Titan Company Ltd. reported a strong set of earnings for the September ended quarter backed by a jump in revenue from its jewellery business.
Net profit jumped 67 percent to Rs 278 crore compared to that a year ago, according to the company's statement. Revenue rose 29 percent year-on-year to Rs 3,473 crore aided by a 37 percent jump in jewellery sales.
“Our jewellery business was impacted by the new PMLA (Prevention of Money Laundering Act, 2002) regulations at the beginning of the quarter but the rollback, just before the festive season provided a boost to the business,” Managing Director Bhaskar Bhat said in the statement.
Under PMLA, every reporting entity is required to maintain a record of all transactions of value exceeding Rs 10 lakh, all cross border wire transfers of more than Rs 5 lakh and all purchase and sale of immovable property of Rs 50 lakh or more. India's jewellery industry was exempted from this requirement last month after objections from the industry.
Titan's top line was also aided by revenue from the watches segment which rose 9 percent on a year-on-year basis.
Earnings before interest, tax, depreciation and amortisation rose 51 percent to Rs 398 crore on a year-on-year basis while Ebitda margin expanded by 160 basis points to 11.5 percent.
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