Titan Company today reported a standalonenet profit of ₹199 crore in the September quarter as compared to ₹320 crore in the same quarter of the previous year. However, sequentially, the it was a big turnaround from the ₹270 crore loss posted in the June quarter.
Titan reported an 89% recovery in sales in Q2 of FY 2020-21 led by sharp recovery in the Jewellery division post the significant disruption caused by the Covid 19 pandemic in India in the first quarter of the fiscal. The total income for the quarter was Rs. 4,389 crores, including sale of gold bullion to the extent of ₹391 crores, resulting in a decline of less than 2% compared to the income of ₹4,466 crores for the same quarter in the previous year. The decline in total income excluding bullion sale was close to 11%.
With the lockdowns being lifted in most parts of the country, Titan said it “was able to operate most of its stores across all its divisions. Customer walk-ins have started improving even as social distancing norms remain. The recovery rate of revenue improved substantially in the quarter, with the rate being 55% for the Watches and Wearables division, 98% for the Jewellery division and 61% for the Eyewear division.”
“While the customer sentiment improved substantially in the quarter, there was greater willingness to spend on plain gold jewellery and gold coins rather than pure discretionary items, explaining the reason why the recovery rates in Watches and Eyewear and even studded jewellery within the Jewellery division were lower,” Titan said.
The jewellery division recorded an income of Rs. 3,446 crores for the quarter (excluding gold bullion sales) as compared to Rs. 3,528 crores last year, a decline of 2%. The Watches and wearables business recovered well in the quarter to record an income of Rs. 400 crores against ₹719 crores in the previous year, a decline of 44%. The Eyewear business also improved with revenues declining by 39% in the quarter, recording an income of Rs. 94 crores as against Rs. 154 crores last year.
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 previous year, a decline of 48%.