Jewellery Boosts Titan’s Sales In January-March

Titan Company Ltd.’s revenue surged in the three months ended March on the back of higher jewellery sales as organised gold retailers gained from demonetisation and government’s cash curbs.

The watch-to-jewellery maker’s sales jumped nearly 44 percent to Rs 3,460 crore, compared to the same period last year, helped by the company’s aggressive expansion. The Tata Group company opened 84 outlets of its watches, jewellery and eyewear businesses in the year ended March, the company said in a stock exchange filing on Friday.

Titan’s net profit rose 7.5 percent to Rs 201 crore year on year in January-March. Profit missed the Bloomberg consensus estimate of Rs 225 crore as the company’s operating margins contracted 80 basis points to 7.9 percent, mainly due to a rise in raw material and other input costs.

Organised retailers such as Titan-owned Tanishq performed better due to a surge in cashless transactions post demonetisation, a recent report released by the World Gold Council said. Buying ahead of the upcoming wedding season also pushed up jewellery sales. Jewellery business contributes more than three-fourths to Titan’s revenue.

The company’s watch business grew 2.7 percent and its eyewear sales rose 8.4 percent compared to January-March last year.

For the full year ended March, Titan’s revenue grew 14.5 percent to Rs 12,717 crore, while net profit rose 9.2 percent to Rs 762 crore.

The company’s board announced a dividend of Rs 2.6 per share, which will be paid after shareholders’ approval.