Titan Industries Ltd has registered a 76.5 per cent rise in profit after tax (PAT) in the first quarter of FY 2010-11. The PAT has grown to Rs.81.28 crore from Rs.46.04 crore during the same period last year.
According to the official communiqué, the overall growth and improvement in performance of the company in the first quarter has been triggered by good retail growth across all its brands and retail chains. Titan Industries retail chain is 568-stores-strong, as on 30th June 2010 and is rapidly expanding with aggressive growth plans in place for all its retail business – watches, jewellery and eyewear.
The company recorded a growth of 42 per cent in income, growing from Rs.888.60 crore last year to Rs.1260.24 crore this year in Q1. The company’s PBT stands at Rs.108.63 crore in Q1 as against Rs.63.73 crore during the same period last year, registering a growth of 70.5 per cent.
Jewellery income in Q1 was Rs.950.54 crore, registering a growth of 49.6 per cent over last year’s income of Rs.635.55 crore. The Watch business recorded an income of Rs.254.02 crore as against Rs.208.57 crore last year in Q1, a growth of 21.8 per cent. Titan’s other businesses, Eyewear and Precision Engineering, grew by 37.5 per cent to Rs.53.80 crore. The Eyewear business has grown its retail presence through Titan Eye+ stores to over 40 towns. The Precision Engineering Division recorded a growth of 59 per cent in sales income in Q1 as overseas orders are showing signs of revival.
The growth in watches as well as jewellery was driven by a good wedding season in Q1 in the domestic market. The Asian markets are looking up and the watch business in overseas markets grew by 52 per cent over last year. Despite a 22 per cent increase in gold price this year, over last year, Tanishq has recorded high sales growth in both plain and studded jewellery.
Tanishq launched its new high value diamond jewellery campaign in Q1. The company maintained the momentum of retail expansion across all its businesses and ended the quarter with a total retail area crossing seven lakh sq.ft nationally.
Bhaskar Bhat, MD of the company stated, “The year has begun well for us and Q1 has been a healthy quarter marked by good growth in retail and all other channels. The growth in profits has also been driven by several cost control initiatives implemented across the company.”
— Indiaretailing Bureau