Titan Q3 results: Net profit declines 11% to Rs 419 cr, revenue up 18%

Titan Company Ltd on Wednesday reported 11 per cent year-on-year decline in net profit at Rs 419 crore for October-December quarter, hit by a one-time provision.

The company's total income rose 18 per cent to Rs 7,324 crore during December quarter, while earnings before interest, tax, depreciation and amortisation (EBITDA) rose 19 per cent to Rs 896 crore.

"The company made a provision for Rs 137 crore relating to impairment in the investments in Favre Leuba AG (FLAG), a wholly owned subsidiary, consequent to the decision of the company to significantly scale down the operations outside India," Titan said in a release.

Also read: Former L&T Infotech CFO Ashok Kumar Sonthalia appointed as Titan's CFO

The revenue from jewellery segment rose 16 per cent to Rs 6,249 crore during the quarter, while that from watches segment declined 12 per cent to Rs 550 crore. Revenue from eyewear segment fell 7 per cent to Rs 124 crore.

"There was a significant recovery in the diamond studded segment of the jewellery business. While coins sales continue to remain high, wedding jewellery segment also witnessed a very good growth in the quarter," Titan said.

However, the recovery in other segments, comprising Indian dress wear and accessories, was still slow and these divisions recorded an income of Rs 36 crore as compared to Rs 50 crore in the previous year, a decline of 28 per cent.

On a consolidated basis, the company's net profit rose 12 per cent to Rs 530 crore.

Commenting on the results, the company's Managing Director C K Venkataraman said, "The recovery witnessed has been significantly better than what we had hoped just a few months back...We believe the focus on productivity and cash generation will help improve the company's margins in the future."

Also read: Titan to scale down operations of Swiss watch brand Favre Leuba