NEW DELHI: Titan Company Ltd on Wednesday reported a 37.81 per cent decline in its standalone net profit to Rs 199 crore for the quarter ending in September as compared to Rs 320 crore in the corresponding period of the previous financial year.
However, it has reported a significant recovery in sales in its jewellery division business According to the company, the jewellery division recorded an income of Rs 3,446 crore for the quarter as compared to Rs 3,528 crore last year, a decline of only 2 per cent.
Titan reported an 89 per cent 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. 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 per cent for the Watches and Wearables division, 98 per cent for the Jewellery division and 61 per cent for eyewear.” Titan Company Managing Director C K Venkataraman said,
“The recovery that the company has witnessed in the quarter has been satisfying, and the positive consumer sentiment witnessed gives a rise to hope that the festive period could be good for all the divisions of the company.” He added that the company continues to gain market share in its key businesses. Total income during the quarter under review was Rs 4,389 crore.
Revenues hurt due to low discretionary spends
Titan’s watches and wearables business reported an income of Rs 400 crore against Rs 719 crore in the previous year, a decline of 44 per cent. Other segments, comprising Indian dress wear and accessories, recorded an income of Rs 23 crore as compared to Rs 44 crore last year, a decline of 48 per cent.