Titan reported a standalone net profit of ₹199 crore in the second quarter of FY21 which ended in September. This big turnaround can be seen as a big positive note after the company reported a loss of ₹270 crore in the previous quarter. However, the profit is ₹121 crore less than that reported in the last year for the same quarter due to the effect of COVID-19.
The company posted a 1.72 percent decline in total income at Rs 4,389 crore in Quarter 2 of FY21, from Rs 4,466 crore in the September quarter of 2019 with around 11 percent decline in total income excluding bullion sales. The total income for the quarter includes the sale of gold bullion to the extent of Rs 391 crore.
A Titan spokesperson said, “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% for the Watches and Wearables division, 98% for the Jewellery division, and 61% for the Eyewear division.”
“While the customer sentiment improved substantially in the quarter, there was greater willingness to spend on plain gold jewelry and gold coins rather than pure discretionary items, explaining the reason why the recovery rates in Watches and Eyewear and even studded jewelry within the Jewellery division were lower,” they also added.