Titan Co’s Q2 net profit fall 38%
Titan Company’s share price shed 4% in the early trade on October 29 after the company posted its September quarter earnings.
The operator of Tanishq jewellery outlet reported fall in the net profit because of pre-closure of hedging contracts even as sales rose for its mainstay jewellery business.
It has reported standalone net profit of Rs 199 crore for Q2FY21 against a loss of Rs 270 crore quarter-on-quarter (QoQ) and a profit of Rs 320 crore year-on-year.
The company’s standalone revenue came in at Rs 4,318 crore against Rs 1,862 crore QoQ and Rs 4,435 crore YoY.
The standalone EBITDA of the company came at Rs 294 crore against Rs 513 crore YoY. EBITDA margin stood at 6.8 percent against 11.6% YoY.
Although, Titan is emerging stronger from the crisis and its valuations, on the bourses, already discount positives, but the revenue recovery is likely to lag heightened expectations.
Titan posted good recovery in Q2FY2021 with 98% of the business recovering to pre-covid levels.
Titan to benefit from people shifting to trusted brands and market share gains. This, along with a relatively stable balance sheet, makes it a better play in the retail space.
In the quarter ended September 2020, the big bull Rakesh Jhunjhunwala reduced stake in Titan Company after his wife, Rekha, sold 50,000 shares in the September quarter, according to a regulatory filing.
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