Titan Co. Ltd shares surged as much as 8.5% on Tuesday after the company announced earnings for the third quarter (Q3) that exceeded analyst expectations.
Titan reported a 12.9% year-on-year growth in standalone net profit for the December quarter on the back of better-than-expected operating performance.
In a stock exchange filing on Tuesday, the company said standalone profit increased to Rs 470 crore during the December quarter from Rs 416.2 crore in the same period last year.
Titan shares closed the session at Rs 1,273 apiece on Tuesday, up 7.3%, after hitting the day’s high of Rs 1,287.80. The stock has jumped over 19% in the last one year compared with a 7% rise in the benchmark Nifty 50 index.
Titan’s standalone revenue from operations grew 9.4% year-on-year and 40% sequentially to Rs 6,206.2 crore in the December quarter. The jewellery business, which contributes 87% to the company’s total income, grew 10.6% in the December quarter compared with a year ago.
“The growth we saw during the festival period of October and November was very encouraging. The month of December 2019 witnessed a drop in footfall across all our retail formats compared to the previous two months and hence the sales were muted. The retail growth for our jewellery business was healthy in Q3 on account of a good wedding season,” said CK Venkataraman, Managing Director at Titan.
Titan’s watches segment, however, posted a 2.4% year-on-year decline in revenue in the December quarter, whereas the eyewear business grew by a muted 2.9%.
At the operating level, Titan’s earnings before interest, tax, depreciation and amortisation (Ebitda) surged 25.9% to Rs 735.6 crore in the December quarter compared with a year ago, while Ebitda margin rose 155 basis points to 11.85%.