Titan Company, a jeweler and wristwatch, recorded a standalone net profit of Rs 987 crore for the December quarter, up 135 percent from a profit of Rs 419 crore the previous quarter.
This compared to an estimate of Rs 858 crore in an ET Now survey. Revenue from product sales totaled Rs 9,381 crore, up 34.80% from Rs 6,912 crore in the previous quarter.
The company stated that demand was solid across all of its consumer businesses. The company’s jewelery section did “exceptionally well,” and other divisions saw increases over pre-pandemic levels.
The jewelry business earned Rs 8,563 crore in October and November, a 37 percent increase, thanks to festive purchases. Titan reported that the division’s earnings before interest and taxes (EBIT) for the quarter were Rs 1,260 crore , up from Rs 752 crore the previous year.
During the quarter, the watches and wearables business earned Rs 708 crore, up 29% from the previous quarter. The division reported an EBIT of Rs 82 crore compared to Rs 57 crore in the same quarter of the previous year.
The eyewear business recorded revenue growth of 26 percent while EBIT came in at Rs 34 crore in the third quarter compared to Rs 22 crore in the same quarter of the previous year.
“Titan’s excellent growth in all companies was driven by festive purchases in the quarter, and the quarter turned out to be one of the best in terms of growth and profitability”. We continue to use technology and creativity to offer new goods and campaigns that have garnered positive feedback from customers. While the commencement of Covid wave 3 has slowed the company’s good growth, Titan MD CK Venkataraman expressed optimism that the year will end on a positive note.
Analysts expected that the company’s EBITDA would be Rs 1,222 crore, with a 12.9 percent EBITDA margin.
The third wave of the epidemic hampered the company’s progress, but it remains optimistic about concluding the year on a high note.
Following the earnings report, Titan shares finished half a percent higher at Rs 2,475.5 per share on the BSE.
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