Tata Group’s Titan Company has closed most of its manufacturing units due to the national lockdown. Also, because of the shutdown of shopping malls and trade centres, the retail stores of the company — Tanishq, CaratLane and World of Titan — have also been closed in many places. Thus, the earnings in the fourth quarter of 2019-20 are likely to take a hit, as per a BusinessLine report.
The growth in the first nine months of FY20, though above industry, has been lower than what Titan has had in the past. A drop in discretionary consumer spending saw revenue in terms of grammage sold drop sharply in Q2 and Q3 — down 14 per cent and 5 per cent, respectively, year-on-year.
In the first nine months of FY20, the company’s earnings reported a growth of 8 per cent. Given the current weak demand, earnings for the full year FY20 is expected to grow by 5 per cent.
In the first nine months of FY20, operating profit margins were 12.3 per cent, up from 11.6 per cent in the same period last year. The expansion in margins is thanks to cost savings and higher sales.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough & Polished
