Titan: Sales up but margin contracts - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

Titan: Sales up but margin contracts

Aug 1, 2013 | Updated on Oct 30, 2019

Titan Industries declared its results for the first quarter of financial year 2014 (1QFY14). The company reported 40.9% YoY growth in sales, while net profit grew by 16.9% YoY for the quarter. Here is our analysis of the results.

Performance summary
  • Net sales increased by 40.9% YoY during the quarter. Segment wise, jewellery revenue grew by whopping 47.2% YoY, Watches segment grew by 11.4% YoY. Poor growth in watches segment was due to decline in discretionary spending. ‘Others’ segment which includes precision engineering, eyewear and accessories grew by 37.5% YoY.
  • Total raw material cost this quarter has increased by 49% YoY. As a percentage of sales, raw material cost has increased from 73.7% in 1QFY13 to 77.9% in 1QFY14. This has led to increase in operating expenditure by 43.6%, which is more than the sales growth.
  • Due to high operating expenditure, operating profit has increased by mere 15.6% YoY despite a much better top line. As a result, EBITDA margin has decreased to 7.9% YoY in 1QFY14 from 9.6% in the corresponding quarter of previous year.
  • Other income for the company grew by 51.7% YoY during 1QFY14.
  • Interest cost grew by 35.2% YoY during the quarter.
  • Impacted by subdued operating performance, profit after tax increased by 16.9% YoY during the quarter.

To Read the Full Story, Subscribe or Sign In
To Read the Full Story, Subscribe or Sign In

India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms


Jun 23, 2021 (Close)