Titan Q2 misses estimates, profit rises 1.8% on weak jewellery biz

Titan Company reported a muted set of numbers for the quarter ended September 2019. Profit grew 1.8 percent at Rs 320.2 crore on the back of subdued growth in the jewellery business which contributes 80 percent to revenue.

Profit in September quarter 2018 stood at Rs 314.4 crore.

Revenue during the quarter grew by 0.6 percent year-on-year to Rs 4,435 crore, company said in its BSE filing.

Jewellery business revenue fell 1.5 percent to Rs 3,528 crore compared to the year-ago period and its earnings before interest and tax (EBIT) declined 2 percent and margin contracted 5bps YoY.

However, revenue from its watches segment grew 6.4 percent to Rs 718.7 crore, but its EBIT dropped 6.9 percent and margin plunged 220bps YoY during the July -September quarter.

At the operating level, Titan’s earnings before interest, tax, depreciation and amortisation (EBITDA) in Q2FY20 increased 9.9 percent to Rs 513.2 crore and the margin grew by 100bps to 11.6 percent YoY.

Numbers missed analyst expectations. Profit was expected at Rs 378 crore on revenue of Rs 4,515 crore and EBITDA was estimated at Rs 536 crore with a margin of 12 percent, according to the average of estimates of analysts polled by CNBC-TV18.