Titan

The stock hit  a new 52-week high yesterday at Rs.286.90 and this was on the back of the good numbers it posted for Q2FY13. On a 9% (YoY) rise in net revenues at Rs.2276 crore, the company posted a 21% net profit at Rs.269 crore. The market is happy with the numbers and now there is hope that with the festive season and wedding season on, demand is sure to be very high in Q3 and that is expected to amply get reflected in its Q3 performance. The company is also, to take better advantage of the season, launching new products and opening new stores in the current Q3.

The company is today more of a jewellery company than a watch company. 76% of its net revenue came from jewellery and YoY, it was up 6%. Watches contributed 21% and its revenue grew 13%. ‘Others’ which includes eye wear and precision engineering, showed a robust 49% rise in revenue but a reasonable import content in this segment continued to be affected by input cost increases and adverse currency movements leading to an increased loss at EBIT levels. The Titan Industries retail chain is 879 stores strong, as on 30th September 2012 with a retail area crossing 11.3 lac sq.ft. nationally for all its brands. The company expects to end current fiscal with a PBT of Rs.1000 crore.