May 12, 2017

Titan Company's income grows 44 percent in fourth quarter

The fourth quarter, January–March 2017, was an extremely good one for Titan Company with an income growth of 44.3 percent. The company recorded a growth of 14.5 percent in the financial year 2016-17, reporting an income of Rs12,717 crore for the year ended March 2017. This performance came in the backdrop of a changing environment and regulators such as demonetisation. Income for Q4 stood at Rs3,460 crore against Rs2,398 crore last year.

Profit before tax (PBT) for the year 2016-17 grew 16.3 percent to Rs1,033 crore after an exceptional item of Rs96 crore incurred towards a voluntary retirement scheme offered to employees.

The PBT before this exceptional item is Rs1,130 crore, a healthy growth of 27 percent. The net profit for the year is Rs762 crore, a growth of 9.2 percent. These figures are standalone numbers for the company and do not include subsidiaries.

The jewellery business of the company crossed the Rs10,000 crore mark. Income from the jewellery segment grew 17.4 percent to Rs10,237 crore. The year witnessed the launch of many successful collections in the jewellery segment as well as an effective wedding campaign. The company’s watch business recorded an income of Rs2,028 crore, a growth of 2.7 percent.

The key highlight of the year was Titan's entry into the world of smart watches through the launch of Titan Juxt Pro, Sonata Act – the safety watch for women – and Fastrack Reflex, the fitness band. The income from the eyewear business was Rs406 crore, recording a growth of 8.4 percent on the back of an aggressive network expansion strategy. Other businesses of the company, comprising accessories, fragrances and sarees, recorded a sale of Rs65 crore, a growth of 18.4 percent. Precision Engineering, the company’s fourth business, was converted into a subsidiary and stands as an independent company – Titan Engineering and Automation (TEAL). Titan Company’s consolidated income from ‘other’ segments, including accessories and subsidiaries such as TEAL, was Rs334 crore.

The year witnessed aggressive expansion of its retail network with a net addition of 84 stores across the watches, jewellery and eyewear businesses. As on March 31, 2017, the company had 1,366 stores, with over 1.8 million sq. ft. of retail space delivering a retail turnover in excess of Rs13,325 crore.

Bhaskar Bhat, managing director, Titan Company, stated that, “The year 2016-17 was an extremely satisfying year in terms of company performance, given the market conditions.

The strength of company's brands, the reach of its retail and distribution network and the effectiveness of new product introductions and marketing campaigns was tested in a difficult environment. The various businesses of the company retained their focus on the company and took bold steps, wherever needed, to drive growth and enhance profitability. We believe we are well prepared and are taking steps to set up a good foundation for the years ahead.”

Considering the performance of the company, a dividend of Rs2.60 per share (260 percent) was
announced after the board meeting held on May 12, 2017.

View Titan Company’s audited financial results for the year ended March 31, 2017.