Titan Company announced its second-quarter results on Wednesday. The company’s profit declined 37.81 percent to Rs 199 crore. The company had made a profit of Rs 320 crore in the same period last fiscal. The company’s profit was lower than analysts’ estimates. Titan is a Tata group company.
Analysts in the ET poll had projected the company’s profit to be Rs 205 crore in the September quarter. The company’s total income declined 1.72 percent to Rs 4,389 crore in the September quarter. The income in the same period a year ago was Rs 4,466 crore. The total income includes the sale of gold bullion worth Rs 391 crore.
Titan said it lost Rs 484 crore in the September quarter due to changes in cash flow hedging. The company said that the recovery rate of revenue has increased in the September quarter. The watches and wearable divisions were rated at 55 percent, jewelry division 98 percent, and eyewear division 61 percent.
Titan said, “With the end of the lockdown in most parts of the country, most stores in all the divisions have started functioning. Customers in the store are now beginning to arrive.” The September quarter has seen a significant improvement in customer engagement. Instead of expensive items, there is a demand for general gold jewelry and gold coins.
The jewelry segment’s income in the September quarter was Rs 3,446 crore (excluding gold bullion) in the September quarter. This is 2 percent lower than the Rs 3,528 crore income in the same period last year. Watch and wearable business has an income of Rs 400 crore. It was Rs 719 crore in the same period last year. The company’s share price fell 1.12 percent to close at Rs 1218 on Wednesday.
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