Titan Co. reports a growth of 14.7%
Titan Company reported a growth of 14.7 percent in income in Q3 over same period last year despite some headwinds on account of demonetisation. A good festival and wedding season contributed to growth in retail sales. Income for the nine-month period ending December 2016 grew by 7 percent. The overall income from operations in the third quarter, October to December 2016, was Rs3,905.22 crore, as compared to last year's income of Rs3,404.52 crore during the same period. The income for April to December 2016, the nine-month period, stands at Rs9,371.36 crore.
The profit before tax for Q3, October to December 2016, was Rs350.34 crore, registering a handsome growth of 21.3 percent. The net profit for the same period was Rs255.75 crore and Rs563.20 crore for the nine-months ended December 2016. The profit before tax for the nine-month period ending December 2016 grew by 14 percent, to Rs771.51 crore.
The income from watches was Rs508.26 crore in Q3, a growth of 5.1 percent over last year. On the other hand, jewellery business recorded a growth of 15.4 percent in Q3 over last year. The jewellery business had an income of Rs3,255 crore this year in Q3 as compared to Rs2,820.27 crore last year. For the nine-month ended December 2016, the jewellery business recorded a growth of 7.5 percent. The eyewear business reported a growth of 12.4 percent in income, in Q3, at Rs90.65 crore. Other businesses of the company, comprising a B2B business, precision engineering and the accessories business registered a growth of 44.5 percent in Q3, at Rs75.97 crore. The nine-month income for these businesses grew by 33.2 percent to Rs215.71 crore.
The Titan Company (TCL) retail chain is 1,333 stores strong, as on December 31, 2016, with the retail area crossing 1.75 million sq ft nationally for all its brands. A total of 118 stores were added by TCL brands in the nine month period till December 2016.
Bhaskar Bhat, MD, Titan Company: "The third quarter was an extremely encouraging quarter for the company. Despite initial headwinds on account of demonetisation, the company clocked a growth of over 14 percent and a PBT growth of 21 percent. The festival season was very good for both our jewellery and watches business. Our effort continues therefore to be one of generating demand, through new product introductions and network expansion while retaining our focus on cost control."
