Q1FY21 results: Titan Company reports net loss of Rs 297 crore

Titan Company Ltd., an Indian consumer goods company, announced its quarterly results on August 10, 2020. The company posted a consolidated net loss of Rs 297 crore for Q1FY21, which declined by 181.59 per cent YoY, as compared to Q1FY20 when it reported  profit of Rs 364 crore.                                                                                                                                                               

The consolidated net sales reported in Q1FY21 came in at Rs 1,979 crore, which declined by 61.58 per cent YoY from Rs 5,151 crore in Q1FY20. At EBITDA level, the company stood at negative Rs 253 crore in Q1FY21 that decreased by 144.08 per cent YoY. For Q1FY20, it posted an EBITDA of Rs 574 crore.     

EBITDA margin as of Q1FY21 was at -12.08 per cent that declined by 23.92 per cent YoY. The net profit margin in Q1FY21 came in at -15.01 per cent, which decreased by 22.08 per cent YoY. The net profit margin in Q1FY20 was at 7.07 per cent.                    

The revenue also included bullion sale of Rs 601 crore which helped the company turn net cash positive in the quarter despite the low level of revenues.

The disruption caused by COVID-19 pandemic, followed by lockdown in India hampered the revenue of the company severely as the retail stores were shut for major part of the quarter. Revenue from the watch business declined as low as 90 per cent YoY. Similarly, revenue from the eye wear business and other businesses like accessories and fragrance dropped 80 per cent and 88 per cent YoY respectively.

However, the gradual unlock process around the country has helped the recovery of revenue. As of June revenue recovered 23 per cent the watch business and it recovered 35 per cent for eye wear business.

By the end of the first quarter, 83 per cent of total stores were operational. Although, all stores are not operating on all days in all states due to intermittent lockdowns and local restrictions.

On Tuesday, reacting to the result, the share opened 3 per cent down from its previous closing price. At around 11:41 am, it is trading at Rs1,068.8 with a drop of 3.52 per cent on BSE.