Titan’s festive season sales leads growth, Q3 profit jumps 21 percent to Rs 281 crore

By

Maverick Martins

Published
Feb 2, 2018

Tata group firm Titan Company Ltd witnessed a 21 percent surge in profit to Rs 281 crore (approx $ 44 million) with company attributing the strong quarter to high festive season sales across all categories. Titan had posted a net profit of Rs 232 crore (approx $36.3 million) in the same period last year.
 

The jewellery, watches and accessories maker saw its revenue grow 7 percent to Rs 4,296 crore (approx $672 million) from the Rs 3867 crore (approx $605 million) it reported year ago for the October-December quarter.
 
The company witnessed growth across all its verticals with its jewellery business retailed under the Tanishq brand contributing significantly to the overall revenue with Rs 3569 crore (approx $558.3 million) while Titan’s watches segment earned revenue of Rs 535 crore (approx $84 million).

The company claimed that the government’s decision to roll back a notification under the Prevention of Money Laundering Act (PMLA) that any sale of gold above Rs50,000 required customers to furnish their PAN (Permanent Account Number) or Aadhaar details to the jeweller lead to boost in jewellery sales during the months of November and December.
 
Titan EyePlus brand revenue saw a marginal decline in sales from Rs 90.65 crore to Rs 90.37 crore due to its restructuring exercise.
 
“The third quarter was an eventful quarter with suspension of the applicability of PMLA, favourable to our jewellery business and reduction of GST rates for watches, sunglasses and optical frames. All our businesses recorded good sales in the festival season,” Bhaskar Bhat, Titan’s managing director said in a statement.
 
“It was an extraordinary quarter with the company registering record levels of profits. Many new products were launched by all our brands during the quarter. Our effort continues to be one of generating demand through new product introductions and network expansion,” Bhat added.
 
Titan also launched a men’s jewellery sub-brand under Tanishq called ‘Aveer’ in the last quarter. Titan Company ltd ended the quarter with 1439 stores across the country.