Titan Company, India’s largest jewelry conglomerate, said second quarter (Q2) revenue from its mainstay jewellery division was almost at the same level as what was seen in the corresponding quarter last year. The jewellery division recorded revenue of Rs. 3,446 crores for the quarter as compared to Rs. 3,528 crores last year, a decline of 2pc.
The watches and wearables business had revenue of Rs. 400 crores against Rs. 719 crores in the previous year, a decline of 44 pc. The eyewear biz reported a revenue decline of 39 pc, recording an income of Rs. 94 crores versus Rs. 154 crores last year. The other segments of the company, comprising Indian dress wear and accessories, recorded an income of Rs. 23 crores compared to Rs. 44 crores in the last year, a decline of 48pc. The company sold gold bullion worth Rs 391 cr to shore up its finances and take advantage of higher prices for the metal.
consequently, the total revenue of the company was down only 2pc on year at Rs 4,389 cr, compared to Rs 4,466 crores for the second quarter of last year. Excluding the impact of the gold bullion sales, revenue was down 11 pc. The company declared a profit before tax of Rs 238 crores, compared to Rs 429 crores in the previous year. Earnings before interest and tax (EBIT) fall to Rs 285 cr from Rs 384 cr last year because of the fact that plain jewellery carries far lower margins than studded jewellery. The watch division reported a loss of Rs 4 crores for the quarter compared to EBIT of Rs 113 crores in the previous year.
Shares of Titan Company closed today (Wednesday) at Rs 1218.25 per share down by Rs.13.55 or 1.10% from its previous closing on the National Stock Exchange.
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