Titan posted 7.4 per cent rise in net profit to Rs 200.71 crore for the fourth quarter ended March 31 as compared to net profit of Rs 186.88 crore in the same quarter of 2015-16.
Titan’s Company Limited on Monday said that it has posted a stellar growth in jewellery business in the fourth quarter ended March 31, 2017 and said this segment will continue to power its topline growth. The company during its concall said that it witnessed maximum growth in jewellery business post demonitisation. It announced its fourth quarter results on Friday and posted 7.4 per cent rise in net profit to Rs 200.71 crore for the quarter ended March 31 as compared to net profit of Rs 186.88 crore in the same quarter of 2015-16.
Titan’s total income grew by 43.89 per cent to Rs 3,486.99 crore during the quarter under review, as against Rs 2,423.30 crore in the year-ago period. The company during the concall said that it had high advertising spends in Q4. Analyst Ashwani Gujaral told CNBC TV18 that higher advertising spends led to crunch in margins of Titan and so he recommends a ‘SELL’ on the stock. Ace investor Rakesh Jhunjhunwala during Titan Company’s concall asked the company to increase their pay out ratios, reported CNBC TV18.
On its watches segment, the company told ET Now that the segment has seen marginal improvement and expected growth to come back. It said that premiumisation and costs helped improve margins to double-digits.
Titan Managing Director Bhaskar Bhat while announcing its fourth quarter results on Friday had said despite the backdrop of a changing environment and regulatory moves like demonetisation, the year 2016-17 was a satisfying one for the company.
“The strength of company’s brands, the reach of its retail and distribution network and the effectiveness of new product introductions and marketing campaigns were tested in a difficult environment,” he added.
The company’s board of directors have recommended a dividend of Rs 2.60 per equity share.
Stocks of the company were trading 3.34 per cent down at Rs 478 on BSE on Monday at 10.49 am. Sensex was trading 127.67 points up at 30,315.82 during the same time.