Titan Q3 net up 12% as jewellery division shines

Buoyed by growth in the jewellery division, Titan has clocked an 11.8 per cent increase in consolidated net profit at ~530 crore for the third quarter ended FY21. The company had posted a net profit of ~474 crore in the corresponding period a year ago.

Consolidated revenue during the quarter stood at ~7,659 crore, up 16.9 per cent against a revenue of ~6,550 crore in the year-ago period, the company said in a BSE filing.

“Titan Company reported a return to year-on-year growth in sales in Q3 of FY21 led by an impressive festive season recovery in the jewellery division,” said the company.

While the jewellery business grew 16 per cent (excluding gold bullion sales) over the corresponding quarter of the previous year, the watches and wearables, and eyewear divisions also did well, with the recovery rate for the quarter being 88 per cent and 93 per cent, respectively.

Riding on a strong festive and wedding season, the company saw significant recovery in the diamond-studded segment of the jewellery business, with coin sales continuing to remain high.

“We are pleased to see the return to growth in top line for the company and the recording of the highest-ever profits in any quarter. The recovery witnessed has been significantly better than what we had expected a few months ago,” said C K Venkataraman, managing director of the watches-to-jewellery maker.

Because of absence of travel and substantial pruning down on wedding celebrations, the jewellery purchases have seen a boost, as the share of wallet has gone up for them, according to the Bengaluruheadquartered firm. “Wedding growth was 10 per cent in Q3 for us and it was upwards in the range of 16 per cent in January. For the next 5-6 months we will be bullish on weddings,” said Ajoy Chawla, chief executive of jewellery division at Titan, during an investor call on Wednesday.

The watches and wearables business recovered well in the quarter to record an income of ~551 crore against ~627 crore in the previous year, a decline of 12 per cent. The eyewear business also improved with revenues declining 7 per cent in the quarter, recording an income of ~124 crore as against ~133 crore last year.