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Titan Company posted a strong quarter for the period ending June 2021 (Q1FY22) on a year-on-year basis. However, sequentially, the company recorded a decline in both the top-line and bottom-line front.
In Q1FY22, Titan posted a standalone net profit of Rs61cr better from a net loss of Rs270cr a year ago same period, however, lower from a profit of Rs529cr
Standalone total income was at Rs3,314cr in Q1FY22 rising from Rs1,901cr in Q1FY21 but declining from Rs7,169cr in Q4FY21.
Titan’s revenue grew by 122% (excluding bullion sale) in Q1 FY22 compared to Q1 FY21, primarily driven by the base effect of zero sales in Apr’20 last year. Most of the sales of May month were lost in both the years. Sales in Jun’21 were marginally ahead of sales in Jun’20 despite lower store operational days.
Furthermore, the Jewellery division is gaining good traction in new customers and its mix in total buyers has reached the pre-pandemic levels. It recorded an income of Rs2,467cr for the quarter as compared to Rs. 1,182 crores same period last year (excluding bullion sale in both the years).
The Watches and Wearables business recorded an income of Rs. 292 crores in the quarter against Rs. 75 crores in the same period the previous year.
The Eyewear business recorded an income of Rs. 67 crores in the quarter as against Rs. 30 crores same period last year. The other segments of the Company comprising Indian dress wear and accessories recorded an income of Rs. 14 crores this quarter compared to Rs. 4 crores in the quarter of the previous year.
CK Venkataraman, Managing Director of the Company said, “While we started the quarter with strong business momentum, the second wave of the pandemic severely disrupted it and we quickly shifted our priorities to health and safety of our employees, business associates and customers. The learnings and experience of the past year helped us navigate this quarter’s turbulence much more efficiently. As the lockdowns started getting relaxed in different parts of the country in June, and with the rising vaccination level, we saw demand coming back steadily.”
Venkataraman added, “Given the challenging economic backdrop during the quarter, I believe Titan delivered a satisfactory financial performance. With the strengthened digital presence and high percentage of vaccinated employees and associates making our retail store a safe place, we are optimistic about the overall performance of the Company.”
The Company’s retail chain (including CaratLane), is spread across 1,922 stores in 297 towns having an area exceeding 2.5 million sq. ft. The Company added a net of 13 stores in this quarter – 4 in Jewellery, 6 in Eyeplus, 4 in CaratLane and reduction of l in Watches respectively.
At around 10.38 AM, Titan was trading at Rs1773.05 per piece down by 1.5% on Sensex.
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