Titan Shares Rise After 59% Surge In Q2 Profit

The shares of Titan Company rose on Tuesday after it posted a 59.1% rise in second quarter profit in quarter ended September. The profit in the second quarter stood at Rs 1,120 crore in comparison to Rs 704 crore posted in the same quarter last year.

Its sales were up 22.17% to Rs 16,461 crore in the September quarter. Total expenses of Titan increased 26.3% to Rs 17,316 crore in the September quarter. Titan's total income, which includes other income, was at Rs 18,837 crore, up 28.55% during the September quarter.

• Revenue up 28.8% to Rs 18,725 crore versus Rs 14,534 crore.

• Ebitda up 51.7% to Rs 1,875 crore versus Rs 1,236 crore.

• Margin at 10% versus 8.5%.

• Net profit up 59.1% to Rs 1,120 crore versus Rs 704 crore.

During the quarter, Titan's jewellery business increased 29.3% to Rs 16,522 crore. In the jewellery business, Titan's domestic business, which includes Tanishq, Mia and Zoya, grew 18% to Rs 12,460 crore.

CaratLane's domestic business posted 32% growth, reaching Rs 1,072 crore, over the second quarter financial year, respectively. Its targeted coins promotion offer drove traffic and conversions helping deliver a strong growth for the quarter, it added.

The scrip rose as much as 1.60% to Rs 3,784.20 apiece on Tuesday. It pared gains to trade 1.26% higher at Rs 3,724.50 apiece, as of 9:53 a.m. This compares to a 0.25% decline in the NSE Nifty 50 Index.

It has risen 15.78% in the last 12 months and 14.10% year-to-date. Total traded volume so far in the day stood at 0.43 times its 30-day average. The relative strength index was at 59.69.

Twenty nine out of the 38 analysts tracking the company have a 'buy' rating on the stock, six recommend a 'hold' and three suggest a 'sell', according to Bloomberg data. The 12-month analysts' consensus target price on the stock is Rs 3,958.8, implying a upside of 11.7%.