After an encouraging performance in the first two quarters, Titan Industries has come up with yet another record performance during the third quarter of 2010-11. The net profit in Q3 has grown to Rs137.57 crore from Rs75.43 crore during the same period last year, recording a growth of 82.4 per cent.
The overall growth and improvement in the performance of the company this year has been triggered by good retail growth across all its brands and retail chains. The Titan Industries retail chain is 624 stores strong, as on December 31, 2010 and is rapidly expanding with aggressive growth plans for all its retail businesses — watches, jewellery and eyewear.
The company recorded a growth of 46.9 per cent in income, growing from Rs1339.77 crore last year to Rs1967.91 crore this year in Q3. The company's PBT stands at Rs199.87 crore in Q3 as against Rs98.28 crore during the same period last year, registering a growth of 103.4 per cent.
All businesses of the company have recorded good growth. Jewellery income in Q3 was Rs1578.83 crore, a growth of 49.7 per cent over last year's income of Rs1054.52 crore. The watches business recorded an income of Rs325.12 crore as against Rs240.94 crore last year in Q3, a growth of 34.9 per cent. The company's other businesses, eyewear and precision engineering grew by 37.3 per cent to Rs55.27 crore. The new eyewear business has grown its retail presence through Titan Eye+ stores to over 40 towns and introduced many innovative products — in frames, lenses and sunglasses. The precision engineering division has had a challenging quarter.
The Asian markets are looking up and the watches business in overseas markets grew by 15 per cent over last year. Despite a 19-per-cent increase in gold prices this year in Q3 over the same period last year, Tanishq has recorded high sales growth in both plain and studded jewellery. Tanishq had a successful Queen of Diamond campaign. The company maintained the momentum of retail expansion across all its businesses and ended the quarter with a total of 624 retail outlets covering a retail area of 7.7 lakh square feet nationally.
Bhaskar Bhat, managing director, Titan Industries, stated, “The Indian economy is continuing to do well, with most sectors reporting excellent growths over the previous year. Following the superlative performance in the first half backed by retail sales growth, all our businesses outperformed in Q3 due to excellent festive-season demand.”