Titan's result in the 4th quarter of 2019 - i.e. Jan- March 2019 were positive.
Revenue of the company grew by 19.3% as compared to last year.
Profits of the company however remained stagnant - as compared to last year.
This was because the company had to make certain provisions which increased its cost and decreased its profits.
These were
Revenue of the company grew by 19.3% as compared to last year.
Profits of the company however remained stagnant - as compared to last year.
This was because the company had to make certain provisions which increased its cost and decreased its profits.
These were
- Investments in IL&FS (which went bust in 2018) of Rs.46 crores.
- Inventory valuation ( which reduced in value as Gold price fell) of Rs.37 crores.
- Ex-gratia payment to staff of Rs.34crores.
Titan's jewellery revenue was 84% of its total revenue which grew by 21% over last year.
Its Watch revenue was 11% of its total revenue which remained stagnant compared to last year.
All other's accounted for the balance i.e. 5% of the total revenue.
Thus Titan, still remains - predominantly - a jewellery company.
Unlike many other companies, Titan also gave a guidance (projections) for the coming year of a 20% growth in its jewellery business. This is because - post demonetisation - there is a shift from un-organised to the organised sector.
In the organised sector also certain mid-level players are under stress due to GST and Demonetisation.
This is positive for Titan.
Titan is 4 times in last 5 years
(Source : www.nseindia.com)
Titan is 300 times in last 17 years
(Source : www.nseindia.com)
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