X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Titan: Profits go for a toss - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • Jul 30, 2001

    Titan: Profits go for a toss

    Titan Industries has reported a dismal performance for the first quarter of the current financial year. Sales in 1QFY02 has tumbled by 22.6% to Rs 882 m. The company in its press release has said that it is primarily on account of downstocking and adverse economic conditions.

    (Rs m) 1QFY01 1QFY02 Change
    Sales 1,140 882 -22.6%
    Other Income 99 5 -94.7%
    Expenditure 1,070 855 -20.1%
    Operating Profit (EBDIT) 69 27 -61.8%
    Operating Profit Margin (%) 6.1% 3.0%  
    Interest 113 125 11.2%
    Depreciation 55 53 -3.5%
    Profit before Tax 1 (146)  
    Extraordinary item - -  
    Tax 0 -  
    Profit after Tax/(Loss) 1 (146)  
    Net profit margin (%) 0.1% -16.6%  
    No. of Shares (eoy) (m) 42.3 42.3  
    Diluted number of shares 42.3 42.3  
    Earnings per share (Rs) 0.1 (13.8)  

    Also, the company has stated that the first quarter sales and profits have remained subdued historically and are skewed to the subsequent quarters when trade purchases peak to meet consumer demand in the festival and marriage seasons that follow. However, it could also be due to various other reasons.

    The company continues to suffer from cheaper imports flooding from all across the world. To put things in perspective, the South East Asian countries, which are some of the key exporters of electronics to the US, are also gradually exporting to the Indian markets due to the slow down in some of their key consumers. Besides, any design of new range of watches are copied by small players in a matter of three to four months, which also affects volume growth. Though the company's jewellery division seems to have performed well, value growth continues to remain a cause of concern.

    Though expenses have fallen by 20.1% to Rs 855 m, operating margins have almost halved in the first quarter. In 1QFY01, the company made a profit on sale of shares of RDI Publishing to the extent of Rs 97 m. If one were to exclude the other income component in 1QFY01, Titan had actually reported a loss of Rs 95 m. Titan's 1QFY02 perfromance should be viewed in this light.

    The scrip is currently trading at Rs 35 at a P/E multiple of 6.3x the FY01 earnings. Excluding the other income component from FY01 earnings, the scrip currently trades at 10.6 times.

     

     

    Equitymaster requests your view! Post a comment on "Titan: Profits go for a toss". Click here!

      
     

    More Views on News

    Titan: Jewellery Business Lights up the Quarter (Quarterly Results Update - Detailed)

    Aug 10, 2017

    However, growth at these levels are unlikely to be sustainable.

    How to Ride Alongside India's Best Fund Managers (The 5 Minute Wrapup)

    Jun 10, 2017

    Forty Indian investing gurus, as worthy of imitation as the legendary Peter Lynch, can help you get rich in the stock market.

    Titan: Beating the Demonetisation Blues (Quarterly Results Update - Detailed)

    Feb 14, 2017

    Titan Industries declared its results for the third quarter of financial year 2017 (3QFY17). While topline growth was 14.7% YoY, net profit grew by 13.1% YoY during the quarter. Here is our analysis of the results.

    Titan: Margin Improvement Saves the Day (Quarterly Results Update - Detailed)

    Nov 16, 2016

    Titan Industries declared its results for the second quarter of financial year 2017 (2QFY17). While topline growth was flat, net profit grew by 23.5% YoY during the quarter. Here is our analysis of the results.

    Titan: High Gold Prices Spoil the Show (Quarterly Results Update - Detailed)

    Aug 9, 2016

    Titan Industries declared its results for the first quarter of financial year 2017 (1QFY17). The company reported 3.3% YoY increase in sales, while net profit fell by 16.3% YoY during the quarter.

    More Views on News

    Most Popular

    This Small Cap Can Drive Chinese Players Out of India (and Make a Fortune in the Process)(The 5 Minute Wrapup)

    Aug 17, 2017

    A small-cap Indian company with high-return potential and blue-chip-like stability is set to supplant the Chinese players in this niche segment.

    Dear PM Modi, India is Already Land of Self-Employed, and It Ain't Working(Vivek Kaul's Diary)

    Aug 21, 2017

    Most Indians who cannot find jobs, look at becoming self-employed.

    It's the Best Time to Buy IT Stocks(Daily Profit Hunter)

    Aug 16, 2017

    The IT Sector could be in an uptrend till February 2019. Are you prepared to ride the trend?

    5 Steps To Become Financially Independent(Outside View)

    Aug 16, 2017

    Ensure your financial Independence, and pledge to start the journey towards financial freedom today!

    Think Twice Before You Keep Money In A Savings Bank Account(Outside View)

    Aug 22, 2017

    Post demonetisation, a cut in bank savings deposits rates was in the offing.

    More
    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407
     

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms

    TITAN COMPANY SHARE PRICE


    Aug 24, 2017 12:02 PM

    TRACK TITAN COMPANY

    • Track your investment in TITAN COMPANY with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
    • Add To MyStocks

    TITAN COMPANY 8-QTR ANALYSIS

    Detailed Quarterly Results With Charts

    COMPARE TITAN COMPANY WITH

    MARKET STATS