Titan Company reported a 135.6% year-on-year growth in net profit of Rs 987 crore for the quarter ended December 2021 as against Rs 419 crore in the same quarter last year, beating the market estimate of Rs 847 crore.
The fashion accessories company reported a 30.6% year-on-year growth in revenue from operations to Rs 9,515 crore, also higher than the market expectations of Rs 9,337 crore.
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Managing Director CK Venkataraman, in a press statement, said, “The festive purchases in the quarter have driven Titan’s strong growth in all businesses of the company and the quarter has turned out to be one of the best quarters in terms of growth and profitability.”
Apart from the festive period, the wedding season also benefited the company diring the last quarter.
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Titan’s jewellery business grew 37% on-year to Rs 8,563 crore in the reported quarter. The division’s earnings before interest and tax (EBIT) stood at Rs 1,260 crore as against Rs 752 crore in the corresponding period, said Titan in a press statement.
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In the watches and wearables segment, it posted a 29% year-on-year growth in sales to Rs 708 crore. It reported an EBIT of Rs 82 crore compared to Rs 57 crore in the same quarter of the previous year.
The eyewear business grew 26% while EBIT came in at Rs 34 crore in the third quarter compared to Rs 22 crore in the same quarter of the previous year.
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Venkataraman added that the onset of the third Covid wave has slowed down the strong momentum but the company is hopeful of a positive ending for this year.
Operating profit in the December 2021 quarter rose 63% year-on-year to Rs 1,398 crore, which is also higher than the market expectation.
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Its operating margin expanded 290 basis points on a year-on-year basis to 14.9%. The jewellery segment led the strong operating growth with a 67% rise in operating profit to Rs 1,260 crore in the reported quarter.
On February 2, 2022, Titan Company stocks closed in green at Rs 2464.00.
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Titan Company Limited (Titan) is a joint venture between the Tata Group and the Tamil Nadu Industrial Development Corporation (TIDCO). It commenced its operations in 1984 under the name Titan Watches Limited. Titan is the fifth largest integrated own brand watch manufacturer in the world.