Titan’s Jewellery Business “Subdued” in Q2 FY 2018-19 Due to High Gold Prices

Titan Company

Titan Company Ltd’s income from operations for the second quarter (July1, 2019 to September 30, 2019) of the financial year 2018-19 (Q2 FY 2018-19) increased by 0.6% to Rs.4435 crore, as compared to an operating income of Rs.4407 crore recorded for the same period of the previous year.

For the first half (H1) of this financial year (April 1, 2019 to September 30, 2019) Titan’s income amounted to Rs.9375 crore, as against Rs. 8726 crore for H1 FY 2017-2018, thus registering a growth of 7.4% over last year.

The standalone PBT for Q2 amounted to Rs.429 crore , against Rs.446 crore reported last year. “The growth in the profit before tax for the quarter was impacted due to the flat growth in revenues compounded by increase in certain overheads,” Titan explained.

The Company noted that its jewellery business “had a subdued quarter” on the back of very high gold prices. Titan’s jewellery business recorded an income of Rs.3528 crore for Q2 FY 2018-19 2 as compared to Rs.3582 crore for the same period of the previous year.

The Watches business reported an income of Rs.719 crore against Rs.676 crore notched in the previous year, marking a rise of 6.4%.

“The Jewellery division continues to gain market share registering a growth of 5.9% in revenue for the first half of this year and the Watches business is growing at a healthy 12.9% for the same period,” Titan said.

The Company’s retail network accounted for 1668 stores as on 30th September 2019; with a retail area crossing 2.1 million sq.ft. nationally for all its brands.

CK Venkataraman, Managing Director of the Company stated: “The Company has done well across all its businesses in the second quarter given the subdued market and consumer sentiments. The Jewellery business has done better than most players in the industry. Both the Watches as well as Eyewear business have recorded good growth. For the second half of FY 20 we are gearing up on all fronts to stimulate demand with innovative campaigns for new exclusive collections that are lined up for launch across all our brands.”

New Source : gjepc

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