Titan Company fell 1.58% to Rs 358.35 at 9:22 IST on BSE after net profit declined 14.40% to Rs 184.11 crore on 1.51% decline in net sales to Rs 2437.15 crore in Q4 March 2016 over Q4 March 2015.
The result was announced after market hours on Friday, 6 May 2016.Meanwhile, the BSE Sensex was up 170.08 points, or 0.67%, to 25,398.58 .
On BSE, so far 55,000 shares were traded in the counter, compared with an average volume of 2.64 lakh shares in the past one quarter. The stock hit a high of Rs 366.30 and a low of Rs 352.05 so far during the day. The stock hit a 52-week high of Rs 392 on 26 November 2015. The stock hit a 52-week low of Rs 303 on 1 October 2015. The stock had outperformed the market over the past one month till 6 May 2016, rising 4.66% compared with 1.32% rise in the Sensex. The scrip had, however, underperformed the market in past one quarter, falling 1.42% as against Sensex's 2.48% rise.
The large-cap company has an equity capital of Rs 88.78 crore. Face value per share is Re 1.
Titan Company's net profit declined 14.24% to Rs 705.85 crore on 5.21% decline in net sales to Rs 11176.90 crore in the year ended March 2016 over the year ended March 2015.
Titan said in a statement that Q4 March 2016 and the year ended March 2016 was an extremely challenging one for the company. The challenges faced were both on account of weak market conditions for all businesses and new regulatory restrictions for the jewellery business. The performance came in the backdrop of an environment where the consumer sentiment did not pick up as expected. The strength of the company's brands was tested in an environment of subdued sales across all retail formats of the company as well as related categories. Weak consumer sentiment had an impact on retail sales across all businesses, the company said.
The watches business of the company recorded an income of Rs 1953.55 crore, a growth of 1.7%. This was achieved through planning and execution of various initiatives including new products and campaigns. The key highlight of the year was Titan's entry into the world of smart watches through launch of 'Titan Juxt'. The income from Jewellery segment saw a decline of 7.6% at Rs 8717.40 crore. The absence of revenues from the Golden Harvest scheme for the first eight months of the current fiscal and the disruption caused by the industry-wide strike in the last quarter contributed significantly to the decline in revenue. The year saw launch of many successful collections in jewellery as well as an effective wedding campaign. The income from Eyewear business was Rs 371.58 crore, recording a healthy growth of 11.8% on the bock of an aggressive network expansion strategy. Other businesses of the company comprising precision engineering business, accessories and fragrances recorded a sale of Rs 235.17 crore, a growth of 1.3%.
The year witnessed aggressive expansion of its retail network with a net addition of 82 stores by watches, jewellery and eyewear businesses. As on 31 March 2016, the company had 1283 stores, with over 1.7 million square feet of retail space delivering a retail turnover in excess of Rs 11,010 crore, the company added.
Meanwhile, Titan Company said that its board approved acquisition of majority stake in Chennai-based Carat Lane Trading, a leading online jewellery brand. It sells its products through its website Caratlane.com. The company has also developed omni-channel capabilities and has currently 13 stores across the country with plans to ramp up the retail stores significantly in the future. The financial details of the acquisition will be furnished after the conclusion of the accounting due diligence of the target. Acquisition is expected to be completed on or before mid June 2016. The proposed acquisition does not fall within related party transaction and the promoters of Titan Company have no interest in the entity proposed to be acquired. Mr. Bhaskar Bhat, Managing Director of the Company stated that for Titan, the acquisition brings significant capabilities in the e-commerce space along with a brand, a customer segment and an exciting business model.
Titan Company is into eyewear, watches and jewellery making business.
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