Titan Company Q2: Titan Company’s profits fell 38 percent in the second quarter of FY 2021. During this period, Titan Company has earned standalone profit of Rs 199 crores. The company had a profit of Rs 320 crore in the same quarter a year earlier. However, the company has performed better on a quarterly basis. Earlier, the Titan Company had a loss of Rs 270 crore in the June quarter. In the June quarter, the company’s profits were hit hard due to the lockdown. It is clear from the results of the second quarter that the company’s business has improved.
89% recovery in sales
Titan’s sales have recovered 89 percent in the second quarter of the fiscal year 2020-2021. The company’s total income in the September quarter was Rs 4389 crore. This includes the sale of gold bullion worth Rs 391 crore. Titan Company’s income was Rs 4,466 crore in the same quarter last year. If we remove bullion sales, then there is a decline of about 11 percent in the company’s revenue compared to the same quarter last year.
Strong recovery in every segment
Since the lockdown phase in the Titan Company’s business, vigorous rewiring has been seen. The company has recently given a statement that Titan’s business has reached pre-Covid level. Since July, the company’s business has reached a normal level in the September quarter i.e. Q2. The jewelery recovery rate in Q2 has been around 98 per cent on an annual basis. There has been a 55 percent recovery in watch business in Q2. 390 crore worth of jewelery is sold in Q2. Gold sales continue to grow. There is a 61 percent recovery in the eyewear business. Titan says that almost all showrooms of all divisions have opened due to the unlock. The rate of arrival of customers is gradually becoming normal.
Stock weakness
After the quarterly results, Titan Company shares have a weakness of around 1.5 per cent and are trading at a price of Rs 1,215.50. The stock closed at Rs 1231 yesterday. Although in today’s business it made a high of Rs 1,241, while it took a low of Rs 1185.
Brokerage positive on stock
Experts believe that Titan’s business will get a boost in the festive season. The thing that the company is getting the most benefit from is the Titan Company Organized Jewelery in lifestyle category and leading position in the segment of watches. Its mid-term growth outlook remains good. It is getting support from wedding / fashion jewelery. Expect better sales in the coming days in the wedding season. Due to the shift to jewelery business organized players, the company has benefited from faster recovery in unlock. Brokerage house Motilal Oswan has advised to invest in the stock and has given a target of Rs 1400. At the same time, brokerage house ICICI Direct has advised to buy the stock giving a target of Rs 1450.
Source: www.financialexpress.com
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