Titan net up 12% as jewellery division shines

Tata group firm Titan Company on Wednesday reported an 11.81% increase in consolidated net profit to Rs 530 crore for the third quarter ended in December 2020, led by income growth in the jewellery division.

The company had posted a net profit of Rs 474 crore in the corresponding period last fiscal.

Total income during the quarter stood at Rs 7,659 crore, up 16.93% as against a total income of Rs 6,550 crore in the year-ago period.

"Titan Company reported a return to year on year growth in sales in Q3 of FY 2020-21 led by an impressive festive season recovery in the jewellery division," the company said.

Titan's jewellery division recorded an income of Rs 6,249 crore for the quarter (excluding gold bullion sales) as compared to Rs 5,409 crore last year, a growth of 16%.

The watches and wearables business in the quarter stood at Rs 550 crore against Rs 625 crore in the previous year, a decline of 12%. The eyewear business saw revenues declining by 7% in the quarter to Rs 124 crore against Rs 133 crore in the year-ago period.

Titan said recovery in the other segments of the Company comprising Indian dress wear and accessories was still slow and these divisions recorded an income of Rs 36 crore compared to Rs 50 crore in the previous year, a decline of 28%.

C K Venkataraman, Managing Director of Titan Company said: "The recovery witnessed has been significantly better than what we had hoped just a few months back... We believe the focus on productivity and cash generation will help improve the company's margins in the future." During the quarter, Titan also made a provision for Rs 137 crore relating to impairment in the investments in Favre Leuba AG (FLAG), a wholly owned subsidiary.