Titan Company Ltd, the watch and jewellery major, has reported a Rs 706 crore net profit (standalone) for 2015-16, registering 14.2 per cent decline from Rs 823 crore in 2014-15 due to weak market conditions.
Titan has reported an income of Rs 11,176 crore for the year ended March 2016, registering a decline of 5.2 per cent over the previous year. This performance came in the backdrop of an environment where the consumer sentiment did not pick up as expected. Income for Q4 however declined by only 1.5 per cent, at Rs 2437.15 crores.
Profit before tax for the year declined by 17.5 per cent to Rs 870.66 crore and net profit declined by l4.2 per cent over last year to Rs 705.85 crore.
Weak consumer sentiment had an impact on retail sales across all businesses of the company. The watches business recorded an income of Rs l953.55 crore, a growth of 1.7 per cent. This was achieved through planning and execution of various initiatives including new products and campaigns. The key highlight of the year was Titan’s entry into the world of smart watches through launch of ‘Titan Juxf’.
The income from jewellery segment saw a decline of 7.6 per cent at Rs 8717.40 crore. The absence of revenues from the Golden Harvest scheme for the first eight months of the current fiscal and the disruption caused by the industry wide strike in the last quarter contributed significantly to the decline in revenue. The year saw launch of many successful collections in jewellery as well as an effective wedding campaign.
The income from eyewear business stood at Rs 371.58 crore, recording a healthy growth of 11.8 per cent on the back of an aggressive network expansion strategy.
Other businesses of the company comprising precision engineering business, accessories and fragrances recorded a sale of Rs 235.17 crore, a growth of 1.3 per cent.
The year witnessed aggressive expansion of its retail network with a net addition of 82 stores by watches, jewellery and eyewear businesses. As on March 31, 2016, the company had 1283 stores, with over 1.7 million sq.ft of retail space delivering a retail turnover in excess of Rs 11,010 crore.
“The year 2015-16 is behind us now. We are looking at opportunities of profitable growth while making investments behind our brands. The company will be exploring new avenues for technology induction in products and retail in addition to enhance the digital skills and capabilities of the organization. The premium space too has done well for our brands and investments will be made in creation of highly differentiated products for the discerning consumer,” Managing Director, Titan, Bhaskar Bhat said.
The company had declared an interim dividend of Rs 2.20 per share in March 2016. Considering the performance of the company in 2015-16, the directors have not recommended any further dividend.