Titan Company Ltd will report its fourth-quarter earnings on Wednesday and analysts expect the consumer goods company to report a near 19 percent jump in total income.
- The management is expecting a decent quarter. The stock is pretty close to its record high and has seen a surge of almost 50 percent from the lows. The stock trades upwards of 50 times FY20 earnings.
- The management had given a Q4 update and because of which the street has a cheat sheet to work with. For FY19, the management said sales grew by 1 percent, the jewellery revenue grew by 22 percent, watches saw a revenue growth of 16 percent. All these numbers are FY19. Eyewear also grew about 23 percent.
- Add to that the management was fairly confident about FY20 as well and they have targeted a 20 percent growth in the next year despite a muted outlook for the economy.
- A CNBC-TV18 poll suggests total income will rise by about 18.5 percent in Q4. The number that one is looking out for in the standalone revenue is Rs 4,630 crore.
- The EBITDA is likely to grow a little ahead of revenues and that causes a margin expansion. The number that we are looking at on the EBITDA front is Rs 550 crore, margins seem to expand by about 30-40 basis points.