Titan Company Shares Q3 Results

Titan Company Shares Q3 Results

Corporate Action
by 5paisa Research Team Last Updated: 2022-08-08T18:46:27+05:30

For Titan, the quarter marked a sharp recovery from the lows of COVID 2.0 and the brief threat of the Omicron virus. There was a revival in festive demand in the Dec-21 quarter as the jewellery business did extremely well. However, other businesses like watches and eyewear also did fairly well, albeit at a smaller level.
 

Here is a Gist of Titan Company Financial Numbers
 

Rs in Crore

Dec-21

Dec-20

YOY

Sep-21

QOQ

Total Income (Rs cr)

₹ 10,037

₹ 7,619

31.74%

₹ 7,493

33.95%

EBITDA (Rs cr)

₹ 1,344

₹ 752

78.72%

₹ 864

55.56%

Net Profit (Rs cr)

₹ 1,004

₹ 525

91.24%

₹ 639

57.12%

Diluted EPS (Rs)

₹ 11.31

₹ 5.92

 

₹ 7.20

 

EBITDA Margin

13.39%

9.87%

 

11.53%

 

Net Margins

10.00%

6.89%

 

8.53%

 

 

Let us start with the top line. For the quarter ended Dec-21, Titan reported 31.74% growth in sales at Rs.10,037 crore on a YoY consolidated basis. For the December 2021 quarter, consumer business (excluding bullion sales) reported 36% growth YoY. The predominant jewellery division showed sales growth of 37% YoY at Rs.6,249 crore. The jewellery continues to be the driving force for growth and profitability at Titan.

In terms of the other key verticals of Titan, the watches and wearables division saw sales growing by 29% YoY at Rs.708 crore. The eyewear business (Titan Glasses) grew by 24% while the fashions and accessories business grew 44%. However, these businesses grew on a much smaller base and hence the growth numbers are not comparable. Apart from the festive recovery, the company had also tweaked its product mix to facilitate higher sales.

Let us now turn to the operating performance of Titan for the Dec-21 quarter. Operating profits were up 78.7% at Rs.1,344 crore on a YoY consolidated basis. During the quarter, earnings before interest and taxes (EBIT) of the jewellery business grew 67.6% at Rs.1,260 crore. On the other hand, the watches and wearables business saw EBIT growing by 44% at Rs.82 crore, showing good traction in the quarter.

Titan currently has a retail chain spread across 2,064 stores in 323 towns and cities across the length and breadth of India. The total space coverage of the entire retail franchise spans a total of 2.7 million square feet. Operating margins for the quarter improved sharply from 9.87% in Dec-20 quarter to 13.39% in Dec-21 quarter. On a sequential basis, the operating margins were higher by 186 bps. Both revenue tweaks and costs were managed well.

Let us finally turn to the bottom line of Titan. Net Profits for Dec-21 quarter were up 91.24% at Rs.1,004 crore on a consolidated YoY comparison basis. To a large extent, the robust operating performance was effectively getting transmitted to the bottom line. Titan also recorded inventory efficiency gains during the quarter, which helped them manage costs.

Margins improved substantially, especially impressive in the retail business. PAT margins improved from 6.89% in the Dec-20 quarter to 10.00% in the Dec-21 quarter. The PAT margins were higher even on sequential basis by 147bps.


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