Titan Company Ltd.'s profit surpassed analyst estimates in the April-June period, backed by healthy growth in its core businesses. The company's profit has been on the upswing for the last eight quarters.
Net profit jumped 30.7 percent from last year to Rs 349 crore, the jewellery and watch maker said in its exchange filings. That's higher than the Rs 298 crore estimated by analysts tracked by Bloomberg. Net sales rose 8.2 percent to Rs 4,318 crore, beating the consensus estimate of Rs 4,182 crore.
Titan beat expectations on the operational front, too. Earnings before interest, tax, depreciation and amortisation rose 27.4 percent to Rs 495.3 crore on a yearly basis, while the operating margin expanded 180 basis points to 11.5 percent.
“The jewellery industry went through a soft patch in the first quarter with gold imports declining by 39 percent,” said Bhaskar Bhat, managing director of the company. “Going ahead, we've put together plans to stimulate demand for all product categories through innovative advertising campaigns and product launches.”
Segment Highlights
- Jewellery sales grew 5.6 percent to Rs 3,572 crore.
- Sales of watches rose 14.9 percent to Rs 594 crore.
- Eyewear sales grew 16.4 percent to Rs 132 crore.
- Accessories and fragrance sales clocked 36 percent growth to Rs 26 crore.
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