Last updated: 05 Aug, 2021 | 02:25 pm
Revenues rise: Titan has reported total consolidated revenue at Rs 3519 cr, 74% jump in revenue on a YoY basis. On a QoQ basis, revenue was down by 60%.
Titan highlighted that:
Titan Q1 Net Profit: Titan reported consolidated net profit attributable to shareholders at Rs 20 cr, an improvement from Rs 291 cr loss in the same quarter last year. On a QoQ basis, Net Profit was down by 96%.
Margins remain flat: A sharp reduction in operating expenses (including variable expenses) aided an EBIT of Rs 88 crore despite the weak topline. Gross margins for the quarter were negatively impacted by a cut in customs duty. Anyway, as per management, the trajectory continues to be healthy with underlying gross margins at the highest level in the last five quarters. Higher studded share and lower share of gold coins helped improve the margins.
Titan posted a good set of numbers when compared year over year but that was due to a low base caused by countrywide lockdown. The company reported declining numbers quarter over quarter because of the second wave in Q1. However, Titan continues to benefit from increased share of jewellery in overall wedding expenses, consumer spending more on discretionary given savings in travel etc. and rapid industry formalization due to smaller competitors facing supply and financing challenges.