Titan's growth recovers, but margins see some pressure

Jhunjhunwala's suggestion to management to increase dividends, if accepted, could improve sentiment

The March quarter results of Titan Company (Titan) show the company has bounced back strongly from demonetisation blues. This was reflected in the strong year-on-year (y-o-y) growth of 43 per cent in net revenue to Rs 3,430 crore for the March quarter (Q4). The number was much ahead of the Bloomberg consensus estimate of Rs 3,218 crore and was driven by healthy growth in the jewellery business (83 per cent of overall revenues). Interestingly, grammage (volume) growth of 37 per cent in Q4 was the highest in the past 10 quarters and was partly driven by a strong wedding season.