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.
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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.
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 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.
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