Titan pays Rs 25 crore to ex-MD Bhaskar Bhat as special retirement benefit

Jewellery-to-watches maker Titan has paid Rs 25 crore to its former managing director Bhaskar Bhat as special retirement benefit, said the company in a BSE filing on Tuesday.

“During the quarter ended 31 December 2019, the board of directors approved the special retirement benefits payable to the managing director who retired in September 2019, as per the policy of the company,” said the Bengaluru-headquartered firm. Bhat continues to serve as a non-executive non-independent director on the company board.

“This is a distinctive recognition for the kind of fast paced growth that he created for Titan,” said brand consultant Harish Bijoor. Bhat was associated for nearly 36 years with Titan, and was with the company even before the brand existed.

The Tata Group JV saw an increase of almost Rs 77 crore in the employee benefits expenses for the quarter. It posted a pre-tax profit of Rs 648 crore, a rise of around 8 per cent as compared to the corresponding quarter of the previous financial year. Net consolidated profit for the same period registered as rise of 15 per cent yoy. Consolidated revenue during the December quarter grew by 10 per cent to Rs 6,550 crore as compared to Q3 of FY19. The operating margin improved 20 basis points to 10.6 per cent yoy.

Among the different segments, the jewellery business recorded a growth of 10.6 per cent in Q3 over last year on a standalone basis.

“The retail growth for our jewellery 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," said C K Venkataraman, Managing Director of the company.

According to experts, the management expects jewellery business to achieve 11-13 per cent growth in Q4. “Titan continues to gain market share in jewellery and watches businesses. The gaining market share from small players, addition of new store and better mix would be key drivers for jewellery business, said Kaustubh Pawaskar, research analyst, Sharekhan by BNP Paribas.

While the income from watches was Rs 625 crore in Q3, registering a marginal decline over last year on account of a poor December month for sales, eyewear business grew by 2.9 per cent in Q3 to Rs 133 crore. The fragrances and Taneira business grew strongly at 33 per cent.