GST Gain for Tanishq: Company Reports an Income Growth of 54 percent in Q1
The first quarter of FY2017-18 was an extremely good one for Titan Company, with the company registering 42 percent growth in revenue and 110 percent growth in profit before tax (PBT). The sales income grew to Rs3,944.49 crore in Q1 this year from Rs2,769.55 crore last year. The PBT for the same period grew to Rs370.70 crore from Rs176.13 crore, driven largely by healthy growth in the jewellery business.
The jewellery division recorded an income growth of 54 percent in the first quarter, growing to Rs3,307.71 crore as against Rs2,150.59 crore last year. The watches business grew from Rs499.73 crore in Q1 last year to Rs.509.92 crore this year, recording a growth of 2 percent.
Retail expansion continued with a net addition of 31 stores across all its businesses in the first quarter, ending the period with a retail area of over 1.83 million sq ft nationally. The company’s retail chain is 1,397 stores strong as on June 30, 2017, and is expanding, with growth plans in place for all its retail businesses such as watches, jewellery and eyewear.
The company has put together plans to stimulate demand for all its product categories through innovative advertising campaigns and new product launches in the coming quarters.
Bhaskar Bhat, managing director, Titan Company, stated, “Our Jewellery business has delivered a stellar performance in the first quarter due to a combination of one of the best Akshaya Tritiya sales, a very successful gold exchange programme as well as an element of advancement of sales in June 2017 in anticipation of higher GST rates. All retail formats of our watches business recorded growth but the top line growth was subdued due to postponement of Titan and Fastrack brand activations. The performance of our eyewear business has been adversely impacted due to a slowdown of the sunglass category. Driven by the jewellery business, our profits saw an outstanding growth this quarter.”