Titan dips 4%, trades lower for third straight day post Q4 results


Shares of Titan Company decreased 4.5 per cent to Rs 1,425 on the BSE in intra-day trade on Monday. The company felled 6 per cent in the past three trading days. This is due to the company’s announcement on its March quarter earnings on Thursday, April 29. The stock of the Tata Group Company was the top loser among the S&P BSE Sensex and Nifty50 indices and the stocks were down less than 1 per cent, at 01:10 pm.

In Q4FY21, Titan Company continued to witness robust business momentum in the quarter and reported revenue of Rs 7,110 crore (excl. bullion sale), growth of 61 per cent year on year (YoY), led by strong growth of 70 per cent in Jewellery division. The Q4FY20 which was the base quarter was weak due to pandemic- lockdowns in the second half of March. Profit after tax increased 48 per cent at Rs 357 crore over the last year quarter.

However, on account of positive operating leverage and a tight leash on operating overheads, Earnings before interest, taxes, depreciation, and amortization (ebitda) margins decreased 210 basis points (bps) YoY to 10.9 per cent. Earnings before interest, taxes, depreciation and amortization (ebitda) margins gained 1059 basis points (bps) which were 33.4 per cent against 22.9 per cent in Q4FY20 due to better product mix and improved operating leverage.

Margins were muted primarily due to lower gross margins in both Jewellery and Watch segments basically arising out of the higher sale of lower-margin products (lower studded share, higher coin sale, large institutional sale of gold coins, higher wearables sales), Titan said.