After a sterling performance in its silver jubilee year 2009-10, Titan Industries has come up with yet another record performance during the first quarter (Q1) of 2010-11. The profit after tax in Q1 this year has grown to Rs81.28 crore from Rs46.04 crore during the same period last year.

 

The overall growth and improvement in performance of the company in the first quarter has been triggered by good retail growth across all its brands and retail chains. The Titan Industries retail chain is 568 stores strong, as on June 30, 2010 and is rapidly expanding with aggressive growth plans in place for all its retail business — watches, jewellery and eyewear.

 

The company recorded  a growth of 42 per cent in income, growing from Rs888.60 crore last year to Rs1260.24 crore this year in Q1. The company's profit before tax (PBT) stands at Rs108.63 crore in Q1 as against Rs63.73 crore during the same period last year, registering a growth of 70.5 per cent.

 

All businesses of the company have recorded good growth. Jewellery income in Q1 was Rs950.54 crore, a growth of 49.6 per cent over last year's income of Rs635.55 crore. The watches business recorded an income of Rs254.02 crore as against Rs208.57 crore last year in Q1, a growth of 21.8 per cent. The company's other businesses, eyewear and precision engineering, grew by 37.5 per cent to Rs53.80 crore. The new eyewear business has grown its retail presence through Titan Eye+ stores to over 40 towns and introduced many innovative products — in frames, lenses and sunglasses. The precision engineering division recorded a growth of 59 per cent in sales income in Q1 as overseas orders are showing signs of revival.

 

The growth in watches as well as jewellery was driven by a good wedding season in Q1 in the domestic market. The Asian markets are looking up and the watch business in overseas markets grew by 52 per cent over last year. Despite a 22 per cent increase in gold price this year over last year, Tanishq has recorded high sales growth in both plain and studded jewellery. Tanishq launched its new high-value diamond jewellery campaign in Q1. The company maintained the momentum of retail expansion across all its businesses and ended the quarter with a total retail area crossing seven lakh sq ft nationally.

 

Bhaskar Bhat, managing director, Titan Industries, stated, “The year has begun well for us and quarter one has been a healthy quarter marked by good growth in retail and all other channels. The growth in profits has also been driven by several cost control initiatives implemented across the company. People are our biggest asset and our company has once again been ranked first in the retail category as a 'great place to work' and among the top 25 across all categories.”