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Covid-19 hit, Titan’s profit decline in December quarter

Tata group company Titan, which sells jewellery, watches and eyeglasses, saw an 11 per cent drop in net profit in the third quarter (October-December 2020-21). However, during this period, the company’s revenue has increased by 18 per cent. The company’s jewellery business saw an increase and steadiness, but the watch and eyeglasses business has registered a slight decline.

Jewellery business increased but glasses and watch business declined 

The company’s jewellery business has recorded a spectacular growth in the third quarter. The company’s jewellery sales increased to Rs 6,589 crore as compared to Rs 5,409 crore in the third quarter of last year. However, the sales of watches in the third quarter declined to Rs 550 crore from Rs 625 crore in the third quarter of last year. Sales of iWare have come down and it has come down from 133 crores to 124 crores rupees. In some brokerage houses, recommending investment in Titan Company, the target is fixed at Rs 1,800. Some brokerages say that the company has recovered from the impact of Covid 19 and the business is now on track. The jewellery business has gained strength. The company has a better growth outlook in the midterm. The number of titan showrooms are also increasing, which is a better sign.

Good investment potential in the company 

Some brokerages believe that the company’s balance sheet is good. For the past few years, the company has also increased aggressive marketing and the scope of its product. Even in small cities, the company has good plans for expansion. Analysts say that there is good growth ahead in every segment of the company. Further growth is expected to continue due to the company’s brand strength and franchise-based business model. So one can invest in Titan shares.

 

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