Share price of Titan Company Limited jumped over 7 per cent after the watchmaker posted a 12.9 per cent jump in profit after tax for the quarter ended December 31. Titan shares were sitting at a price of Rs 1,278.
Share price of Titan Company Limited jumped over 7 per cent after the watchmaker posted a 12.9 per cent jump in profit after tax for the quarter ended December 31. Titan shares were sitting at a price of Rs 1,278. Profit after tax for the third quarter stood at Rs 469.95 crore as compared to Rs 416.23 crore. According to the company Sales income during the third quarter grew by 9.4 per cent while sales income for the nine-month period ending December 2019 grew 8.2 per cent. The overall standalone income from operations in the third quarter stood at Rs 6,206 crore an increase from last year’s income of Rs 5,672 crore. Earnings before interest, taxes, depreciation, and amortization were up more than 25 per cent.
In a filling to the market regulator, Titan said that the Jewellery business recorded a growth of 10.6% in Q3 over last year Rs 5,409 crores this year in Q3 as compared to Rs 4,890 crores last year. The company said that income from the watchmaking business saw a marginal decline over the last year on account of poor December month sales. The income from the watch business stood at Rs 625 crore.
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“The growth we saw during the festival period of October and November was very encouraging. The month of December 2019 witnessed a drop in footfall across all our retail formats compared to the previous two months and hence the sales were muted,” said C K Venkataraman, Managing Director, Titan.
Titan’s consolidated business which includes companies like, Titan engineering & automation, Carat lane trading, and Favre leuba AG Switzerland among others reported at profit of Rs 474.20 crore for the third quarter an increase from Rs 411.09 crore recorded during the same period last year. “The retail growth for our jewelry business was healthy in Q3 on account of a good wedding season. Many new products are lined up for launch in the last quarter and we will continue to invest in our brands and delight our customers with fascinating products coupled with memorable advertising,” Venkataraman added.
Titan also highlighted in the filing that the company as part of its treasury operations, invested in “incorporate deposit aggregating Rs 145 crore” which remains due. “The aforesaid amounts and the interest thereon have however rot been received as on date. As a result of increased credit risk in relation to outstanding balances &om IL&FS Group and the uncertainty prevailing on IL&FS Group due to the proceedings pending with the NCLT, Management has provided for lull amount of Rs 145 lakhs for impairment in the value of deposit for the year ended 31 March 2019,” the company said.
Ace investor Rakesh Jhunjhunwala was an early investor of Titan. Jhunjhunwala along with his wife holds more than 6 per cent stake in Titan Company Limited. His stake in Titan is the largest of his more than Rs 15,000 crore investment portfolio. The company had opened at Rs 1,199 and after a strong 7.55 per cent jump closed at a price of Rs 1,275.50. Titan led the rally on BSE Sensex at closing which saw the benchmark index shrug off losses made on Budget day and soar 917 points to close at 40,789 points.