May 09, 2019

Titan Records Topline Growth of 21.8%; Jewellery Business Increases by 23% for FY 2018-19 Y-o-Y

Titan Company Limited recorded a topline growth of 21.8% on a standalone basis for the Financial Year (FY) 2018-19, the Company announced, remarking that it “was an extremely good year in terms of overall business performance”.  

For FY 2018-19 Titan reported an income of Rs. 19,070 crore; as compared to an income of Rs. 15,570 crore recorded for FY 2017-18. 

Income for Q4 stood at Rs. 4,672 crore as compared to Rs. 3,917 crore in the same period of the previous year, registering a growth of 19.3%.

Standalone profit before tax for FY 2018-19 touched Rs. 1,927 crore, growing by 22.7%. “This is after 100% provision for investments in inter corporate deposits amounting to Rs.145 crore made in IL&FS and impairment of investment in its Swiss subsidiary Favre Leuba, amounting to Rs. 70 crore (exceptional item),” Titan explained.

Titan’s standalone net profit for the year amounted to Rs. 1,374 crore marking an increase of 18.2%.

Consolidated income for Q4 stood at Rs. 4,889 crore and for FY 2018-19 it amounted to Rs. 19,779 crore; while consolidated net profit for Q4 touched Rs. 349 crore and for FY 2018-19 touched Rs. 1,389 crore.

Titan’s jewellery division continued to turn in a sparkling performance despite challenges facing the industry as a whole. During FY 2018-19, the jewellery business accomplished sales worth Rs. 16,030 crore, marking an increase of 23%, over the previous year.

“The year witnessed the launch of many successful collections in jewellery as well as an effective wedding campaign,” Titan noted.

Titan’s watches business recorded an income of Rs. 2,441 crore for FY 2018-19, marking an increase of 14.8%.  The income from the eyewear business was Rs.511 crore, registering a growth of 23.2%.  Other businesses of the company comprising accessories, fragrances and sarees recorded a sale of Rs.133 crore, growing by 40.4%.

The Company said the year “witnessed aggressive expansion” of its retail network with a net addition of 115 stores by watches, jewellery, eyewear and Indian dress wear businesses. As on 31st March 2019, the Company had 1,595 stores, with over 2.05 million sq.ft of retail space.

Bhaskar Bhat, Managing Director of the Company commented: "The growth momentum of the past few years continued in 2018-19 backed by the strong revenue as well as profit growth across all key divisions. The jewellery business grew through successful launch of design differentiated collections as well as tailwinds provided through regulatory developments over the last couple of years like GST.”

He added: “Many steps are being taken to prepare the Company for the future and set a foundation for healthy growth in the years to come."

A dividend of Rs. 5.00 per share of Re 1 each (500%) was recommended at the Board Meeting held yesterday.