Yesterday, in anticipation of the Q4FY20 results, Titan Company rose 7.5% to Rs.1065 and today, now that the results are out, there was profit booking and the stock fell almost 3% today to an intraday day low at Rs.992; it has recovered from there and is now back in the reckoning at Rs.1041, up over 2%.
The company posted a 21% (YoY) growth in net profit though total income fell 5.5% to Rs.4469 crore. Cost cuts, lower raw material prices and lower tax outgo helped shore up the bottomline.
In terms of segments, jewellery revenue fell 6%, revenue from watches rose 5%, eyewear declined 17% and other segments comprising Indian wear and accessories rose 12.5%.
The company hopes to make a full recovery by Q4FY21, mainly on the back of wedding season taking off in H2 and festive Q3. It expects to see some benefit from deferred demand coming in Q1.
It is promoting itself as the “Safest stores in town” and re-imagining the digital platform.