The branded jewellery maker reported a steep rise in its Q1 FY23 net profit at Rs 793 crore compared with Rs 61 crore in the same quarter last year.
Total income for the quarter was Rs 8,649 crore, a growth of 199%, compared to Rs 2,890 crore of Q1 FY22 (excluding bullion sale).During the quarter ended 30 June 2022, the company sold gold-ingots aggregating Rs 356 crore (previous quarter ended 30 June 2021, Rs 424 crore) to various customers dealing in bullion, which is disclosed as other operating revenues.
The company recorded one of the highest profit before taxes (PBT) of Rs 1,066 crore for the quarter in comparison to Rs 82 crore in Q1 FY22. EBITDA jumped 478% year-on-year to Rs 1,208 crore in Q1 FY23.
Titan Company said it recorded its second-best quarterly revenue in Q1FY23 buoyed by a strong festive demand in a near normal Q1 that came after a gap of two Covid disrupted periods of Q1 FY21 and Q1 FY22.
The company's cost of goods sold (COGS) surged 165% to Rs 6,777 crore during the quarter. Employee benefits expense stood at Rs 324 crore (up 21% YoY) and advertising cost stood at Rs 171 crore (up 363% YoY).
Jewellery business registered an income of Rs 7,600 crore in Q1 FY23 compared to Rs 2,467 crore in Q1 FY22 (excluding bullion sale), a growth of 208% riding on a good Akshaya Tritiya sales and a bett er studded mix compared to the same quarter previous year.
Watches & wearables business reported its best quarterly income of Rs 785 crore with 169% growth in Q1 FY23 compared to Rs 292 crore in Q1 FY22.
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Similarly, EyeCare business also reported its highest quarterly income of Rs 183 crore with 173% growth in Q1FY23 compared to Rs 67 crore in Q1 FY22. Other businesses comprising Indian dress wear and Fragrances & Fashion Accessories reported an income of Rs 56 crore in Q1 FY23 compared to Rs 14 crore in Q1 FY22, a growth of 300%.
Titan added (net) 125 stores during the year. The company's retail chain (including Caratlane) has 2,303 stores across 366 towns with an area exceeding 2.9 million sq. ft. as on June 2022.
Among subsidiaries, Caratlane Trading reported a revenue of Rs 482 crore and a profit of Rs 27 crore (before taxes) for the quarter compared to revenue of Rs 157 crore and loss of Rs 9 crore in the same quarter of the previous year.
Titan Engineering & Automation (TEAL) reported a revenue of Rs 88 crore and a loss of Rs 6 crore (before taxes) compared to a revenue of Rs 65 crore and loss of Rs 1 crore in th e same quarter of the previous year.
CK Venkataraman, managing director of the company stated: "The financial year has begun well for us and we delivered a strong performance in Q1 across our business segments. Despite challenging macro environment, the outlook for the remaining quarters looks positive and we continue to execute our investment plans in India as well as chosen international geographies."
Titan Company, a joint venture between the Tata Group and the Tamilnadu Industrial Development Corporation (TIDCO), commenced its operations in 1987 under the name Titan Watches. In 1994, Titan diversified into Jewellery (Tanishq) and subsequently into EyeCare.
Over the last three decades, Titan has expanded into underpenetrated markets and created lifestyle brands across different product categories including fragrances (SKINN), accessories and Indian dress wear (Taneira).
Shares of Titan Co rose 0.65% to Rs 2439 on the BSE.
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