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    Titan Q2 results: Revenue declines nearly 2% to Rs 4,389 crore

    Synopsis

    The maker of watches, jewellery and eyewear reported a decline in net profit of 37.81% at Rs 199 crore. A year ago, Titan had posted a net profit of Rs 320 crore during the same quarter.

    TitanShutterstock.com
    The recovery rate of revenue improved substantially in the quarter, the company said in a stock exchange filing.
    Bengaluru: Titan Company, the maker of watches, jewellery and eyewear, on Wednesday reported a 37.81% fall in net profit for the quarter to September.

    The Tata Group-owned company, however, said recovery rate of revenue improved substantially in the quarter.
    Net profit fell to Rs 199 crore from Rs 320 crore in the year-ago quarter, the company said. Revenue slipped 1.72% to Rs 4,389 crore, led by recovery in the jewellery division post significant Covid-induced disruption that prompted closure of retail outlets in April and May.

    “The recovery that the company has witnessed in the quarter has been very satisfying and the positive consumer sentiment witnessed gives rise to hope that the festive period could be good for all the divisions,” said C K Venkataraman, managing director of Titan Company.

    With lockdown lifted in most parts of the country, the company was able to operate most of its stores across divisions.

    The jewellery division outperformed other divisions and recorded an income of Rs 3,837 crore, an increase of 8.75%, driven by improved customer sentiment in the quarter with greater willingness to spend on plain gold jewellery and gold coins rather than pure discretionary items.

    The watches division posted a 44% drop in sales at Rs 400 crore as against Rs 719 crore in the year-ago quarter, while the eyewear division posted a 39% decline with sales of Rs 94 crore against Rs 154 crore in the same period last year.

    “The company continues to gain market share in its key businesses aided by innovation,” Venkataraman said. “The focus on cost and capital employed has helped the company manage its bottom line and cash flows very well.”

    Shares of Titan Company slipped 1.2% to close at Rs 1,217.90 on the Bombay Stock Exchange on Wednesday.



    ( Originally published on Oct 28, 2020 )
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    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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