic in India in the first quarter of the fiscal. The total income for the quarter was Rs 4,389 cr, including sale of gold bullion to the extent of Rs 391 crores, resulting in a decline of less than 2% compared to the income of Rs 4,466 cr (YoY). The decline in total income excluding bullion sale was close to 11%. The total income for the first half of the fiscal (Hl) was Rs 6,290 cr (including bullion sale of Rs 992 crores ), a decline of 34% against the income of Rs 9,461 cr (YoY). The decline without considering the bullion sale was 44%.
The Watches and wearables business recovered well in the quarter to record an income of Rs 400 crores against Rs 719 cr (YoY), a decline of 44%. The Eyewear business also improved with revenues declining by 39% in the quarter, recording an income of Rs 94 cr as against Rs 154 cr last year. Other segments of the Company comprising Indian dress wear and accessories recorded an income of Rs 23 cr compared to Rs 44 cr in the previous year, a decline of 48%.
Titan Company declared a profit before tax of Rs 238 cr, compared to Rs 429 cr (YoY), a decline of 45% for the quarter. The result is after a provision of Rs 34 cr for dues from a broker relating to commodity hedging. Despite the profit in the quarter, the Company has recorded a loss of Rs 97 cr in Hl compared to a profit before tax of Rs 9 52 cr (YoY). The Jewellery division declared Earnings before interest and tax (EBIT) of Rs 285 cr for the quarter compared to Rs 384 cr (YoY) and Rs 231 cr for Hl compared to Rs 826 cr (YoY). The Watch division reported a loss of Rs 4 cr for the quarter (EBIT of Rs 113 cr YoY) and loss of Rs 168 cr for first half 2021 (EBIT of Rs 241 cr YoY). The Eyewear division turned around remarkably in the quarter with EBIT of Rs 9 cr (loss of Rs 31 cr YoY) and a loss of Rs 22 cr for first half (loss of Rs 10 cr in the previous year).
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Management said "The recovery that the Company has witnessed in the quarter has been very satisfying and the positive consumer sentiment witnessed gives rise to hope that the festive period could be good for all the divisions of the Company. The Company continues to gain market share in its key businesses aided by innovation and total commitment displayed by its employees and the extended business associate network. The focus on cost and capital employed has helped the Company manage its bottom line and cash flows very well."
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