Titan Industries Ltd. - Triples profit after tax in Q3
In the back drop of a recovering economy and positive consumer sentiment, Titan Industries Limited has come up with a record performance, tripling its profit after tax to Rs.78.35 crore, in Q3 this year as against Rs 23.52 crore last year. The net profit in the same quarter last year however was impacted to the tune of Rs.19.44 crore : Rs.12.78 crore due to reduction in the discount rate for actuarial valuation of Gratuity & Leave Salary and Rs. 6.66 crore towards interest on income tax of earlier years. Even after accounting for these, PAT has shown a healthy increase of 82.4% over the same quarter last year.
The Company recorded a growth of Rs.29.5% in income, growing from Rs.1034.88 crore last year to Rs.1399.77 crore this year in the Q3. The Company's PBT stands at Rs.98.28 crore in Q3 as against Rs.41.01 crore during the same period last year. For the nine month period ended December 2009, PBT crossed the Rs.250 crore mark and stood at Rs.259.37 crore as against Rs. 199.60 crore during the same period last year.
Both the mature businesses of the company, watches and jewellery, recorded good growth in Q3. Jewellery income in Q3 was Rs.1054.52 crore a growth of 34% over last year's income of Rs.788.69 crore. The watches business recorded an income of Rs.240.94 crore as against Rs.193.11 crore last year in Q3, a growth of 25%. The Company's other businesses declined by 6.8% over last year to Rs.40.25 crore in Q3, due to the postponement / cancellation of orders from overseas customers in the Precision Engineering Division. The new Eyewear business has grown its retail presence through Titan Eye+ stores to over 40 towns.
The Company maintained the momentum of retail expansion across all its businesses and closed December 2009 with 5 18 stores nationally, with a total retail area of 6.6 lakh sq.ft. in 143 towns.
Net profit of the Company for the nine months' period ended December 2009 was Rs.199.07 crore as against Rs. 133.09 crore last year, a growth of 50%. During the nine months ended December 2009, the Watch Division sales grew by 11.5% from Rs. 668.45 crore last year to Rs. 745.03 crore this year. Jewellery division grew by 16.5% to Rs. 2512.69 crore this year from Rs. 2156.59 crore during the corresponding period last year.
Mr. Bhaskar Bhat, Managing Director of the company stated that "Quarter 3 has been a healthy quarter for us marked by good growth in retail and all other channels on account of the good festival season The growth in profits has also been driven by several cost control initiatives implemented across the company."
S. Ravikant
Executive Vice President
(Corporate Communications)
Q3-09-10-ResultsTitan.zip
