Titan Company gained 1.05% to Rs 1047.65 at 15:08 IST on the BSE after consolidated net profit rose 10.84% to Rs 363.74 crore on 15.62% rise in net sales to Rs 509.51 crore in Q1 June 2019 over Q1 June 2018.
The result was announced during market hours today, 6 August 2019.
Meanwhile, the S&P BSE Sensex was up by 273.35 points or 0.74% at 36,973.18.
On the BSE, 2.61 lakh shares were traded in the counter so far compared with average daily volumes of 1.33 lakh shares in the past two weeks. The stock had hit an intraday high of Rs 1070 and an intraday low of Rs 1022.75. The stock hit a 52-week high of Rs 1340.75 on 1 July 2019. The stock hit a 52-week low of Rs 731.7 on 9 October 2018.
On standalone basis, company's net profit rose 6.17% to Rs 370.73 crore on 14.45% rise in net sales to Rs 4885.38 crore in Q1 June 2019 over Q1 June 2018.
The Jewellery division recorded an income growth of 13.3% in the first quarter. The income from this division in Q1 was Rs 4047 crore as against Rs 3572 crore last year. Growth in the jewellery segment was adversely impacted by high gold prices, especially during the month of June 2019. The Watches business grew from Rs 594 crores in Q1 last year to Rs 715 crores this year, recording a growth of 20.4%, powered by excellent growth in brand Titan. The company's Eyewear business grew by 13.1% to Rs 149 crore for Q1 this year. The company's other businesses comprising accessories, fragrances and sarees grew by 37.9% to Rs 36 crore this year. The above are standalone figures.
Retail expansion continued with a net addition of 45 stores across all its businesses in the first quarter, ending the period with a retail area of over 2.1 million square feet nationally. The company's retail chain is 1640 stores strong, as on 30th June 2019 and the network expansion effort will remain undiminished across all its businesses - Watches, Jewellery and Eyewear.
Commenting on company's Q1 performance, Bhaskar Bhat, managing director of the company said, "The macro-economic environments coupled with lower consumption have impacted some of the company's business. The retail growth in jewellery was driven by encouraging performance in the studded as well as wedding jewellery segments. However, there has been a weak consumer sentiment prevailing across, especially in jewellery with additional factors like price volatility and customs duty increase. The watches business has done well, with a growth of 20% while retaining its focus on healthy margins. The profit growth for the company appears subdued due to investments made in biennial overseas conferences for our business associates across all divisions as well as the impact of wage settlement with our unionized employees that was cordially concluded in this quarter.
Titan Company is engaged in manufacturing jewellery, watches and eyewear. The company offers plain and studded gold jewelry brands, such as Tanishq, GoldPlus, Zoya, Mia, which are retailed through Tanishq, GoldPlus, Zoya & Mia stores.
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