Titan Company reported a standalone net loss of Rs 270 crore in the first quarter of fiscal 2021 as against a net profit of Rs 371 crore in the year-ago period. CNBC-TV18 analysts' poll had estimated a net loss of Rs 175 crore.
Revenue during the quarter declined 62.3 percent to Rs 1,862 crore from Rs 4,939 crore, YoY.
The company reported an EBITDA loss of Rs 246 crore in Q1FY21 as against EBITDA gain of Rs 565 crore in Q1FY20.
Revenues included sale of bullion worth Rs 601 crores done to reduce inventory given the low level of sales due to the disruptions in activity, the company said in a regulatory filing.
"The severity of the disruption in business due to the pandemic impacted the Company's performance resulting in an unprecedented loss for the company. The recovery in business, particularly in the jewellery business is encouraging and we expect to get back to normalcy by the fourth quarter of this year. The company's reassessment of its cost structure during this period and inherently strong Balance Sheet, will help it to create a stronger base for a sustainably higher profit margin business," said C K Venkataraman, Managing Director, Titan Company.
Revenue from jewellery segment in Q1FY21 declined 57 percent to Rs 1,738 crore from Rs 4,047 crore, YoY. The segment’s EBIT loss stood at Rs 54 crore as against EBIT profit of Rs 442 crore, YoY.
Watches segment revenue plunged to Rs 75 crore from Rs 715 crore while the segment’s loss was at Rs 164 crore as against a profit of Rs 128 crore, YoY.
Eyewear segment revenue during the quarter fell to Rs 30 crore from Rs 149 crore. The segment reported EBIT loss widened to Rs 31 crore from Rs 11, YoY
"The recovery rate of revenue started improving slowly and as of June it was 21 percent for the Watches and Wearables division, 77 percent for the Jewellery division and 25 percent for the Eyewear division, the company said.
The company's retail chain stands at 1,736 stores, as on 30th June 2020 with a retail area crossing 2.2 million sq.ft. nationally for all its brands.
"With the negative consumer sentiment prevailing in the quarter, discretionary spends were very low and specifically impacted our Watches business and diamond-studded jewellery in the Jewellery business. Plain gold jewellery sales, however, recovered better than expected in June despite high gold prices," it added.
Of the subsidiaries, Titan Engineering and Automation Ltd (TEAL) reported revenues at Rs 76 crore, a decline of 19 percent.
CaratLane, being in the consumer discretionary space was hit by the pandemic and ended with a revenue of Rs 42 crore, a decline of 68 percent and a net loss of Rs 19 crore for the quarter.
On Friday, shares of Titan Company ended 1.57 percent higher at Rs 1,107.80 on the BSE.