Titan Company hit a new record high today at Rs.1049, surging almost 6% on the back of its good performance for Q3FY19, following which many brokerage houses upped their target price and put out a ‘buy’ and ‘outperform’ call.
The company for the quarter posted a 35% (YoY) rise in net profit at Rs.416 crore on a 34% increase in net sales at Rs.5672 crore.
EBITDA rose 31% at Rs.585 crore and margins actually slowed a marginal slump from 10.5% to 10.3%.
While there is still no public information on the ability of the IL&FS group to repay its dues, the company considered it prudent to make a further provision of Rs.70 crore, taking the cumulative provision to Rs.99 crore of the total exposure of Rs.145 crore.
The Jewellery division had a good festive season and recorded strong revenue growth of 37%, on back of strong growth in both studded and plain jewellery category. The watches unit showed a strong revenue growth momentum continued for third consecutive quarter, with growth rate of 19% in Q3. Profits of eye wear were affected by continuing investments in brand through advertising.