The first quarter of FY 2017-18 was an extremely good quarter for Titan Company Limited. The company registered a growth of 42 per cent in revenue and a 110 per cent growth in PBT. The sales income grew from Rs 2769.55 crore last year to Rs 3944.49 crore in Q1. The profit before tax for the same period grew from Rs 176.13 crore to Rs 370.70 crore driven largely by a healthy growth in the jewellery business.
The jewellery division recorded an income growth of 54 per cent in the first quarter. The income from this division in Q1 was Rs 3307.71 crore as against Rs 2150.59 crore. The watches business grew from Rs 499.73 crore in Q1 last year to Rs 509.92 crore this year, recording a growth of 2 per cent. The company’s eyewear business was flat at Rs 110.67 for Q1. The company’s other businesses comprising accessories, fragrances and sarees grew by 46 per cent, to Rs. 19.90 crores this year.
Retail expansion continued with a net addition of 31 stores across all its businesses in the first quarter, ending the period with a retail area of over 1.83 mn sq.ft nationally. The company’s retail chain is 1,397 stores strong, as on 30th June 2017 and is expanding with growth plans in place for all its retail businesses-watches, jewellery and eyewear.
The company has put together plans to stimulate demand for all its product categories through innovative advertising compaigns and new product launches in the coming quarters.
Managing Director of the company, Bhaskar Bhat stated that “Our jewellery business has delivered a stellar performance in the first quarter duew to a combination of one of the best Akshaya Tritiya sales, a very successful gold exchange programme as well as an element of advancement of sales in June 2017 in anticipation of higher GST rates. All retail formats of our Watches business recorded growth but the topline growth was subdued due to postponement of Titan and Fastrack brand activations. The performance of our eyewear business has been adversely impacted due to a slowdown of the sunglass category. Driven by the jewellery business, our profits saw an outstanding growth this quarter.”