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Titan: Weak consumer sentiment takes a toll - Views on News from Equitymaster
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Titan: Weak consumer sentiment takes a toll
May 10, 2016

Titan Industries declared its results for the fourth quarter of financial year 2016 (4QFY16). The company reported 1.5% YoY decline in sales, while net profit fell by 14.4% YoY during the quarter. Here is our analysis of the results.

Performance summary
  • Net sales fell by 1.5% YoY during the quarter.
  • Operating profit fell by 23.1% YoY due to operating expenses growing at a pace higher than the growth in revenues. As a result, EBITDA margin contracted to 7.8% YoY during the quarter.
  • Interest expenses for the company fell by 24.5% YoY.
  • Profit after tax fell by 14.4% YoY during the quarter.

    Financial performance snapshot
    (Rs m) 4QFY15 4QFY16 Change FY15 FY16 Change
    Net sales 24,744 24,372 -1.5% 117,910 111,769 -5.2%
    Expenditure 22,261 22,462 0.9% 107,499 103,190 -4.0%
    Operating profit (EBDITA) 2,484 1,909 -23.1% 10,412 8,579 -17.6%
    EBDITA margin (%) 10.0% 7.8% 8.8% 7.7%
    Other income 376 429 13.9% 1,828 1,520 -16.8%
    Interest 137 104 -24.5% 807 423 -47.6%
    Depreciation & amortisation 200 254 27.0% 874 969 10.9%
    Profit before tax 2,523 1,981 -21.5% 10,559 8,707 -17.5%
    Tax 372 139 -62.5% 2,328 1,648 -29.2%
    Profit after tax 2,151 1,841 -14.4% 8,231 7,059 -14.2%
    Net profit margin (%) 8.7% 7.6% 7.0% 6.3%
    No. of shares (m) 887.8
    Reported earnings per share (Rs)* 8.0
    P/E (x)* 46.8

    (*trailing twelve months)

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