Titan Company rose 9.25% to Rs 609.10 at 10:52 IST on BSE, extending yesterday's gains triggered by strong Q1 June 2017 results.
The result was announced during trading hours yesterday, 3 August 2017. The stock rose 0.84% to settle at Rs 557.55 yesterday, 3 August 2017. The stock has risen 10.16% in two trading sessions from its close of Rs 552.90 on 2 August 2017.Meanwhile, the S&P BSE Sensex was down 92.91 points, or 0.29% to 32,144.97.
On the BSE, 6.76 lakh shares were traded in the counter so far, compared with average daily volumes of 2.17 lakh shares in the past one quarter. The stock had hit a high of Rs 616.15 so far during the day, which is also a record high for the counter. The stock had hit a low of Rs 563.55 so far during the day. The stock hit a 52-week low of Rs 296.30 on 21 November 2016.
The stock had outperformed the market over the past one month till 3 August 2017, rising 4.79% compared with 3.18% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 13.37% as against Sensex's 7.97% rise. The scrip had also outperformed the market in past one year, rising 37.06% as against Sensex's 16.32% rise.
The large-cap company has equity capital of Rs 88.78 crore. Face value per share is Re 1.
On a consolidated basis, Titan Company's net profit rose 96.85% to Rs 237.97 crore on 42.19% rise in net sales to Rs 3985.14 crore in Q1 June 2017 over Q1 June 2016.
Titan Company said Q1 June 2017 was an extremely good quarter for the company. Profit was driven largely by a healthy growth in the jewellery business.
The jewellery division recorded an income growth of 54% in Q1 June 2017 over Q1 June 2016. The watches business recorded a growth of 2%. The company's eyewear business was flat at Rs 110.67 crore in Q1. The company's other businesses comprising accessories, fragrances and sarees grew by 46% to Rs 19.90 crore in Q1 June 2017 over Q1 June 2016.
Retail expansion continued with a net addition of 31 stores across all its businesses in the first quarter, ending the period with a retail area of over 1.83 million square feet nationally. The company's retail chain is 1,397 stores strong, as on 30 June 2017 and is expanding with growth plans in place for all its retail businesses watches, jewellery and eyewear.
The company said it has put together plans to stimulate demand for all its product categories through innovative advertising campaigns and new product launches in the coming quarters.
Bhaskar Bhat, managing director of the company stated that the company's jewellery business has delivered a stellar performance in the first quarter due to a combination of one of the best Akshaya Tritiya sales, a very successful gold exchange programme as well as an element of advancement of sales in June 2017 in anticipation of higher goods and services tax (GST) rates. All retail formats of watches business recorded growth but the topline growth was subdued due to postponement of Titan and Fastrack brand activations. The performance of eyewear business has been adversely impacted due to a slowdown of the sunglass category. Driven by the jewellery business, profits saw an outstanding growth this quarter, he added.
Titan Company's main business lines are watches, jewellery and eyewear.
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