Titan Q4 Results: Profit Rises Despite Lockdown-Induced Disruption

Titan Co.’s quarterly profit rose even as the nationwide lockdown meant to contain the Covid-19 pandemic shuttered jewellery stores, bringing the industry to a standstill.

Net profit rose 21.1% year-on-year to Rs 356.8 crore in the January-March period, India’s largest branded jewellery maker said in an exchange filing. That compares with the Rs 285-crore consensus estimate of analysts tracked by Bloomberg.

Revenue fell 5.2% over the year-ago period to Rs 4,428.8 crore. Analysts had pegged the company’s top line at Rs 4,388 crore.

Titan’s earnings before interest, tax, depreciation and amortisation rose 32.5% year-on-year to Rs 603.7 crore in the quarter ended March. Its Ebitda margin expanded to 13.6% from 9.8% a year ago.

That came as sales in its jewellery segment, which accounts for 80% of the company’s revenue, declined 5.8% year-on-year during the reported quarter. This is the first time in eight quarters that the jewellery segment witnessed a decline.

The owner of ‘Tanishq’ brand had warned earlier that the lockdown in March wiped off gains made during the first two months of the quarter. While January and February saw 16.5% growth, the pademic offset the benefit as the company kept its stores closed after the nationwide lockdown was announced to contain the virus’ spread.

The first two months were good for the jewellery segment despite high gold prices, Titan said in a media statement. Revenue for the watches segment, too, recorded a growth of almost 5% at Rs 557 crore. Eyewear business, which is relatively smaller, saw revenue fall 17.4%.

The company said they’re now opening up stores with strict social distancing norms across the country. The response from the customers has been “very encouraging”, Venkataraman said.

Shares of Titan closed about 4% higher ahead of the earnings announcement. That compares with the NSE Nifty 50 Index that ended largely flat.