Jewellery maker Titan Company's standalone net profit in the second quarter of fiscal 2021 fell 37.8 percent to Rs 199 crore from Rs 320 crore in the same period last fiscal.
Standalone revenue declined 2.6 percent to Rs 4,318 crore from Rs 4,435 crore, YoY.
Earnings Before Interest, Taxes, Depreciation, and Amortization or EBITDA fell 42.7 percent to Rs 294 crore as against Rs 513 crore while EBITDA margin contracted by 476 bps to 6.81 percent from 11.57 percent, YoY.
The company's Jewellery business revenue reported a growth of 8.8 percent at Rs 3,837 crore as against Rs 3,528 crore. CNBC-TV18 poll had estimated revenue decline of 2 percent.
The Jewellery division EBIT was down 25 percent at Rs 285 crore for the quarter as compared to Rs 384 crore in the previous year. Segment's EBIT margin was at 7.4 percent versus 10.9 percent, YoY.
The Watch division reported a loss of Rs 4 crores for the quarter as compared to EBIT of Rs 113 crore, YoY.
With the lockdowns being lifted in most parts of the country, the company said it was able to operate most of its stores across all its divisions.
"Customer walk-ins have started improving even as social distancing norms remain. The recovery rate of revenue improved substantially in the quarter, with the rate being 55 percent for the watches and wearables division, 98 percent for the jewellery division and 61 percent for the eyewear division," Titan Company said in an exchange filing.
"The recovery that the company has witnessed in the quarter has been very satisfying and the positive consumer sentiment witnessed gives rise to hope that the festive period could be good for all the divisions of the company," said C K Venkataraman, Managing Director of Titan.
The company's retail chain (including CaratLane) stands at 1,832 stores, as on September 30, 2020 with a retail area crossing 2.4 million sq ft for all its brands covering 290 towns, the company said.
At 2:15 pm, the shares of Titan Company were trading 2.04 percent lower at Rs 1,207.55 on the BSE as against 1.51 percent fall in the benchmark Sensex.
First Published: IST