Titan Ltd sales plummet in March amid coronavirus pandemic
Jewellery and watchmaker Titan Ltd witnessed a slump in sales across categories in March due to the ongoing lockdown, amid the coronavirus pandemic.
The company’s jewellery division witnessed a 5 percent drop in sales in the January-March quarter mainly due to poor sales in March.
The company’s eyewear segment witnessed a 20 percent drop for the quarter. However, watches and wearables division grew by 1 percent, despite significant loss of sales in March.
Titan’s other businesses including fragrances and ethnic wear also witnessed a strong growth of 42 percent during the quarter over the same period last year.
The drop in jewellery sales is expected to severely impact Titan’s Q4 results as jewellery, which is sold under the Tanishq brand by Titan Ltd, contributes about 80 percent to its topline.
“Consequent to the serious disruptions in operations in March, revenue growth for the quarter and consequently for the year has been impacted severely. The company is working out its strategy to manage this crisis with a particular focus on ensuring adequate liquidity is available till normalcy returns. The cost will be another major focus area for the company in these trying times,” Titan Ltd said in a statement.
Titan Ltd currently has 1,709 retail chains across India for all its brands. For the financial year 2018-19, Titan had posted a net profit of Rs 1,389 crore ($193.6 million), while its revenue was Rs 19,961 crore.
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