Titan Company Ltd reporting the results for Q1 of FY 2019-20 said its topline grew by 14.5% in the period to Rs.4,885 crore from Rs.4,269 crore achieved in Q1 2018-19.

Profit before tax for the period under review, increased to Rs.523 crore from Rs.487 crore in the same quarter of the previous year.

The Jewellery division’s income for Q1 FY 2019-20 stood at Rs.4047 crore as compared to Rs.3572 crore registered last year; recording an income growth of 13.3% in the first quarter.  

However, the Company noted: “Growth in the jewellery segment was adversely impacted by high gold prices, especially during the month of June 2019.”

The Watches business grew from Rs.594 crore in Q1 last year to Rs. 715 crore this year, recording a growth of 20.4%, “powered by excellent growth in brand Titan”, the Company remarked. The Company's Eyewear business grew by 13.1% to Rs.149 crore for Q1 this year. Titan’s other businesses comprising accessories, fragrances and sarees grew by 37.9%, to reach sales worth Rs.36 crore this year.

“The consolidated income and PBT for Q1 of the Company were Rs.5095 crore and Rs.521 crore respectively,” Titan stated.

The Company continued to expand on the retail front, adding a net of 45 stores across all its businesses in the first quarter; with a cumulative retail area of over 2.1 mn sq. ft across the country at the end of Q1. “The Company's retail chain is 1,640 stores strong, as on 30th June 2019 and the network expansion effort will remain undiminished across all its businesses - Watches, Jewellery and Eyewear,” Titan stressed.

Bhaskar Bhat, Managing Director of the Company commented:  "The macro-economic environment coupled with lower consumption have impacted some of our businesses. The retail growth in jewellery was driven by encouraging performance in the studded as well as wedding jewellery segments. However, there has been a weak consumer sentiment prevailing across, especially in jewellery with additional factors like price volatility and customs duty increase. The Watches business has done well, with a growth of 20% while retaining its focus on healthy margins. The profit growth for the Company appears subdued due to investments made in biennial overseas conferences for our business associates across all divisions as well as the impact of wage settlement with our unionized employees that was cordially concluded in this quarter. The Company is gearing up on all fronts across its portfolio of brands and businesses to stimulate demand in the coming quarter through innovative campaigns and new product launches.”