Titan informs about closue of operations; stock slips 10%

The Company has been trying to balance the interests of the customers and employees to the extent possible in its decision to operate or shut down retail stores.

Mar 23, 2020 10:03 IST India Infoline News Service

Titan Company
Titan Company Limited (Titan) informed the exchanges Sunday that with the outbreak of the Coronavirus (COVID-19) pandemic, the Company has been monitoring the events on the ground closely and has been taking a series of actions to address the situation. In the interest of the investors and stakeholders, an update is being given despite the situation being extremely fluid and uncertainty in operations in the near future also being very high.

Offices
The Company is very concerned about the welfare of its employees and has therefore adopted a work from home policy for all its offices across the country starting 17th March, 2020 and will continue with this policy till it is felt safe to work from office. Technology is being fully leveraged and as of now, critical back end operations are being managed with minimum staff, or remotely. With the banking system working efficiently, collection and payment processes continue to operate normally.

Manufacturing facilities
Based on the current circumstances, the Central and State Government directives and the Company’s own risk perception, the Company has decided to close down all its manufacturing units in all businesses across the country for 1 week, starting 23rd March, 2020. The situation will be evaluated at the end of this week and further course of action will then be decided.

Retail stores
The Company has been trying to balance the interests of the customers and employees to the extent possible in its decision to operate or shut down retail stores. Walk-ins had fallen in some businesses over the last week and therefore the Company managed stores with around 75% rotational staffing with adequate precautions being taken to ensure that social distancing norms were followed. Based on Government directives, many malls and large high street stores have been closed.

All stores were closed on the 22nd March, 2020 in deference to the exhortation of the Prime Minister. However, based on the current COVID-19 situation and the Company’s current assessment of risk to its employees and customers, a decision has been taken to shut all the stores (Company operated and franchisee operated) across all the brands till the 29th March, 2020, when the situation will be reviewed on whether to continue with the closure or not.  

Stock view:
Titan Company Ltd is currently trading at Rs801.60 down by Rs104.95 or 11.58% from its previous closing of Rs906.55 on the BSE.
The scrip opened at Rs860 and has touched a high and low of Rs860 and Rs800 respectively. So far 10,02,523 (NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs80,482.25cr.

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