BHASKAR BHAT, MD, Titan
Source: CNBC
Seeing over 15% volume growth in watches, jewellery
IndiaⳠleading watch manufacturer Titan Industries⠳econd quarter net profit rose 22 percent year-on-year to Rs 180 crore, in-line with street expectations. Total income in the July-September quarter was up 9 percent to Rs 2,276 crore and margins expanded to 11%.
Its income from watches was up 13 percent to Rs 472 crore, while jewellery business grew 6 percent to Rs 1,724 crore. Profits from jewellery business rose 35 percent at Rs 215 crore. Titan is currently seeing over 15% volume growth in the watches and jewellery segment.
The diamond jewellery sales grew faster than plain gold jewellery. It is higher margin category has contributed to the EBITDA growth. The precision engineering business is a small contributor while the performance in the watches segment has not been that satisfactory.
While the company will pursue aggressive growth in diamond jewellery sales, there will be a natural shift towards plain gold jewellery in this quarter. As a result margin percentage will drop but total profits will grow quite significantly.
We are seeing signs of improving consumer sentiment in most parts of the country. There are pockets which are little slow. We do expect Diwali sales to again bunch up closer to Diwali, four-five days is normally the behavior.
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