Last updated: 27 Oct, 2021 | 02:40 pm
Profit rises: Titan has reported a 270% rise in net profit to Rs 641 crore for the Jul-Sep quarter. It has reported Rs 173 crore profit in the same quarter last year. Sequentially net profit rose by 35 times from Rs 18 crore in June-21 quarter when the demand was impacted due to COVID restrictions.
Revenue growth: Due to strong demand recovery Titan's revenue from operations rose by 75.5% to Rs 7,243 crore beating street estimates. Analysts had estimated revenue of around Rs 6,271 crore. Sequentially revenue increased by 141% from Rs 3,004 crore. The growth in revenues was aided by a strong growth across all its business segments as COVID related restrictions eased out, footfalls increased and the average operational store days increased over 90% during the quarter.
Margins: The company has reported EBIT growth of 12.2% from 2.5% last quarter. Higher sales also had a positive impact on the EBIT across segments. EBIT for Jewelry business had a robust increase of 180% to Rs 803 crore from Rs 286 crore in the previous year. Watches and wearables rose to Rs 90 crore from Rs 12 crore last year. EBIT for eye wear increased more than 300% from Rs 9 crore last year to Rs 37 crore in July-Sept quarter. However, the other segment came down from positive EBIT of Rs 7 crore last year to Rs 3 crore. The company was able to improve its net margins significantly by 500 bps from 4% in the last year to 9% in this quarter.
Store count: The company added 60 stores in the first half of this year, taking the total number of stores to 1,969 in 308 towns. The company now has an operational area of more than 2.6 million square feet (including Caratlane).
Titan Q2 earnings review:
Titan has reported a strong set of numbers for the quarter ended Sep, beating street estimates. Titan's strong growth this quarter was due to demand recovery being witnessed in all segments of the company and lower base of last year. Titan's store expansions have also gained traction during the quarter and were fully operational, returning to pre-pandemic normalcy in most parts of the country. Titan's strong digital presence combined with trusted offline experience gives a positive outlook for the overall performance of the company for the rest of the fiscal year. Titan Company shares on BSE closed 0.14% higher at RS 2,460.35 apiece.