Titan Company Limited on May 3 reported a 7.2 percent fall in its on-year net profit to Rs 491 crore for the quarter ended March, which was sharply below analysts' estimate of Rs 618 crore.
The company's revenues in the reported quarter grew merely 2 percent on-year to Rs 7,276 crore, which was above the street expectation of Rs 6,935 crore.
The company's board has recommended a dividend of Rs 7.5 per share for the financial year ended March 31, 2022.
"Despite frequent disruptions in the quarter owing to the COVID wave-3 and other geo-political factors, the quarter has been satisfactory in terms of growth and profitability," Managing Director CK Venkataraman said in a press statement.
The muted topline performance of the company in the quarter was because of the jewellery business where sales fell 4.1 percent year-on-year to Rs 6,132 crore due to partial store closures caused by the outbreak of Omicron variant of COVID-19 earlier in the quarter.
Other segments, however, fared well with watches and wearables business reporting 12 percent on-year growth to Rs 622 crore. The eyecare operations also reported growth of 6 percent on-year to Rs 134 crore.
The operating performance of the company was underwhelming as operating profit declined 1.6 percent on-year to Rs 782 crore, which was sharply below analysts' expectations.
The company's operating margin in the reported quarter shrank 40 basis points on year to 10.7 percent.
The jewellery division, however, reported a earnings before interest and tax of Rs 780 crore as against Rs 703 crore in the year-ago quarter. However, operating performance of other divisions declined sharply on a year-on-year basis.
"The Company is well prepared and looking forward to an exciting Q1 with all its stores ramped up for a much-awaited Akshaya Tritiya festival this year," Venkataraman said.
Titan said that it added 269 stores during the year taking its overall retail presence including that of arm CaratLane to 2,178 stores.
On May 2, shares of Titan ended 2.9 percent lower at Rs 2,386 on the National Stock Exchange. Indian stock market is closed on May 3 on account of Eid celebrations.Titan misses estimate, Q4 net profit falls 7.2%, as jewellery business hits topline growth - Moneycontrol
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