Titan Company reported healthy set of consolidated numbers for the quarter with revenue and PAT coming in-line with estimates. The company reported revenue growth of 15.7% yoy to Rs5,151.1cr, broadly in-line with estimates. Led by healthy revenue growth, EBITDA grew by 18.8% yoy to Rs573.4cr, ~16% above our estimates (we had incorporated higher input cost). EBITDA margin remained flat on yoy basis to 11.1% (estimate of 10.1%). However, with increase in depreciation and interest costs, company’s PAT growth was restricted to 10.8% yoy to Rs363.7cr, in-line with estimates.
The jewellery segment reported 14.3% yoy growth in revenue to Rs4,146cr. The EBIT of the segment grew by 13.7% yoy, however, the EBIT margin remained flat on yoy basis at 10.5%.
The watches segment’s revenue grew by 20.1% yoy to Rs716cr. The EBIT of the segment reported growth of 19.7% yoy, however, the EBIT margin remained flat on yoy basis at 16.6%.
Eyewear segment reported revenue growth of 13.1% yoy to Rs149cr, however, the segment reported loss of Rs11cr during the quarter.
Gross margin of the company remained flat on yoy basis to 27.4%.
Depreciation and interest costs were up by 86.4% and 210.8% yoy.
Other income grew by 58.0% to Rs57cr.
Retail expansion of the company continued with a net addition of 45 stores across all its businesses during the quarter taking the count to a total of 1,640 stores with a retail area of over 2.1 mn sq.ft nationally.
Amid the subdued consumer sentiment, company plans to launch new products and use innovative campaigns to stimulate the demand.
Titan Company Ltd is currently trading at Rs. 1,032.50, down by 4.3 points or 0.41% from its previous closing of Rs. 1,036.80 on the BSE.
The scrip opened at Rs. 1,029.70 and has touched a high and low of Rs. 1,070 and Rs. 1,022.75 respectively. So far 60,17,888 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 50 DMA.
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