Analysts had expected the company to report net profit of Rs 512.5 crore on revenues of Rs 6,973 crore.
During the quarter, the company took a one-time loss of Rs 137 crore on account scaling down of its subsidiary Favre Leuba. Not accounting for the exceptional loss, the company’s bottomline performance would have been above analysts’ estimates.
Titan Company reported a return to year-on-year growth in sales in the December quarter, suggesting that the company has healed from the impact of the Covid-19 pandemic seen earlier in the financial year.
While the jewellery business grew by 16 per cent year-on-year, the watches and wearables and eyewear divisions also did well with the recovery rate for the quarter being 88 per cent and 93 per cent respectively, the company said.
Sales in the company’s jewellery division grew 16 per cent to Rs 6,249 crore helped by impressive wedding season demand that the company witnessed. More importantly, Titan said that there was significant recovery in diamond studded jewellery suggesting that demand is coming back in the premium segment, too.
The jewellery division’s operating profit in the quarter stood at Rs 752 crore as against Rs 701 crore in the year-ago quarter.
“We are very pleased to see the return to growth in top line for the company and the recording of the highest ever profits in any quarter in the midst of the pandemic that has hit the world so hard,” said managing director CK Venkataraman in an earnings statement.
Shares of the company ended 1.6 per cent higher on the National Stock Exchange at Rs 1,585.