Titan's March Quarter Profit Slid 7.2% As Pandemic Impacted Sales

Titan's March quarter profits fell as Pandemic third wave impacted sales
Titan's March quarter profits fell as Pandemic third wave impacted sales

Titan Company Limited on Tuesday said its net profit fell by 7.18 per cent year-on-year to Rs 491 crore for the quarter ended March 2022 from Rs 529 crore recorded in the corresponding period of last year due to poor show of jewellery business.

The company's profit during the quarter was hit due to decline in jewellery sales. During the January-March 2022 quarter, jewellery sales fell by 4.1 per cent year-on-year to Rs 6,132 crore. The decline in sales was largely due to partial store closures during the third wave of Covid-19.

March quarter of 2021-22 ended with a satisfactory performance despite partial lockdowns, volatility in gold prices and uncertainty in a fragile geopolitical situation, Titan Company Limited said in a statement.

Total income for the fourth quarter of 2021-22 stood at Rs 7,352 crore, a growth of 3 per cent compared to, Rs 7,169 crore in the fourth quarter of 2020-21. Excluding bullion sales, revenue declined by 2 per cent compared to fourth quarter of 2020-21.

The company reported a profit of, Rs 716 crore (before taxes and exceptional items) as compared to, Rs 702 crore in the same quarter of the previous year.

For the full year 2021-22, the company's total income rose to Rs 26,411 crore, registering a growth of 36 per cent compared to, Rs 19,426 crore in 2020-21 (excluding bullion sale).

The company recorded a profit of Rs 2,983 crore (before taxes and exceptional items) for the fiscal year ended March 2022 in comparison to Rs 1,370 crore in 2020-21, a growth of 118 per cent.

Commenting on the results, C K Venkataraman, Managing Director, Titan Company Limited, said, "Despite frequent disruptions in the quarter owing to Covid third wave and other geo-political factors, the quarter has been satisfactory in terms of growth and profitability."

"The company is well prepared and looking forward to an exciting first quarter with all its stores ramped up for a much-awaited Akshaya Tritiya festival this year. With international expansion in GCC markets and the first Tanishq store coming up in the US, we are gearing up to touch new horizons in 2022-23," Mr Venkataraman said.

Watches & wearables business reported an income of Rs 622 crore with 12 per cent growth in March quarter of 2021-22 compared to Rs 555 crore in March quarter of 2020-21.